Paris, France (4E) – President-elect Francoise Hollande on Tuesday flew to Germany for a eurozone debt crisis meeting with Chancellor Angela Merkel but his plane was hit by lightning and it returned to Paris. He was unhurt and took another plane to resume his flight to Berlin.

The incident came just hours after his inaugural as the new leader of France at the Elysee Palace in Paris. Former president Nicolas Sarkozy formally turned over power to the 57-year-old Hollande.

According to a presidential spokesman, the plane hit by lightning turned back for safety reasons. Planes are usually hit by lightning with the electricity being dispelled through their wingtips, but turning around after a strike is rare, according to a BBC transport correspondent.

Hollande decided to have a dinner meeting with Merkel, his second act as president after naming Jean-Marc Ayrault as his prime minister at 5 p.m., to renegotiate the European Union fiscal pact and make it growth-oriented instead of austerity-oriented as the German leader wanted it to be.

In his televised inaugural speech, Hollande said he will propose to Merkel a plan to reduce public debt while stimulating the economy.

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New York, NY, United States (AHN) – U.S. stocks fell on the open Tuesday as political uncertainty in Greece kept investors wary and on edge.

Just after the opening bell on Wall Street, the Dow Jones Industrial Average slumped 83 points, the Standard & Poor’s 500 Index slid 8 points and the NASDAQ suffered a 20-point drop.

Market participants were keeping a close eye on developments in Europe, one day after Greece’s main central-right party failed to form a coalition government. The left-wing coalition, opposed to austerity measures as a means to close Greece’s mounting debt gap, has just three days to form a new government.

These new developments have raised fears that Greece might be forced to drop out of the eurozone and have investors on edge.

While various parties move to form a new coalition government in Greece, new elections will most likely be held come June. The imposing question is whether Greece will be forced to renegotiate its bailout funding.

In world markets Tuesday, European stocks faltered in morning trading and Asian markets ended mixed.

U.S. markets shrugged off early jitters Monday following weekend elections in Greece and France and recovered somewhat. But stocks tumbled Tuesday on the open on renewed European debt fears.

In corporate news, McDonald’s reported same-store sales increased 3.3 percent globally and in the U.S. While the fast food chain’s sales rose 3.5 percent in Europe, it recorded just a 1.1 percent gain in its Asia Pacific, Middle East and Africa regions. Those numbers failed to impress, sending McDonald’s shares lower by 2.6 percent.

Rival Wendy’s also reported and also disappointed, falling short of analysts’ expectations. Shares slipped some 4 percent in morning trading.

After the close Tuesday, Dow component Disney will report,. The studio had a blockbuster weekend with ‘The Avengers,” but also had a major bomb with “John Carter” early in the year.

In currencies and commodities, the dollar gained against the euro and British pound, but dropped against the Japanese yen.

Oil continued its slide, falling 85 cents to $97.09 a barrel.

Gold for June delivery gave back $10.30 to $1,628.80 a troy ounce.

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Riyadh, Saudi Arabia (The Media Line) – When Reem Muhammad sought a personal loan to pay off some lingering debts, a Saudi bank offered 100,000 riyals ($26,667). The price tag? Repayment of the loan, plus 33,000 riyals.

“I took the loan and repaid it, but I never knew what the 33,000 was for since it wasn’t interest,” Muhammad, 38, told The Media Line. “But it sure felt like interest.”

Muhammad is one of thousands of Saudis taking advantage of Saudi Arabia’s healthy economy and banks’ increasing willingness to offer personal loans and credit cards. Her loan also illustrates the continuing debate in the Saudi banking industry whether some aspects of the loan system contravene shariah, or Islamic law, that guides how Muslims conduct financial transactions.

Personal loans in Saudi Arabia jumped nearly 20-fold to a staggering 219 billion riyals in 2011, up from an estimated 11 billion riyals in 1998. Loans included 27.7 billion riyals in property loans due in part to the passage of the 2011 mortgage law. Credit card debt in 2012 is estimated about nine billion riyals.

Asher Noor, chief financial officer for the Riyadh-based AlTouq Group, a global investment firm, told The Media Line the increase in loans reflects Saudi Arabia’s strong economy.

