| Wall Street gains on data; euro zone caution remains Posted: 27 Jun 2012 09:21 AM PDT  NEW YORK (Reuters) - Stocks rose on Wednesday on upbeat economic data, but concerns about the pace of the recovery and expectations that another meeting of European leaders would do little to solve the region's debt crisis kept gains vulnerable. Demand for long-lasting manufactured goods rose sharply more than expected in May and contracts to buy homes on resale matched a two-year high. The PHLX housing sector index rose 3.6 percent, taking the year-to-day gains to near 26 percent. Shares of Lennar Corp rose 4.7 percent to $28.69 after the U.S. ...
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| Barclays pays $453 million fine to settle Libor probe Posted: 27 Jun 2012 07:58 AM PDT  WASHINGTON/LONDON (Reuters) - British bank Barclays will pay at least $450 million to U.S. and British authorities to settle a probe into manipulation of the key interbank lending rate known as Libor. Regulators have been investigating allegations that several banks, including Barclays, manipulated the London Interbank Lending Rate (Libor), which underpins trillions of dollars of derivatives contracts worldwide and is also widely used as a reference rate for corporate lending. ...
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| Durable goods orders rise, weakness persists Posted: 27 Jun 2012 08:05 AM PDT  WASHINGTON (Reuters) - Demand for long-lasting U.S. manufactured goods rebounded more than expected in May and a gauge of planned business spending increased, but a slowing of growth in the global economy suggests the momentum might not be sustained. China's slowdown and a looming recession in the euro zone have taken some of the shine off the U.S. manufacturing sector, leaving the economy stuck in a soft patch. Despite the 1. ...
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| Exxon CEO says hopes Mexico extends oil reforms Posted: 27 Jun 2012 08:55 AM PDT  NEW YORK (Reuters) - Exxon Mobil would be interested in investing in Mexico's oil and gas sector, but only if the Mexican government allows the company to own some energy reserves, its chief executive said on Wednesday. "We're not real keen on service contracts, we're not real keen on fixed margin contracts. Although we have some of those, they're not particularly great for us," Exxon Mobil CEO Rex Tillerson told reporters after a speech. Mexico's constitution bars outside exploitation of the country's oil resources, making joint ventures or profit sharing with private companies difficult. ...
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| ECB lays ground for rate cut, impact could be minor Posted: 27 Jun 2012 08:30 AM PDT BERLIN/FRANKFURT (Reuters) - There is nothing to stop the European Central Bank cutting interest rates further, a senior policymaker said on Wednesday, adding to expectations it could act as soon as next week to counter dimming growth prospects and help tackle the euro zone crisis. Executive Board member Peter Praet's intervention followed his colleague Benoit Coeure, who said last week cutting rates was an option and one that would be discussed at the ECB's July 5 meeting. ... |
| Merkel rebuffs pleas for debt action on summit eve Posted: 27 Jun 2012 09:13 AM PDT  BERLIN/MADRID (Reuters) - On the eve of a crucial summit that could determine the future of the euro zone, German Chancellor Angela Merkel brushed aside increasingly shrill calls from Spain and Italy on Wednesday for emergency action to lower their soaring borrowing costs. European Union leaders go into the two-day meeting beginning on Thursday evening more openly divided than at any time since a still-widening debt crisis erupted in early 2010 after Greece revealed its deficit and debt were far higher than reported. ...
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| Wall Street likes, doesn't love, Facebook Posted: 27 Jun 2012 08:16 AM PDT  SAN FRANCISCO (Reuters) - Facebook Inc drew tepid assessments from Wall Street's top analysts a month after its rocky stock market debut, as warnings about an uncertain business model and a difficult transition to mobile helped send its shares down 1 percent. In more than a dozen highly anticipated reports, Morgan Stanley and other major brokerages that handled the blockbuster IPO said it remains unclear how Facebook plans to make money from a growing number of users logging onto the No. 1 social network via smartphones and tablets. ...
