| Wall Street up on banks, housing data Posted:  NEW YORK (Reuters) - Stocks rose on Tuesday, led by financial and housing shares, after home resales rose in April to their highest annual rate in nearly two years in another sign that the housing market may be on the road to recovery. But gains were capped as Facebook shares lost about 20 percent of the online social network's IPO price in just two days following its market debut, and as a downgrade on Japan from Fitch heightened concerns about the global economic growth. The S&P 500 financial sector index was up 1.6 percent. Bank of America Corp rose 3.4 percent to $7. ...
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| Home resales rise, boding well for economy Posted:  WASHINGTON (Reuters) - Home resales rose in April to their highest annual rate in nearly two years and a falloff in foreclosures pushed prices higher, hopeful signs for the country's economic recovery. The National Association of Realtors said on Tuesday that existing home sales increased 3.4 percent to an annual rate of 4.62 million units last month, the highest since May 2010. "The housing market is showing some signs of life," said Gary Thayer, a macro strategist at Wells Fargo Advisors in St. Louis. Nationwide, the median price for a home resale jumped to $177,400 in April, up 10. ...
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| SEC looking at JPMorgan financial reporting Posted:  WASHINGTON (Reuters) - The Securities and Exchange Commission will look into the "appropriateness and completeness" of JPMorgan Chase & Co's financial reporting, SEC Chairman Mary Schapiro told the Senate Banking Committee on Tuesday. Earlier this month, JPMorgan said it had lost at least $2 billion - a figure that's expected to grow - on trades tied to credit derivatives. Schapiro said her agency's probe will focus on the accuracy of the company's first-quarter financial and earnings statements. ...
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| Facebook drops again as pressure to perform mounts Posted:  (Reuters) - Facebook's shares fell again on Tuesday, leaving them down nearly one-third from Friday's highs as questions mounted over the company's financial prospects and its ability to grow fast enough to meet the hype surrounding its stock. After Friday's nearly flat close and Monday's 11 percent plunge, the stock tumbled again Tuesday -- 4.2 percent to $32.60 in the first 90 minutes of trading. That was a decline of 28 percent from Friday's high of $45, but well off its lows of the morning. Volume was again massive, with more than 45 million shares traded as of around 11 a.m. ...
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| Germany, France draw battle lines over common bonds Posted:  BERLIN/PARIS (Reuters) - Germany dismissed a French-led call for euro zone governments to issue common bonds, a day before a European Union summit which investors are looking to for new measures to counter the bloc's debt crisis. After a torrid week, stock markets rallied on optimism that the Wednesday summit would produce measures to foster growth and ward off the threat of contagion should Greece exit the euro. The FTSEurofirst 300 index of top European shares closed up 1.9 percent and Spanish and Italian borrowing costs fell, leaving scope for disappointment if the EU leaders underwhelm. ...
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| Vodafone takes $6.3 billion writedown on European weakness Posted:  LONDON (Reuters) - Mobile operator Vodafone wrote down the value of its assets by 4 billion pounds ($6.3 billion) and cut its medium-term sales target on Tuesday, as the debt crisis hit customers in southern Europe, forcing them to save money on phone calls. Vodafone, the largest telecom operator in the world, posted full-year results in line with forecasts and stood out from its peers by paying a record dividend as strength in emerging markets, Germany, Britain and Turkey offset a slump in spending in Spain and Italy. ...
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| Do more to boost growth, IMF tells Britain Posted:  LONDON (Reuters) - Britain's struggling economy needs the Bank of England to pump in more money and possibly cut record-low rates, while the government should back off its austerity program if things get worse, the International Monetary Fund said on Tuesday. The international lender said the government should step up efforts now to get credit flowing, raise infrastructure spending and, if the euro zone crisis escalates, consider temporary cuts to sales and payroll taxes. "Growth is too slow and unemployment, including youth unemployment, is too high. ...
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| Google names new Motorola Mobility CEO Posted:  NEW YORK (Reuters) - Google Inc completed its $12.5 billion purchase of Motorola Mobility Holdings Inc and named a new chief executive for the cellphone maker, who vowed to focus on "fewer, bigger bets." Google, which made the deal to gain access to Motorola's vast trove of technology patents, said on Tuesday that Motorola Chief Executive Sanjay Jha has stepped down and has been succeeded by Dennis Woodside, former president of Google's Americas region. Woodside oversaw planning for the Motorola integration, according to Google. Jha will be retained to help manage a transition period. ...
