TopNews - Business News

Morgan Stanley to compensate retail investors following Facebook IPO fiasco

Jamie Williamson — Fri, 25 May 2012 11:45:30 +0000

New York, May 23 : Morgan Stanley, the lead investment bank in Facebook''s troubled initial public offering, has confirmed to compensate retail investors, who overpaid when they bought stock in the social network site''s flotation.

According to the Daily Star, a source with the firm said the financial company was reviewing the orders, its retail clients placed for Facebook stock and would make price adjustments if the clients paid too much. However, the person did not say what amount constituted overpaying.

Experts call for ‘even playing field’ during IPOs in wake of Facebook flotation disaster

Jamie Williamson — Fri, 25 May 2012 11:12:39 +0000

Washington, May 25 : Even as Facebook continued to face heat over whether they gave unfair advantage to preferred clients, IPO analysts have said rules need to be changed to allow investors a more even playing field to sell their shares.

A week after the company had the biggest tech IPO in U. S. history, Facebook stock closed up 3.2 percent to 33.03 dollars on the NASDAQ Thursday, causing average investors to lose thousands of dollars while betting on the firm's IPO.

Brokerage sues Nasdaq for $36m losses due to glitch during Facebook flotation

Jamie Williamson — Fri, 25 May 2012 11:06:33 +0000

New York, May 26 : A broker in New York has asked Nasdaq to compensate it for up to 35 million dollars ($A36.01 million) in losses on the Facebook initial public offering (IPO), due to the market''s computer problems on the first day of trade.

In a filing to the Securities and Exchange Commission on Wednesday, Knight Capital said that it had submitted a claim to Nasdaq for losses related to Friday''s computer problems, which disrupted buy and sell orders during the launch of the US 16 ($A16.46) billion dollars IPO and thereby causing chaos at many brokerages.

Investors sue Facebook for misleading them on business prospects following post IPO crash

Jamie Williamson — Thu, 24 May 2012 11:31:33 +0000

Washington, May 24 : Investors have sued Facebook and its Wall Street advisers over claims that the social media giant misled them about the company's business prospects before its record flotation.

The investors filed two lawsuits on Wednesday following allegations that only major potential investors were told about the reductions that analysts at the banks made during Facebook''s fortnight-long sales pitch to hopeful shareholders.

"Some insiders and investors were preferred over others," The Telegraph quoted Darren Robbins, a lawyer for one set of retail investors, as saying.

India-US meet to explore mutual business opportunities

Jamie Williamson — Tue, 15 May 2012 05:30:50 +0000

Washington, May 15 - A 40-member business delegation from India will explore business opportunities in information technology, energy, aerospace and defence, telecommunications and mobile during the Indo-American Chamber of Commerce (IACC) Summit here May 22-25.

Hosted by Fairfax County, a Washington suburb in Virginia and Fairfax-based George Mason University, the summit for US-India Trade & Economics (SUITE 2012) will be the third IACC summit in the US and the first outside New York City.

During SUITE 2012, attendees will meet with senior US government commerce and trade officials and Indian government officials in Washington, DC.

Microsoft invests $30mln in Barnes and Noble’s Nook e-reader

Jamie Williamson — Tue, 01 May 2012 11:04:22 +0000

Washington, May 1 : Software giant Microsoft has announced that it has invested 300 million dollars in American firm Barnes & Noble's e-reader and tablet business.

With its 17.6 percent stake in Barnes & Noble's Nook business, Microsoft gains access to a vast library of book titles and direct contact with the bookseller's hundreds of university bookstores.

According to The Washington Post, this is the latest effort by Microsoft to reestablish itself as a leading tech titan.

Huge potential seen in US-India business ties

Jamie Williamson — Sun, 29 Apr 2012 06:48:45 +0000

Washington, April 29 - Over 300 top business leaders from India and the United States have highlighted dynamic potential that exists in present and future collaboration between the two countries.

The first annual US-India Business West Coast Summit hosted by US-India Business Council (USIBC) and the Federation of Indian Chambers of Commerce and Industry (FICCI) in Silicon Valley over the weekend attracted prominent business and policy leaders from both countries.