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| Porsche plaintiffs suffer setback to $5 billion claims Posted: 27 Jun 2012 08:20 AM PDT  BERLIN (Reuters) - Investors suing Porsche SE over its botched 2008 takeover of Volkswagen suffered a setback to claims for more than 4 billion euros ($4.99 billion) of damages as German court hearings on Wednesday exposed initial cases as sketchy. Swiss investment company My Capital-MC and a German private investor, seeking compensation for 4.7 million euros of losses from short-selling VW shares in a bet that the price would fall, have yet to convince German judges of Porsche's wrongdoings. ...
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| Glencore fights to save $26 billion Xstrata bid Posted: 27 Jun 2012 09:25 AM PDT  LONDON (Reuters) - Commodities trader Glencore fought to save its $26 billion bid for miner Xstrata on Wednesday after shareholder Qatar stunned the pair with a late demand for better terms, forcing them to push back the timing of the deal. The Qatari intervention pushed the deal to the brink as it prompted a string of major shareholders to revisit their own concerns, such as soaring executive pay and fears that the combined entity would take on riskier business. Qatar had remained silent for months as it built the second-largest stake in Xstrata, before calling late on Tuesday for 3. ...
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| Exxon CEO says low U.S. natgas prices not sustainable Posted: 27 Jun 2012 08:09 AM PDT (Reuters) - U.S. natural gas prices are too low to allow the energy industry to cover the cost of finding and producing new supplies, the head of top producer Exxon Mobil said on Wednesday. Record production, thanks to new technologies that tap natural gas trapped in shale rock formations, pushed U.S. natural gas prices to 10-year lows below $2 per million British thermal units (mmBtu) in April, though prices have since rebounded. "The cost of supply is not $2.50. ... |
| JPMorgan Chase puts new payment devices in stores Posted: 27 Jun 2012 05:03 AM PDT  NEW YORK (Reuters) - JPMorgan Chase & Co said on Wednesday it has begun equipping merchants with devices that accept payments from mobile phone signals and cards embedded with computer chips as well as traditional magnetic strips. Chase is trying to protect a key part of its credit card business and speed up use in the United States of mobile phone payments and cards with chips that are in widespread use in Europe and more secure than cards with magnetic strips. JPMorgan Chase ranked fourth in card processing for U.S. merchants in 2011, with 11.6 percent of the market. It handled 8. ...
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| Exclusive: Venezuela wants OPEC price band restored Posted: 27 Jun 2012 08:29 AM PDT  CARACAS (Reuters) - Venezuela on Wednesday proposed that OPEC set an oil price band of $80 to $120 a barrel, Energy Minister Rafael Ramirez told Reuters, bidding to restore a policy the cartel tried 12 years ago in a failed attempt to control prices in a tight range by adjusting supply. The Organization of the Petroleum Exporting Countries in 2000 adopted a $22 to $28 price band, requiring its members to cut or raise output in an effort to keep prices in that range for an OPEC basket of crudes. ...
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| Fewer troubled mortgages hobble banks in first quarter Posted: 27 Jun 2012 07:48 AM PDT WASHINGTON (Reuters) - U.S. banks held fewer troubled mortgages in the first quarter of 2012, according to a report issued on Wednesday by the Office of the Comptroller of the Currency, as loans serviced by national banks performed better in the first three months of the year. The report said the overall quality of serviced mortgages improved, and the percentage of serviced loans that were current and performing at the end of March was 88.9 percent, the highest level in three years. ... |
| Shenzhen's "mini-Hong Kong" to test China's financial ambitions Posted: 27 Jun 2012 08:06 AM PDT  SHENZHEN/HONG KONG (Reuters) - China's southern boomtown of Shenzhen, a pioneer of economic reforms but long in the shadow of Hong Kong, is plotting another bold ploy: a $45 billion 'mini-Hong Kong' to return it to the limelight and aid China's rise as a financial power. On a barren stretch of reclaimed land in western Shenzhen and near the Hong Kong border, China wants to build another financial services hub from scratch in the Qianhai Bay economic zone, offering the low taxes, rigorous legal regime and anticorruption vigilance enjoyed by its affluent neighbor. ...