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| Ireland-bound Eaton is latest to end U.S. corporate citizenship Posted: (Reuters) - Eaton Corp's purchase of electrical equipment maker Cooper Industries means another U.S. company will soon leave the United States in favor of relocating its headquarters to a foreign country with sharply lower taxes. In the case of diversified industrial manufacturer Eaton , a complicated corporate structure will allow it to become part of an Irish corporation and enjoy that country's low 12.5 percent corporate tax rate. The top U.S. ... |
| Fitch cuts Japan as politics hinders debt plan Posted: TOKYO (Reuters) - Fitch cut Japan's sovereign credit status on Tuesday to the lowest level among global ratings agencies as a political stalemate dims the chance that the country can curb its snowballing debt. Fitch Ratings cut Japan's long-term foreign currency rating by two levels from AA to A plus, the fifth highest investment grade. It cut the more important local currency rating by one notch from AA minus to A plus. Both were given a negative outlook. ... |
| Tesco boss forgoes bonus after poor UK results Posted:  LONDON (Reuters) - Tesco boss Philip Clarke has passed up an annual bonus of about 372,000 pounds ($588,000) after the retailer's poor performance in its main British market, heading off a potential outcry by investors increasingly critical of executive pay. The chief executive was paid a basic salary of over 1 million pounds last year and was awarded share options worth 2.7 million pounds during his first year on the job, according to the company's annual report. ...
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| FINRA fines Citigroup Global Markets $3.5 million Posted:  (Reuters) - The Financial Industry Regulatory Authority (FINRA) has fined Citigroup Global Markets $3.5 million for providing inaccurate information related to subprime securitizations. The brokerage and securities arm of Citigroup posted inaccurate mortgage performance data on its website from January 2006 to October 2007, the regulator said in a statement, adding that the data remained on the website until this month. ...
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| Best Buy results top estimates; outlook maintained Posted:  NEW YORK (Reuters) - Best Buy Co Inc reported better-than-expected quarterly results and maintained its outlook for the year as a turnaround plan started to take hold, sending shares in the world's largest consumer electronics chain up more nearly 4 percent. The stronger results eased concerns about the future of the retailer after Chief Executive Brian Dunn resigned abruptly last month amid a probe into allegations of personal misconduct. Critics are also worried that Best Buy is serving as a showroom for Amazon.com Inc and other online retailers. ...
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| General Mills to cut about 850 jobs globally Posted: (Reuters) - General Mills Inc will cut about 850 jobs, or 2.4 percent of its workforce, and take other restructuring measures to support growth, the company said on Tuesday. The company, which has been facing higher costs of raw materials, will record total restructuring charges of about $109 million pretax, including about $94 million in the fourth quarter ending on May 27. The remaining costs will be recorded in fiscal 2013, General Mills said. ... |
| India faces mass default and restructuring as devaluation looms Posted:  SINGAPORE, May 22 (IFR) - India's mounting economic and political woes are prompting market players to raise the specter of a Greek-style crisis in Asia's third largest economy. This is not simply idle speculation. Last Friday, the rupee crashed to an all-time low against the dollar of 54.9 and it was stuck most of Tuesday at the psychologically significant Rs55/USD level, where the currency is seen as having no obvious technical support. And the implications of a rupee collapse would be immense. ...
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| FDA staff shoots down Pfizer rare disease drug Posted:  WASHINGTON (Reuters) - Drug reviewers on Tuesday recommended rejecting a Pfizer Inc drug because the data did not prove it worked well in treating a rare neurodegenerative disease. The U.S. Food and Drug Administration staff reviewed the pill, tafamidis, ahead of an advisory panel of outside experts, which on Thursday will vote on whether to recommend it for approval. The FDA will make a final decision later, taking into account the panel's recommendation. ...
