| Wall Street little changed as Fed, ECB awaited Posted: 31 Jul 2012 07:28 AM PDT  NEW YORK (Reuters) - Stocks were little changed on Tuesday as investors held off making big bets before the conclusion of the Federal Reserve's two-day policy meeting, which may result in additional action to stimulate the economy. Equities in the United States and Europe have rallied recently, with U.S. stocks mostly flat on Monday as investors paused following the best two-day run this year, on increased expectations both the Fed and the European Central Bank will plan further actions to stimulate their respective economies at meetings this week. ...
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| Consumer confidence rises in July Posted: 31 Jul 2012 07:05 AM PDT  NEW YORK (Reuters) - Consumer confidence unexpectedly rose in July as Americans were more optimistic about the short-term outlook than they were about their current conditions, according to a private sector report released on Tuesday. The Conference Board, an industry group, said its index of consumer attitudes climbed to 65.9 from a upwardly revised 62.7 in June, topping economists' expectations for a decline to 61.5. June was originally reported as 62.0. ...
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| Rising home prices show traction in housing recovery Posted: 31 Jul 2012 08:24 AM PDT  NEW YORK/WASHINGTON (Reuters) - Home prices rose for the fourth month in a row in May, suggesting the recovery in the housing market continued to gain traction. In other data on Tuesday, consumer confidence unexpectedly rose in July but spending fell in June for the first time in nearly a year when accounting for inflation. The S&P/Case Shiller composite index of 20 metropolitan areas gained 0.9 percent in May on a seasonally adjusted basis, topping economists' expectations for a 0.5 percent gain. ...
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| Pfizer beats Street; looks past animal health IPO Posted: 31 Jul 2012 07:35 AM PDT  (Reuters) - Pfizer Inc reported higher-than-expected quarterly earnings on Tuesday, due largely to lower spending on research and marketing, and said it may fully divest its animal health unit following an initial public offering of up to 20 percent of the business. Atlantic Equities analyst Richard Purkiss said Pfizer's operating profit margins improved four percentage points beyond expectations in the second quarter, helped by cost cuts related to its $67 billion acquisition in October 2009 of U.S. rival Wyeth. ...
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| Record joblessness in euro zone; hope fades for quick ECB cure Posted: 31 Jul 2012 09:00 AM PDT  ROME/FRANKFURT (Reuters) - Joblessness in the euro zone hit on Tuesday its highest level since the single currency was born, a further sign of economic desperation as hopes erode that the bloc will be saved by its central bank this week. An additional 123,000 people were out of work in the euro zone in June, figures from Eurostat showed, bringing the unemployment rate to a record high 11.2 percent across the 17 countries that use the single currency. The rate hides wide divergences, with unemployment as low as 4.5 percent in Austria and as high as 24. ...
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| India central bank holds rates steady, ups inflation forecast Posted: 31 Jul 2012 07:32 AM PDT  MUMBAI (Reuters) - India's central bank left interest rates unchanged on Tuesday for the second straight review, showing that bringing down stubbornly high inflation is its top priority even as economic conditions deteriorate. Underlining its policy dilemma as it faces pressure to reduce rates, the Reserve Bank of India (RBI) cut its economic growth forecast for the fiscal year to March 2013, while at the same time raising its inflation forecast. The RBI left its policy repo rate at 8 percent and cash reserve ratio for banks at 4.75 percent. ...
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| Deutsche Bank to slash 1,900 jobs to save $3.67 billion Posted: 31 Jul 2012 05:15 AM PDT  FRANKFURT (Reuters) - Deutsche Bank said it will slash 1,900 jobs in an effort to achieve cost savings of about 3 billion euros ($3.67 billion) as part of a broader strategic overhaul unveiled by the bank's new chiefs on Tuesday. The bank will reduce headcount in corporate banking and securities by 1,500 and cut jobs mainly outside of Germany. It comes in response to a slowdown in financial market activity. ...
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| India's April-June fiscal deficit at $34.22 billion: government Posted: 31 Jul 2012 04:25 AM PDT  NEW DELHI (Reuters) - India's fiscal deficit during the April-June period rose to 1.9 trillion rupees ($34.22 billion), or 37.1 percent of the full fiscal year 2012/13, government data showed on Tuesday. During the same period in the last fiscal year, the deficit was 39.4 percent of the budget target. Net tax receipts during April-June stood at 1.05 trillion rupees and the total expenditure was 3.1 trillion rupees. In March, the government had budgeted a fiscal deficit of $5.14 trillion rupees or 5.1 percent of the gross domestic product (GDP) for the current fiscal year. ...