“I find the increase in line with the growth of the Saudi economy, an emergence of an affluent middle class and creation of more high net worth individuals now than at any time in the past,” says Noor, who emphasizes he was offering a personal opinion. “The surge in personal loans is not just due to proliferation of credit cards in the Saudi economy, although plastic money has clearly made it easy to stack up debts. Real estate loans have also been a big reason for personal loan surge.”

Until about 2000, banks were reluctant to issue personal loans to individuals, preferring to limit their lending to large companies. Consumer credit card use was also relatively rare.

However, the demand for easier access to money has increased as the Saudi middle class has grown more affluent. Banks devised methods to offer credit cards compliant with shariah. Islamic law does not permit usury, charging or paying interest and conducting business contrary to Islamic values, such as operating a casino and selling pork or alcohol.

Saudis pay a fixed monthly fee on credit cards. Banks may require customers to have a savings account with a specific amount of money on deposit. Charges for late payments may be about 3 percent of the outstanding balance. Another way the card issuer earns a profit is to pre-purchase an item a customer plans to buy and then instantly resell it to him at a higher price.

Noor acknowledged there is “cause for concern” over the rapid increase in consumer loan and credit card debt, but the Saudi Arabian Monetary Agency (SAMA) has not allowed it to get out of control. “I think SAMA has not been asleep at the wheel and has kept the commercial banks in check with regulations like limiting loan to deposit ratios.”

SAMA in 2006 established regulations that total loans may not exceed 33 percent of the total salary of employees and 25 percent of the income of retirees. Nabil Al-Mubarak, executive-director of SIMAH, told the Arab News that SIMAH’s policy labels card debtors as defaulters under two conditions: if they have not paid for six consecutive months and if the amount due is SR 500 and more.

Noor said the criteria to issue credit cards is heavily regulated in Saudi Arabia, noting that customers are rarely pre-approved and must prove their eligibility for credit cards. “There are SAMA regulations dictating the credit card and personal loan limits and the central database [Saudi Credit Bureau] SIMAH is monitoring defaults,” he said.

Noor said that given the large expatriate population, whose work and residence permits are linked, banks are very careful in credit card issuances and usually require having a bank account with them, salary transfer and employer letter before a card is issued.

“Since expatriates here are unable to leave the kingdom with credit card debts disproportionate to their earnings or end of service, the banks here have not struggled with staggering default rates as elsewhere,” Noor said.

Yet the explosion in obtaining credit cards and personal loans, and how banks charge fees, has led to consternation among some Islamic scholars whether the high fees are tantamount to paying interest.

Ahmed Alkady, a trainer at the Jeddah-based Islamic Development Bank, told The Media Line that he sees no difference between paying penalty fees and charging interest on credit cards.

“I don’t use or even recommend credit cards,” Alkady said, “It is a hidden type of interest as banks make you pay what they call a fine or a penalty for failing to pay them back on time. The same thing is applied in non-Islamic banks but they call it interest. I see no difference between the two unless you make sure you don’t use it for drawing cash. Or when you buy goods make sure you pay it back before the end of the time limit.”

Alkady also considers Muhammad’s 100,000-riyal loan as contrary to Islamic values with some Saudi banks skirting shariah-compliant regulations.

Islamic banks use an asset-based loan system, such as providing an automobile loan, in which the bank purchases the car, maintains ownership and then rents it to the customer. The customer makes monthly payments that add up to more than what the bank paid for the vehicle. Ownership is then transferred to the customer once all payments are made.

Alkady described Muhammad’s loan as tawreeq, or securitization, meaning the asset is made into a financial tool like a share in a company. The transaction originates with an item, such as equipment or even property bought by the bank and then sold to the customer to be paid for on an installment basis. This allows the bank to raise the price of the item as a way of earning a profit while at the same time providing immediate liquidity for the borrower.

However, the Organization of Islamic Cooperation’s International Council of Fiqh Academy, a group of Islamic scholars, ruled in 2009 that tawreeq is “legal trickery” with roots in interest-based lending.