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| General Mills to cut about 850 jobs globally Posted: (Reuters) - General Mills Inc said it will cut some 850 jobs worldwide and take other restructuring measures to support growth, the company said on Tuesday. The company will record total restructuring charges of about $109 million pre-tax, some $94 million of which will be recorded in the fourth quarter. The remaining costs will be recorded in fiscal 2013, General Mills said. The company has been battling higher costs of raw materials. The maker of Progresso soups, Cheerios cereal and Green Giant vegetables saw third-quarter net income fall to $391. ... |
| Insight: Morgan Stanley cut Facebook estimates just before IPO Posted:  (Reuters) - In the run-up to Facebook's $16 billion IPO, Morgan Stanley, the lead underwriter on the deal, unexpectedly delivered some negative news to major clients: The bank's consumer Internet analyst, Scott Devitt, was reducing his revenue forecasts for the company. The sudden caution very close to the huge initial public offering, and while an investor roadshow was underway, was a big shock to some, said two investors who were advised of the revised forecast. ...
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| Citigroup says cautious on U.S. small-, mid-cap cos Posted:  (Reuters) - Citigroup said it has a cautious view on the U.S. small-and mid-cap companies on concerns over earnings pressure in the second half amid the euro zone crisis and the political uncertainty in the United States. Analyst Scott Chronert downgraded the small and mid-cap technology sector to "market weight", saying expectations for margin improvement for the group may be tough to meet even as valuations remain attractive. Chronert upgraded the health care and utilities sectors to "overweight" on valuation. ...
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| Vodafone makes writedown on European weakness Posted:  LONDON (Reuters) - Mobile operator Vodafone made a writedown of 4 billion pounds ($6.3 billion) and cut its medium-term sales target as the debt crisis squeezed customers in southern Europe, forcing them to save money on phone calls. Vodafone posted full-year results in line with forecasts and stood out from its peers by promising another strong dividend as strength in emerging markets and Germany, Britain and Turkey offset a slump in spending in Spain and Italy. ...
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| Glencore takes control of Mutanda with $480 million deal Posted:  LONDON (Reuters) - Commodities trader Glencore has taken majority control of its fast-growing Mutanda copper operation in Congo with deals worth $480 million, marking the first step in a planned merger of the mine with its nearby Kansuki concession. Mutanda, in central Africa's copper belt, is one of Glencore's main growth assets and a key operation in the Democratic Republic of Congo alongside its Katanga asset, largely thanks to its high ore grades and low expansion costs. ...
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| Nissan aiming for 10 percent of China luxury car market Posted:  HONG KONG/BEIJING (Reuters) - Nissan Motor Co Ltd said it aims to triple global sales of its premium Infiniti brand by 2016 and take 10 percent of China's luxury vehicle market, challenging leaders like Audi AG and Mercedes Benz maker Daimler AG. Infiniti on Tuesday became the first global car brand to open a headquarters in Hong Kong, but it is viewed as a latecomer to China with production there planned to start in 2014. Infiniti currently has about 3 percent of China's luxury vehicle market. ...
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| Apple still dominates world's top brands: study Posted:  (Reuters) - Apple has maintained its place as the world's most valuable brand over the past year, leading a group of technology-related companies that dominate the top 10, according to a study published on Tuesday. The iPhone and iPad maker has boosted its brand value by 19 percent in the past year to $183 billion, or 37 percent of its market capitalization, according to the annual BrandZ study by leading brands and market-research agency Millward Brown. ...
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| Ex-Yahoo director, fund manager made illegal trades: U.S. Posted:  (Reuters) - Federal prosecutors on Monday announced insider trading charges against a former Yahoo employee and a fund manager for illegally sharing and trading on secret company information. The pair pleaded guilty in Manhattan federal court on Monday, the Manhattan U.S. Attorney's office said in a press release. They were also charged by U.S. securities regulators in a parallel civil proceeding. The SEC said it is pursuing a civil settlement with the two. ...
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| Tesco CEO turns down $590,000 bonus Posted:  LONDON (Reuters) - Tesco boss Philip Clarke has opted not to take an annual bonus of about 372,000 pounds ($588,000) following a poor performance by the world's third-biggest retailer in its main British market. Shares in Tesco, which issued a shock profit warning in January, have lost almost a quarter of their value this year and the company is now investing about 1 billion pounds in a bid to stem a declining market share in Britain. ...