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| Pending home sales match two-year high Posted: 27 Jun 2012 07:15 AM PDT  WASHINGTON (Reuters) - Contracts to purchase previously owned U.S. homes matched a two-year high in May, fueling optimism the housing market is poised for a recovery. The National Association of Realtors said on Wednesday its Pending Home Sales Index, based on contracts signed last month, rose 5.9 percent to 101.1. The index level matched the two-year high reached in March, while the gain was the largest since October 2011. ...
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| Microsoft loses EU battle, fine trimmed by 4.3 percent Posted: 27 Jun 2012 07:44 AM PDT  LUXEMBOURG (Reuters) - Microsoft Corp lost its appeal against an EU decision penalizing it for defying an antitrust ruling, bringing nearer to an end a decade-long battle with the European Commission over the U.S. software group's business practices. Antitrust experts said the verdict by the General Court, Europe's second-highest, may strengthen the Commission's hand in ongoing cases against Google, Samsung Electronics and Motorola Mobility related to their patents. Judges at the General Court reduced Microsoft's fine by 4.3 percent to 860 million euros ($1. ...
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| Merck, Astra keep drug alliance for two more years Posted: 27 Jun 2012 06:26 AM PDT  (Reuters) - Merck & Co will keep booking sales and profits for two more years tied to AstraZeneca Plc's widely used acid reflux medicines Nexium and Prilosec under an amended agreement between the two large drugmakers. Merck previously assumed it would record contributions from the longstanding partnership only through September this year. Now the alliance will last until 2014, when AstraZeneca will have the option of buying Merck's interest in the partnership. ...
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| World Bank's Zoellick to join policy think tanks Posted: 27 Jun 2012 06:11 AM PDT  WASHINGTON (Reuters) - Outgoing World Bank chief Robert Zoellick said on Wednesday he will join think tanks at Harvard University and in Washington when he steps down from the global development institution at the end of this week. Zoellick said in a statement he will join the Belfer Center for Science and International Affairs at Harvard University and the Peterson Institute for International Economics in Washington when he leaves the bank at the end of his five-year term on June 30. ...
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| Citi cuts retailers on lower high-end consumer spend Posted: 27 Jun 2012 06:08 AM PDT (Reuters) - Citi Investment Research & Analysis downgraded retailers Macy's Inc , Nordstrom Inc and Saks Inc to "neutral" from "buy," citing contraction in spending by high-end consumers. April-May comparable sales at high-end department stores fell 3 to 4 percentage points from a year earlier, Citi said. Confidence among high-end consumers slowed to 80.7 in May from 86.0 in April, the brokerage wrote in a note. High-income consumers, who account for about half of spending in the United States, will likely be hurt by a volatile stock market, it added. ... |
| RBC cuts P&G, not convinced by turnaround plan Posted: 27 Jun 2012 06:02 AM PDT  (Reuters) - RBC Capital Markets downgraded Procter & Gamble Co to "sector perform" from "outperform," expressing doubts over the management's ability to execute a recent plan to cut costs and drive growth for its key businesses. The downgrade comes after the world's largest household products maker lowered its growth forecasts last week for the second time in two months and unveiled plans to cut costs and focus on its core businesses. ...