CNN likely to buy Mashable tech-news website

Jamie Williamson — Wed, 14 Mar 2012 12:01:56 +0000

Washington, Mar 14 : CNN is reportedly in talks to buy the technology news website Mashable. com.

The website was founded by Scot Pete Cashmore in 2005, and has now emerged as a hugely popular blog.

The website, which claims to have 20 million users per month, is valued by some at 130 million pounds, the BBC reports.

The Wall Street Journal quoted a source, as saying that CNN will never come close to paying that amount for the site.

According to Cashmore''s official biography on Mashable. com, he started the site to focus on "up-to-the-minute news on social networks and digital trends".

US manufacturing sector slows pace

Jamie Williamson — Fri, 02 Mar 2012 08:36:55 +0000

Washington, March 2 - The US manufacturing sector continued to expand last month but eased pace on waning new orders and higher prices of raw materials, a survey revealed.

The US Institute of Supply Management (ISM) manufacturing index, also known as the purchasing managers index (PMI), stood at 52.4 percent in February, lower than the reading of 54.1 percent in January.

A reading above 50 percent indicates an expanding manufacturing sector. The US manufacturing sector has grown for 31 consecutive months by February, reported Xinhua.

US to focus on business abroad - like India, China

Jamie Williamson — Wed, 22 Feb 2012 06:07:39 +0000

Washington, Feb 22 - Suggesting that rising powers like India, China and Brazil were putting economics at the centre of their foreign policies, Secretary of State Hillary Clinton advocates Economic Statecraft to champion US businesses abroad."America's economic strength and our global leadership are a package deal. You're not going to have one without the other," she said in a keynote at a State Department Global Business Conference here Tuesday.

"Rising powers like China, India, and Brazil understand this as well, and we can't sit on the sidelines while they put economics at the centre of their foreign policies," Clinton said.

Eric Schmidt plans to sell about 2.4mln Google shares worth $1.5 bln

Jamie Williamson — Sat, 18 Feb 2012 11:15:17 +0000

Washington, Feb 18 : Google's executive chairman Eric Schmidt is planning to sell up to 2.4 million shares of stock worth nearly 1.5 billion dollars.

Schmidt, the Internet search giant's former CEO, disclosed his plans in a regulatory filing and intends to stagger the sales of the stock over a year.

The company said Schmidt, 56, was trying to raise some money and diversify his investment portfolio.

If all 2.4 million shares of stock are sold, that will reduce his stake in Google from 2.8 percent to 2.1 percent, Express. co. uk reports.

US mortgage applications drop

Jamie Williamson — Thu, 16 Feb 2012 07:05:42 +0000

Washington, Feb 16 - The US mortgage applications last week declined although mortgage rates remained at historic lows, according to the Weekly Mortgage Applications Survey released Wednesday.

The US Mortgage Bankers Association (MBA) said that the Market Composite Index of US mortgage applications, a measure of mortgage loan application volume, decreased 1.0 percent in the week ending Feb 10 on a seasonally adjusted basis from the previous week, reported Xinhua.

Facebook files for ‘biggest’ initial public offering of $5bn

Jamie Williamson — Thu, 02 Feb 2012 07:40:58 +0000

Washington, Feb 2 : Facebook has filed for an initial public offering of five billion dollars, which is expected to be the biggest technology flotation, with its founder Mark Zuckerberg comparing the launch of the company to the invention of the printing press.

"They gave more people a voice. They encouraged progress. They changed the way society was organized. They brought us closer together. Today, our society has reached another tipping point," The Telegraph quoted Zuckerberg, as saying after the filing of IPO.

Now, jeans that smell of fresh raspberries on being scratched

Jamie Williamson — Mon, 30 Jan 2012 05:30:49 +0000

Washington, Jan 30 : Naked and Famous Denim, the boutique jean world that makes glow in the dark jeans, has now come up with a pair of scratch-and-sniff, raspberry-scented jeans for 2012.

A coating of scented micro capsules have been baked into the Montreal company's jeans and when they're scratched, raspberry fragrance is released, Discovery news reported.

As for the scent fading, Naked and Famous said they've washed these jeans five times and they still smell fresh.