Alkady said the Islamic Development Bank followed with a similar ruling in April 2011. “The bank’s scholars have issued a decree in which they consider tawreeq un-Islamic simply because the bank is selling goods that it does not actually own,” he said.

Yet most Islamic banks worldwide embrace tawreeq, with many Islamic scholars in Muslim countries endorsing the practice.

Sami Al-Nwaisir, chairman of Al-Sami Holding Group, wrote in the Arab News recently that loans “favor the banks and their regulations” and “the unfair contracts by banks designed for their benefit alone, which victimize and suppress the individual through the systematic brutality of the one-sided agreement.”

Noor faults the banks for not educating borrowers. “Islamic banking is asset-based and borrowers need to understand that to better appreciate it,” he said. “Bankers, however, remain the culprit by complicating documentation and structures, and thus making it difficult for the layman to make a rational choice.”

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Brussels, Belgium (AHN) – Greek politicians have reached a deal that will help the financially ailing Mediterranean country avoid a messy default.

Political leaders struck a deal for a package of austerity measures Thursday. The move clears the way for a swap to cut the nation’s debt and secure its second round of rescue money in two years.

At a press conference Thursday in Frankfurt, Greek Prime Minister Lucas Papademos called European Central Bank President Mario Draghi to tell him “an agreement has been reached.” An official announcement is expected later in the day.

The accord was reached less than four hours before eurozone finance ministers are set to hold an emergency meeting in Brussels to discuss the 130 billion euro ($1.72 billion) lifeline. Holders of Greek debt will take a 70 percent haircut.

A Greek default would be devastating to the entire European region and would send ripple effects that would rock world economies.

Talks of a deal have been stymied for months as leaders worked out what they considered an acceptable deal. The agreement comes just in time. A formal offer for the debt swap must be made by Feb. 13 to allow all procedures to be completed before the March 20 Greek bonds come due.

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Washington, D.C., United States (AHN) – Roseanne Barr has filed the official paperwork necessary to run for the Green Party nomination for president of the United States.

Barr filed her paperwork with the Federal Election Commission on Jan. 25. Her filing creates a four-way race for the Green nomination, which is to be decided at the Green Party Nomination Convention in July.

The comedian tweeted Thursday, “I am running for Green Party nominee for POTUS. I am an official candidate. I am4 the Greening of America & the world. Green=peace/justice.”

‘I will run until the convention in July in Baltimore, I fully expect Jill Stein 2b the nominee & I will support her, but till then-I’ll serve,” Barr continued in several tweets that followed her announcement.

Barr’s platform, as detailed in a tweet, is a promise to institute “#Europeanstyle” single payer healthcare within the first 100 days of her term, and to forgive all credit card and mortgage debt “by kicking out the FED-those who all this fake debt is owed.”

In May 2010, in a campaign announcement, Barr outlined a more detailed platform. “First, to make war illegal and legalize hemp and marijuana. Second, change the demographics of government to include more women. Third, outlaw–how do we say this politely–outlaw bull. Yes, that’s it. Outlaw bull.”

On the Green Party website, Barr expressed her support for the Occupy Wall Street Movement and said, “Both the Democratic and Republican parties are bought and paid for by corporate America and cater to the needs of the highest bidder as opposed to the people the claim to represent. I cannot be bought.”

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New York, NY, United States (AHN) – Wall Street opened lower Friday after a report showed that the U.S. economy expanded less than forecast..

Just after the opening bell, the Dow Jones Industrial Average was lower by 33 points, the Standard and Poor’s 500 Index was flat and the NASDAQ was up by about 6 points.

Weighing on stocks was a report that showed the U.S. economy expanded at 2.8 percent in the fourth quarter, less than the 3 percent that had been projected.

In Europe the Stoxx Europe 600 Index slipped 0.7 percent as investors await word on developments on the region’s sovereign debt crisis. European Union Economic and Monetary Affairs Commissioner Olli Rehn said authorities are “very close” to reaching an agreement on private-sector involvement in a Greek debt swap.

Despite those words of optimism, the dismal growth of GDP in the U.S. was keeping investors cautious. The health and growth of the U.S. economy is a very important and leading indicator of economic growth worldwide. As analysts like to say, “when the U.S. sneezes, the world catches a cold.”