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| BMW and Toyota extend technology ties -sources Posted: 27 Jun 2012 05:14 AM PDT MUNICH/HAMBURG (Reuters) - BMW and Toyota plan to expand a technological partnership, two sources close to the companies told Reuters, a deal that could prompt a shift in auto industry allegiances. The agreement will be extended to include hybrid powertrains and lightweight design, the sources said on Wednesday. BMW has primarily preferred France's PSA Peugeot Citroen as a partner when it comes to reducing development and production costs. But the cash-strapped French have recently sought savings through an alliance with General Motors . ... |
| Analysis: Morgan Stanley faces Facebook fallout, limits damage Posted: 27 Jun 2012 05:52 AM PDT NEW YORK (Reuters) - Morgan Stanley was quick to dismiss suggestions its status as the king of initial public offerings for Silicon Valley was under threat because of the botched Facebook Inc IPO last month. And that confidence may be warranted. While Morgan Stanley has been snubbed by some technology companies, the repercussions for the Wall Street investment bank have been limited, according to sources familiar with the situation. ... |
| Mortgage applications fell last week: MBA Posted: 27 Jun 2012 04:57 AM PDT  NEW YORK (Reuters) - Applications for U.S. home mortgages fell last week as refinancing applications for government loans slowed, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 7.1 percent in the week ended June 22. The MBA's seasonally adjusted index of refinancing applications decreased by 8.3 percent, while the gauge of loan requests for home purchases, a leading indicator of home sales, fell by 1.4 percent. ...
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| EU, U.S., Japan seek further WTO steps over China rare earths Posted: 27 Jun 2012 06:30 AM PDT  BRUSSELS (Reuters) - The European Union, the United States and Japan on Wednesday requested a dispute settlement panel at the World Trade Organization (WTO) after failing to resolve a battle over China's export restrictions on rare earth minerals. The move followed a complaint the three trade powers took to the WTO in March, the first they have launched jointly, and comes amid a series of clashes with China over economic issues, including the value of the Chinese currency. ...
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| Analysis: Is the euro beyond salvation? Politics not economics to decide Posted: 27 Jun 2012 03:52 AM PDT  LONDON (Reuters)- Here's a nightmare for Europe's leaders to ponder as they prepare for yet another summit to tackle the euro zone crisis: a bond auction fails in Spain, spreading solvency worries to Italy and beyond and triggering uncontrollable bank runs that spell the single currency's end. Is such a scenario likely? Policymakers hope not. Is it possible? They fear it might be. What is beyond dispute is that more and more economists and academics are asking whether the euro's problems are so deep-rooted that the currency is beyond salvation. ...
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| Tepco shareholders OK $12.6 billion government injection Posted: 27 Jun 2012 03:39 AM PDT  TOKYO (Reuters) - Tokyo Electric Power Co shareholders voted on Wednesday to approve the Japanese government's 1 trillion yen ($12.58 billion) capital injection, to avert the collapse of the utility in the aftermath of the Fukushima nuclear crisis. The capital injection will hand control of Tepco to the government and brings total state support for the company to at least 3.5 trillion yen since reactor meltdowns at the Fukushima Daiichi plant triggered by last year's earthquake and tsunami. ...
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| Lennar orders up 40 percent, sees steady housing recovery Posted: 27 Jun 2012 04:14 AM PDT  (Reuters) - Lennar Corp reported a rise in new orders for the fifth straight quarter and said a slow and steady recovery was underway in the housing market. Lennar, the largest U.S. homebuilder behind D.R. Horton and PulteGroup Inc , also reported second-quarter earnings and revenue ahead of market estimates. Miami-based Lennar said new orders jumped 40 percent to 4,481 homes. Orders are a key indicator for builders, which do not book revenue until they close on a house. "We are experiencing net positive price and volume trends in most of our markets," Chief Executive Stuart Miller said. ...