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| MF Global paid Corzine $8 million in year before collapse Posted:  (Reuters) - Former MF Global Holdings Ltd chief Jon Corzine received more than $8 million in pay and stock options from the futures brokerage in the year before it went bankrupt. Corzine's pay along with that of other former MF Global executives was listed in a court document filed on Friday by Louis Freeh, the trustee unwinding the company's bankrupt estate. Corzine, a former Goldman Sachs chief and New Jersey governor, was paid $3 million in cash, the filing showed, as well as $5.35 million in stock options, which are likely now worthless. ...
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| Departures leave Dewey a shell of its former self Posted:  NEW YORK (Reuters) - Seventeen more partners at Dewey & LeBoeuf announced their departure on Monday, as the failing law firm considered filing for bankruptcy. Rival law firm Proskauer Rose said it was bringing in four partners, including Ralph Ferrara, a vice chairman at Dewey and former general counsel of the U.S. Securities and Exchange Commission. Duane Morris, another law firm, said it was hiring 16 lawyers from Dewey, including six of its partners. ...
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| China targets infrastructure to lift economy, report says Posted:  BEIJING/SHANGHAI (Reuters) - China will fast track approvals for infrastructure investment to combat a slowdown in the economy, a state-backed newspaper reported on Tuesday, showing how Premier Wen Jiabao's call for policies to support growth is being put into action. The pace of investment in the likes of roads, bridges and real estate is running at its weakest in nearly a decade, April data showed, suggesting the world's second-biggest economy is heading for a sixth straight quarter of slowing growth. ...
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| Jailed Enron's Skilling seeks new trial, cites new evidence Posted:  (Reuters) - Jailed former Enron Corp. Chief Executive Officer Jeffrey Skilling is seeking a new trial citing "newly discovered evidence," according to court documents. Skilling was convicted in 2006 on charges including conspiracy and securities fraud in relation to the 2001 collapse of the one-time energy trading giant Enron. The 58-year-old is now serving a 24-year jail term. Skilling attorney Daniel Petrocelli has asked a judge for more time to file a "motion for a new trial based on newly discovered evidence", according to court filings last week in Houston federal court. ...
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| Premier inspects quake-hit Italian factories Posted:  The government approved some temporary tax relief to owners of property damaged in the quake-struck north Tuesday, as the premier promised swift help for small-scale businesses in the region — one of Italy's more productive.
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| Israeli solar firm raises $200 million Posted: An Israeli solar company says it has raised more than $200 million to build eight solar energy fields in the country's southern desert. |
| Stocks turn higher after housing report Posted:  An encouraging report on the housing market is pushing most stocks higher, while Facebook takes another fall.
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| Romney's playbook on Bain unclear as attacks grow Posted:  The core of his presidential candidacy under attack, Mitt Romney has yet to shape a playbook to defend a quarter-century in the business world that created great riches for him and great hardship, at times, for some American workers.
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| Best Buy profit falls, adj. earns tops Street view Posted:  Best Buy Co. said Tuesday that its fiscal first-quarter profit dropped 26 percent on restructuring charges as the struggling electronics retailer began implementing a turnaround plan.
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| SEC reviewing JPMorgan's filings after $2B loss Posted: Federal regulators are reviewing what JPMorgan Chase told investors about its finances and the risks it took weeks before suffering a multibillion-dollar trading loss. |
| Motel 6 being sold to private group for $1.9B Posted: Accor says it has agreed to sell Motel 6 and another North American economy hotel brand to an affiliate of The Blackstone Group for $1.9 billion. |
| ICANN resumes bids for new Internet suffixes Posted: The organization overseeing a major expansion of Internet addresses has reopened its system for letting companies and organizations submit proposals. |
| Eurozone warned 'severe recession' looming Posted:  The 17-country eurozone risks falling into a "severe recession," the Organization for Economic Cooperation and Development warned on Tuesday, as it called on governments and Europe's central bank to act quickly to keep the slowdown from dragging down the global economy.
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| Revived focus on regulation after JPMorgan loss Posted: Federal regulators and lawmakers are renewing the focus on financial regulation in the wake of a multibillion-dollar trading loss at JPMorgan Chase & Co. |
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