Samsung ‘not interested’ in buying RIM

Jamie Williamson — Wed, 18 Jan 2012 12:03:08 +0000

Washington, Jan 18 : South Korean mobile maker Samsung has said it is not interested in taking over Research In Motion, refuting a tech blog report that fueled a nearly ten percent surge in the BlackBerry maker's shares.

Earlier a tech blog report suggested RIM was seeking to sell itself to the consumer electronics giant.

But a Samsung spokesman, James Chung, said that "haven''t considered acquiring the firm and are not interested in buying RIM," The Chicago Tribune reports.

Chung also said Samsung had not been approached by the Canadian firm for a takeover.

US sells 84 F-15 jets to Saudi Arabia in deal worth 30 billion dollars

Jamie Williamson — Fri, 30 Dec 2011 13:04:30 +0000

Washington, Dec 30 : The US has officially confirmed selling 84 Boeing F-15 jets to Saudi Arabia, which is its main ally in the Middle-East. The US will also upgrade 70 existing Saudi F-15s as per the agreement. The US Congress approved a deal worth 60 billion dollars last year, which would be covered in next 10-15 years, and this agreement is a part of it only.

New home sales in US rose in November

Jamie Williamson — Sat, 24 Dec 2011 06:01:57 +0000

Washington, Dec 24 : Sales of new homes in the US rose 1.6 percent between October and November to reach an annualized rate of 315,000, authorities said Friday.

Yet the figure compares unfavourably with the level of November 2010 - 323,000 - and is far below the annual rate of 700,000 sales that is typical of a strong housing market.

Last month's reading makes it likely that 2011 will end as the worst year for new home sales since the government started keeping track in 1963.

The market for new homes was strongest last month in the South, where sales rose 12.9 percent, followed by the Midwest with an increase of 7.5 percent.

US housing market surges sharply in November

Jamie Williamson — Wed, 21 Dec 2011 07:40:00 +0000

Washington, Dec 21 : A sharp surge in the US housing market in November brought some relief to the country's turbulent economy.

The Department of Commerce said Tuesday that ground has been broken on 685,000 privately owned housing projects in November, 9.3 percent up from a month earlier, and the highest level since April 2010.

It attributes the sharp surge to the unexpected increase in the construction of new apartments, Xinhua reported.

Apartment starts surged 32.2 percent in the same month to 230,000 units after a sharp decline of 20.2 percent in October.

New York City had over 50 mn tourists in 2011

Jamie Williamson — Wed, 21 Dec 2011 05:41:37 +0000

New York, Dec 21 : New York's "quality of life" led around 50.2 million tourists to visit the city this year, Mayor Michael Bloomberg has said.

"Five and half years ago, we set an ambitious goal to reach 50 million visitors by 2015, and in 2008, we accelerated that goal to be the end of 2012," Xinhua quoted Bloomberg as saying in a statement Tuesday.

"Today, we know that we will exceed this significant milestone by year's end," he said.

"New York City's quality of life has contributed to this great success and we are confident we will sustain the success of our tourism industry in the months and years ahead," he said.

Mukesh Ambani eyes stake in Network18

Jamie Williamson — Tue, 20 Dec 2011 05:57:38 +0000

Washington, Dec 20 : Reliance Industries Chairman and Managing Director Mukesh Ambani is reportedly in talks over the possible purchase of a stake in television and Internet conglomerate Network18.

Ambani, India’s wealthiest man, has been in deal talks with Network18 founder and controlling shareholder Raghav Bahl, people familiar with the situation have revealed.

Bahl''s portfolio includes partnerships that run India''s versions of CNBC, MTV, Nickelodeon and CNN, as well as a top-rated Hindi entertainment channel and some of the country''s largest e-commerce sites.

Companies turning to social media to boost workplace productivity

Jamie Williamson — Mon, 19 Dec 2011 07:59:47 +0000

Washington, Dec 19 : Global and competitive businesses are turning to social media to bridge distances and build relationships with its customers and employees, a new study has revealed.

Savvy companies, both large and small, have recognized the value social media can bring to their organizations, something that employees and customers are expecting more and more.