In corporate news, Ford fell after reporting numbers that missed estimates. Starbucks shares slipped despite reporting better than expected numbers, and Juniper Networks plunged after the second biggest maker of computer networking equipment forecast sales and profits that missed estimates.

In commodities, oil was unchanged at $$99.60 a barrel, gold rose $4.70 to $1,725 a troy ounce and silver was up a few pennies at $33.63.

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New York, NY, United States (AHN) – Wall Street opened mixed to lower Friday morning following earnings reports from General Eclectic and Google that disappointed.

Just after the opening bell, the Dow Jones Industrial Average was flat, the S&P 500 Index was down 3 points and the NASDAQ fell 9 points.

Weighing on stocks was an earnings report from Dow component General Electric. Shares of GE dropped more than 2 percent after the largest U.S. conglomerate reported roughly flat profit from continuing operations, and revenues that missed estimates.

Meanwhile, Internet giant Google tumbled more than 8 percent, or 52.38, to 586.66, after the search engine reported quarterly profit and revenue that missed Wall Street estimates. Google blamed the shortfall on declining search advertising rates.

Microsoft shares rose 3 percent after decent earnings, and IBM rose $4.87 to $185.45 after giving a strong outlook on a strong earnings report.

Investors are still keeping a close eye on developments in Europe regarding the sovereign debt crisis.

Greece and its private bondholders were “converging toward” a long-awaited debt swap deal, with an initial agreement coming as early as Friday that would prevent a default from Greece.

In commodities, oil was trading off $1.19 to $99.20 a barrel, and gold was down $1.20 to $1,652.90 a troy ounce.

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Atlanta, GA, United States (AHN) – Oh how the tall and mighty have fallen.

Atlanta’s tallest building, Bank of America Plaza, a tower bought at the market peak, has been struggling with rising vacancy rates and a heavy debt load.

A foreclosure date has been set for the storied tower. According to a public notice, the building will go up for auction on Feb. 7.

The foreclosure auction comes three months after owner BentleyForbes Group LLC, a Los Angeles real estate firm, defaulted on its $363 million mortgage.

Since then, the company has been in negotiations to restructure its debt.

According to a statement from BentleyForbes, the company “remains committed to work with its financial partners” to stabilize the capital structure of the 55-story, 1,024-foot tower.

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Rome, Italy (AHN) – Italy’s borrowing rate came down slightly at its latest bond auction, but still remained high with investors worried over the eurozone debt crisis.

Interest rates on 10-year bonds dropped by only 0.5 percentage points from the yield prices on debt auctioned in November. However, economists said that the important thing was that there were still buyers willing to invest in Italy’s government bonds.

The Italian government auctioned off $8.96 billion worth of medium and long-term debt on Thursday with interest rates of 6.98 percent on 10-year bonds.

There was better news for the costs of short and medium-term borrowing with interest on new three-year debt falling to 5.62 percent from 7.89 percent paid last month. It auctioned $11.8 billion of short-term debt on Wednesday.

It will have to auction more bonds to raise enough money within the next few months to repay $208 billion in debt between February and April.

It does not help that the euro has lost value. After the auction, the euro fell in value in currency pair trading to its lowest level against the dollar in 15 month at $1.287 before rising to end at $1.29 on Thursday.

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New York, NY, United States (AHN) – The U.S. Treasury Department sold $13 billion in 30-year bonds Wednesday at a record low yield of 2.925 percent.

Despite the debt security having the lowest yield on record, investors in the U.S. and around the world still have a hearty appetite for the long bond.

Bidders offered to buy 3.05 times the amount of debt sold, compared to an average of 2.81 times at the last four comparable auctions.

Indirect bidders, those that include global central banks, bought 32.5 percent of the sale, compared to 36.1 percent on average.

Direct bidders–domestic money managers–purchased another 21.2 percent, versus an average of 19.5 percent.

Following the oversubscribed and highly successful auction, the broader bond market continued the rally.

Yields on 10-year notes, which move in the opposite direction to prices, fell 5 basis points to 1.92 percent.

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