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| Whitefox to appeal against Tate & Lyle's U.S. court win Posted: 27 Jun 2012 01:59 AM PDT LONDON (Reuters) - British group Whitefox Technologies is to appeal against a U.S. court ruling made against it in a dispute with Tate & Lyle which an analyst said could win the London-based sweeteners and starch company over 10 million pounds ($16 million). The trial before the Supreme Court of the State of New York related to equipment and technologies supplied by Whitefox for use in Tate's U.S. ethanol plants at Loudon in Tennessee and Fort Dodge in Iowa which Tate claimed were not fit for purpose. "We are very surprised and disappointed at this verdict and we will be pursuing an appeal. ... |
| Porsche investors to push $5 billion damage claims Posted: 27 Jun 2012 12:03 AM PDT  BERLIN (Reuters) - Investors claiming Porsche SE misled them about plans to take over Volkswagen in 2008, will take to German courtrooms on Wednesday for the first time, pushing demands for more than 4 billion euros ($5 billion) in damages. A regional court in northern town Brunswick will open hearings on four lawsuits at 0900 GMT. A fifth case, brought by Elliott Associates and other U.S. investment funds and accounting for 2 billion euros of damages alone, has yet to be scheduled. ...
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| China first-half growth seen over 7.5 percent, but pressures remain Posted: 26 Jun 2012 11:39 PM PDT  BEIJING (Reuters) - China's annual economic growth could exceed 7.5 percent in the first half of 2012 but the economy still faces growing downward pressure, a senior official with the industry ministry said in remarks published on Wednesday. Analysts forecast in a Reuters poll in May that China would deliver second-quarter economic growth of 7.9 percent from a year earlier, with full-year growth of 8.2 percent, which would be the lowest since 1999. ...
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| European court upholds most of Microsoft fine Posted: 27 Jun 2012 09:23 AM PDT  A European court on Wednesday upheld most of a massive fine levied against Microsoft by the European Commission's competition watchdog, closing a case against the software giant that began in 1998.
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| Facebook slides as underwriters issue ratings Posted: 27 Jun 2012 09:22 AM PDT The Wall Street analysts who know Facebook best are giving the company's stock a mixed review. Think: like, not love. |
| Boehner says deal near on student loans, highways Posted: 27 Jun 2012 09:07 AM PDT  Congress is nearing agreements that would prevent a doubling of student loan interest rates and revamp the nation's transportation programs, House Speaker John Boehner said Wednesday. If completed, the compromises would resolve two vexing issues on which lawmakers face weekend deadlines for action.
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| Contracts to buy US homes rise, match 2-year high Posted: 27 Jun 2012 09:04 AM PDT  Americans signed more contracts to buy previously occupied homes in May, matching the fastest pace in two years. The increase suggests consumers are gaining confidence in the housing market and a modest recovery will continue.
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| Barclays to pay $450M in rate-manipulation case Posted: 27 Jun 2012 08:59 AM PDT Barclays PLC and its subsidiaries will pay more than $450 million to settle charges that they tried to manipulate interest rates that can affect how much people pay for loans to attend college or buy a house. |
| Stocks rise on stronger US housing, factory data Posted: 27 Jun 2012 08:56 AM PDT  A rare double shot of good news about the U.S. economy sent stocks strongly higher Tuesday. The Dow Jones industrial average rose 82 points despite lingering fear about Europe's debt turmoil.
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| Merkel: no quick solution to crisis Posted: 27 Jun 2012 08:51 AM PDT  German Chancellor Angela Merkel on Wednesday brushed aside the latest push to pool European debt, arguing that it would be "economically wrong and counterproductive" to make such a move before governments can be made to comply with budget rules.
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| Google likely to unveil small tablet at show Posted: 27 Jun 2012 08:46 AM PDT A small tablet computer bearing Google's brand is expected Wednesday. |
| Oil rises on better US manufacturing, housing data Posted: 27 Jun 2012 08:30 AM PDT The price of oil is climbing on upbeat reports about the U.S. economy |
| Glencore, Xstrata agree merger deal changes Posted: 27 Jun 2012 08:20 AM PDT  Commodities trader Glencore International and takeover target Xstrata said Wednesday they have agreed on revised terms for paying retention bonuses for Xstrata executives, an issue which had stirred some shareholder opposition to the deal.
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