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| BP results show strain of Russia, U.S. spill Posted: 31 Jul 2012 05:26 AM PDT  LONDON (Reuters) - BP Plc cemented its status as problem child among the world's top oil companies on Tuesday with unexpectedly weak quarterly results, slashing $5 billion off the value of its U.S. assets and undershooting forecasts at operating level. The British oil company, struggling under the weight of litigation over the 2010 U.S. Gulf oil spill and a row with its Russian partners, said both oil production and refining margins fell in the second quarter and would fall again in the third. ...
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| Porsche SE profit rises ahead of Volkswagen tie-up Posted: 31 Jul 2012 07:11 AM PDT  BERLIN (Reuters) - Germany's Porsche SE and Volkswagen complete their long-awaited tie-up on Wednesday and analysts see big potential in the move for both companies. On Tuesday Porsche SE posted a six-month profit of 1.15 billion euros ($1.41 billion), against 149 million euros a year earlier. Porsche said it expects net income to be in the "high" single-digit billions of euros this year, including one-time gains from combining with VW. ...
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| GE Vice Chairman Krenicki to join private equity firm Posted: 31 Jul 2012 06:07 AM PDT  (Reuters) - General Electric Co Vice Chairman John Krenicki will join Clayton, Dubilier & Rice at the end of the year, the private equity firm said on Tuesday. Krenicki will serve as an operating partner at Clayton, Dubilier & Rice, a role where he will work on boosting growth at businesses the firm invests in. He will be joining a company that counts former GE CEO Jack Welch and current GE director and former Procter & Gamble Co CEO Alan Lafley as top advisers. ...
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| Home prices rise for fourth month in May: S&P Posted: 31 Jul 2012 06:59 AM PDT  NEW YORK (Reuters) - Single-family home prices rose for the fourth month in a row in May on a seasonally adjusted basis, suggesting the recovery in the housing market continued to gain traction, a closely watched survey showed on Tuesday. The S&P/Case-Shiller composite index of 20 metropolitan areas gained 0.9 percent in May on a seasonally adjusted basis, topping economists' expectations for a 0.5 percent gain. On a non-seasonally adjusted basis, prices fared even better, jumping 2.2 percent. ...
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| Employment costs up modestly in second quarter Posted: 31 Jul 2012 05:45 AM PDT  WASHINGTON (Reuters) - Labor costs rose moderately in the second quarter, according to government data on Tuesday that underscored benign wage inflation against the backdrop of a weak jobs market. The Employment Cost Index, which measures total employer compensation costs, increased 0.5 percent after rising 0.4 percent in the first three months of the year, the Labor Department said. The increase was in line with economists' expectations. Over 12 months, compensation costs rose a moderate 1.7 percent, slowing from a 1.9 percent rise in the 12 months through March. ...
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| Terumo sues Olympus over lost shareholder value Posted: 31 Jul 2012 05:54 AM PDT  TOKYO (Reuters) - Japan's Terumo Corp said on Tuesday it had filed a lawsuit against Olympus Corp , seeking damages for lost shareholder value, and escalating a tussle with the endoscope maker over a tie-up proposal. Terumo, a medical device maker which holds a 2.5 percent stake in Olympus, announced last week a proposal to invest 50 billion yen ($640 million) in cash-strapped Olympus. The unusual step of going public with the proposal had appeared to be a bid to rally shareholder support behind it against rival offers from the likes of Sony Corp and Fujifilm Holdings . ...
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| China swings into capital account deficit in second quarter Posted: 31 Jul 2012 04:41 AM PDT  BEIJING (Reuters) - China's capital and financial account swung into a deficit of $71.4 billion from a surplus of $56.1 billion in the first quarter as domestic firms and residents increased their holdings of foreign currencies amid the global turbulence, the nation's foreign exchange regulator said on Tuesday. China has suffered sporadic capital outflows since late last year as choppy global markets have spooked investors and led them to pull funds from the country. ...
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| Credit funds get boost from JP Morgan loss: survey Posted: 31 Jul 2012 03:43 AM PDT  LONDON (Reuters) - The type of hedge funds that bet against JP Morgan and made money from its $5.8 billion "London Whale" trading loss has risen to the top of investors' buying lists for the coming quarter, a survey showed. Of 157 investors polled across the globe, 53 percent said they planned to allocate cash to credit relative value funds in the coming quarter, according to Credit Suisse's mid-year Hedge Fund Investor Survey. This hedge fund strategy seeks to profit from dislocations in fixed income markets, and many have performed well this year after taking advantage of the U.S. ...
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| Manchester United sets IPO terms Posted: 31 Jul 2012 02:23 AM PDT  (Reuters) - English soccer team Manchester United set the terms for its U.S. initial public offering on Monday saying it will offer 16.67 million shares at between $16 and $20 each, which values the club at $3.3 billion at the top of the range. Manchester United has been struggling with a hefty debt burden ever since being acquired by the family of Florida-based businessman Malcolm Glazer and his family in 2005. The club and the Glazers each will be selling half the IPO shares in an offering that will raise as much as $333 million. ...
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| Aetna profit beats estimates; full-year forecast raised Posted: 31 Jul 2012 04:11 AM PDT (Reuters) - Aetna Inc , the third-largest U.S. health insurer, posted weaker quarterly earnings on Tuesday as expenses rose, but the results were still higher than analysts had expected. Aetna also raised its full-year earnings forecast to a range of $5.00 to $5.10 per share, excluding items. Susquehanna Financial Group analyst Chris Rigg attributed the stronger-than-expected results mostly to higher underwriting margins, especially in the Medicare segment. The company also was active in stock repurchases, so the share count was lower, he noted. Second-quarter net earnings were $457. ... |
| GE Vice Chairman Krenicki to join private equity firm Posted: 31 Jul 2012 04:12 AM PDT  NEW YORK (Reuters) - General Electric Vice Chairman John Krenicki will join Clayton, Dubilier & Rice at the end of the year, the private equity firm said on Tuesday. GE said earlier this month it planned to break its energy business into three stand-alone units later this year and that Krenicki, who headed the combined business, would be leaving the company at the end of 2012. Krenicki, 50, has spent 29 years with the Fairfield, Connecticut-based company and in 2007 was named a vice chairman, one of GE's highest ranks. (Reporting By Nick Zieminski in New York; Editing by Maureen Bavdek)
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| Daimler warns of fire risk on 7,200 buses Posted: 31 Jul 2012 04:31 AM PDT BERLIN (Reuters) - German vehicle maker Daimler has alerted buyers of 7,200 buses to a possible defect in some plug connectors which could cause a fire, a company spokeswoman said on Tuesday. The problem at the Mercedes-Benz and Setra brands affects bus models Intouro, Integro and Multiclass, of which Daimler sold about 10,000 between 2006 and 2011, spokeswoman Uta Leitner told Reuters by telephone. She said there was a risk that electric plug connections could corrode, creating the risk of fire, if water leaked into the driver's cabin. ... |
| China to step up policy fine-tuning in second-half: Xinhua Posted: 31 Jul 2012 02:30 AM PDT BEIJING (Reuters) - China will step up policy fine-tuning in the second half to support economic growth, although there are signs of stabilization in the economy, the official Xinhua news agency on Tuesday quoted Premier Wen Jiabao as saying. Wen affirmed the government's resolve to maintain its long-standing controls on the property sector. The government will take steps to improve the domestic investment environment and diversify its export market, Xinhua cited President Hu Jintao as saying. ... |
| GM signs Man United deal day after marketing executive exit Posted: 30 Jul 2012 06:26 PM PDT  DETROIT (Reuters) - The ouster of General Motors Co's global marketing chief is related to a hugely expensive sponsorship deal with England's Manchester United soccer club for which GM is paying twice as much as the team's previous automotive sponsor. On Monday, GM, the biggest U.S. automaker, announced its Chevrolet brand would sponsor the hugely popular club's shirts for the next seven years. ...
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| ECB on course to act strongly or disappoint mightily Posted: 31 Jul 2012 12:36 AM PDT  FRANKFURT (Reuters) - European Central Bank President Mario Draghi must back up his pledge to do what it takes to protect the euro when the bank's policymakers meet on Thursday or else face deep disappointment from investors hungry for - and expecting - immediate action. In his boldest comments to date, Draghi said last week that, within its mandate, the ECB was ready to do whatever it takes to preserve the euro, fuelling expectation the bank could revive its bond purchase program as it did a year ago when it started buying the government debt of Spain and Italy. ...
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| Bond gains prop up Japan banks amid weak loan growth Posted: 31 Jul 2012 02:28 AM PDT  TOKYO (Reuters) - Japan's top banks continued to suffer weak loan demand at home in their financial first quarter and remained heavily dependent on Japanese government bond trading gains amid a worsening outlook for the global economy. Mitsubishi UFJ Financial Group , Japan's No. 1 lender by assets, on Tuesday reported a sharp fall in profit in the April-June period, hurt by the effect of a hefty one-time gain from its stake in Morgan Stanley booked a year earlier, but profit of No. 2 Mizuho Financial Group nearly doubled thanks to hefty returns from its bond portfolio. MUFG, Mizuho and No. ...
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| Analysis: Real estate bouncing back from investor pariah status Posted: 31 Jul 2012 01:39 AM PDT LONDON (Reuters) - Treated by many as a pariah after the U.S. subprime collapse triggered the 2007 global financial crisis, real estate is increasingly back in favor with insurance, pension and sovereign wealth funds. The evaporation of interest rates on high-quality government bonds is encouraging asset managers to look again at prime real estate properties and stocks, where they find returns far outshooting so-called "safe" sovereigns. ... |
| Analysis: Loan cost divide highlights euro zone's problems Posted: 31 Jul 2012 12:04 AM PDT LAPPEENRANTA, Finland/COLMENAREJO, Spain (Reuters) - Saara Merritt is excited. She and her husband have sold their house in a Helsinki suburb and taken out a cheap mortgage to buy a new, more spacious property back in her provincial hometown. At the other end of the euro zone, Daniel Ballestero is desperate. He has tried for months to sell his apartment on the depressed outskirts of Madrid but found no buyer. If anyone can get a mortgage to buy the property, the loan will probably cost twice as much as Saara Merritt's. Their stories reveal a paradox bedeviling the euro zone economy. ... |
| Analysis: Jefferies poised for promotion into metals' top league Posted: 30 Jul 2012 11:03 PM PDT NEW YORK/LONDON (Reuters) - U.S. investment bank Jefferies Group Inc is preparing to make its next big move into the global commodities markets, seeking membership on the London Metals Exchange and snapping up a team of free-agent floor traders from Natixis, according to sources familiar with the moves. One year after buying veteran commodity futures brokerage Prudential Bache, Jefferies is taking advantage of the retreat by European banks that are reining in exposure to capital-intensive commodities as the euro-zone debt crisis deepens. ... |
| Jury selected in Apple, Samsung patent trial Posted: 30 Jul 2012 07:39 PM PDT  SAN JOSE, California (Reuters) - An insurance agent, an unemployed video game enthusiast and a project manager for wireless carrier AT&T were among the 10 jurors selected to decide a high-stakes U.S. patent battle between Apple Inc and Samsung Electronics Co Ltd, with billions of dollars in the balance. U.S. District Judge Lucy Koh on Monday spent several hours examining jurors about their backgrounds and biases, as the companies began the trial after more than a year of pretrial jousting. Opening statements by the lawyers are expected to begin on Tuesday. ...
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| Haute wheels: Fashion takes a cue from food trucks Posted: 31 Jul 2012 09:20 AM PDT The first time the brakes went out in her trailer/store, Joey Wolffer ran a stoplight and worried what would happen to her high-end accessories inside. Two years later, she has a close relationship with a mechanic, knows the best spot to park in New York's Meatpacking district and has a devoted summer following in the Hamptons. |
| Recall news Posted: 31 Jul 2012 08:55 AM PDT The following recall has been announced: |
| Olympics awash in Twitter, for better or worse Posted: 31 Jul 2012 07:41 AM PDT  It's amazing how much trouble can be stirred up in 140 characters or less.
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| Stocks falter in run-up to central bank meetings Posted: 31 Jul 2012 07:24 AM PDT  The stock markets' rally ran aground Tuesday amid doubts over Europe's ability to solve its longer-term financial problems and expectation that the Federal Reserve will not seek to stimulate the U.S. economy further this week.
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| US stocks open mostly lower as Fed meets Posted: 31 Jul 2012 07:22 AM PDT  U.S. stocks opened mostly lower Tuesday ahead of a two-day policy meeting at the Federal Reserve.
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| Fiat earnings slump under poor European sales Posted: 31 Jul 2012 07:15 AM PDT Slumping European sales are hurting Italian carmaker Fiat, which saw second-quarter earnings plummet by 92 percent despite a profit at its U.S. carmaker Chrysler. |
| US consumers more confident in the economy in July Posted: 31 Jul 2012 07:03 AM PDT U.S. consumer confidence rose in July after four months of declines, as a brighter outlook for short-term hiring offset longer-term worries about the economy. |
| France's Total buys stakes in Iraqi Kurdish oil Posted: 31 Jul 2012 06:55 AM PDT Marathon Oil says it has sold an interest in two oil exploration areas in Iraq's northern Kurdish region to French oil giant Total. |
| Italy, France affirm euro support amid crisis Posted: 31 Jul 2012 06:47 AM PDT  The Italian and French leaders are affirming their support for strengthening the eurozone, after a lunch meeting in Paris to discuss the continent's economic crisis.
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| UBS hit by Facebook IPO loss Posted: 31 Jul 2012 06:29 AM PDT  Swiss banking giant UBS AG posted a worse-than-expected 58 percent fall in second-quarter net profits of 425 million francs ($434.16 million) Tuesday, due to losses from the Facebook stock listing and a downturn at its investment banking division.
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