Now, a tool to evaluate whether team training really works or not

Jamie Williamson — Sat, 17 Dec 2011 09:22:58 +0000

Washington, Dec 17 : The present day scenario demands evaluation of team training to ascertain if the popular process really makes a difference or not, researchers say.

To give an accurate answer to this demand, a new study sheds light on what works and what does not in team building.

"There's a demand for evaluations-an emphasis on showing that team training makes a difference in safety, decision-making, communication, clinical outcomes-you name the ultimate criteria the industry has," said Eduardo Salas, an organizational psychologist at the University of Central Florida.

US to intensify exports to India, China

Jamie Williamson — Fri, 16 Dec 2011 06:37:37 +0000

Washington, Dec 16 : The United States plans to intensify focus on India, China, Brazil and other priority markets where its exports have the best potential for continued growth.

The intensified focus on these markets is part of Commerce Department's top three priorities to help American businesses 'build it here and sell it everywhere,' focusing on supporting advanced manufacturing, increasing US exports, and attracting more investment to America from all over the world.

US would like India to move forward on opening retail

Jamie Williamson — Tue, 13 Dec 2011 04:32:08 +0000

Washington, Dec 13 : The United States has said that it would eventually like India to move forward with foreign direct investment in retail trade but it was a decision for the Indian government to work out.

"We said last week that we felt like it was a deal that was in the best interests of both the United States and the Indian people and businesses and would obviously be a boon to both our economies," State Department spokesman Mark Toner told reporters Monday.

US trade deficit shrinks

Jamie Williamson — Sat, 10 Dec 2011 04:35:09 +0000

Washington, Dec 10 - The US trade deficit declined 1.6 percent in October to $43.46 billion, its lowest level this year, the Commerce Department said Friday.

The cumulative trade deficit for the first 10 months was $465.22 billion, compared with $420.73 billion in the same period of 2010.

US exports of goods and services fell 0.8 percent in October to $179.17 billion, while imports dropped 1 percent to $222.64 billion, the Commerce Department said.

The value of US capital goods exported in October, $42.3 billion, is the highest on record, the department said, while exports to China and Latin America also reached unprecendented levels.

US airlines sue over Air India deal

Jamie Williamson — Fri, 18 Nov 2011 05:01:30 +0000

Washington, Nov 18 : In a bid to prevent Air India from receiving a $3.4 billion loan for the acquisition of 30 new aircraft, a trade body for leading US airlines has sued the US Export-Import (Ex-Im) Bank.

The loan comes at entirely too high a price and "puts us at a competitive disadvantage", the Air Transport Association of America (ATA) President and CEO Nicholas E. Calio remarked.

Growth of US manufacturing sector slows

Jamie Williamson — Wed, 02 Nov 2011 05:01:34 +0000

New York, Nov 2 : Growth of the US manufacturing sector slowed in October to just above the threshhold where expansion begins and contraction is left behind, the Institute for Supply Management said Tuesday in its latest report.

ISM's PMI index stood at 50.8 percent in October compared with 51.6 percent in September and below the approximately 52 percent that analysts had forecast.

The decline placed the indicator very close to the 50-percent level, below which the manufacturing sector is said to be in a state of contraction.

US energy policy moving in wrong direction: Chevron CEO

Jamie Williamson — Thu, 20 Oct 2011 07:55:35 +0000

Washington, Oct 20 : The energy policy in the US is moving in the wrong direction and may risk making energy more scarce and expensive, John S. Watson, chairman and CEO of Chevron corporation, has warned.

"Our energy policy is rife with contradictions," said the head of the second largest US oil company at the Peterson Institute for International Economics, a Washington-based think tank.

He said Wednesday that the Obama administration's energy policy "would reduce competitiveness of US oil companies" and diminish their ability to invest, reported Xinhua.

US consumer prices rose in September

Jamie Williamson — Thu, 20 Oct 2011 05:54:26 +0000

Washington, Oct 20 : US consumer prices rose 0.3 percent last month, bringing the 12-month inflation rate to 3.9 percent, the Labour Department said Wednesday.

The core Consumer Price Index, which excludes more volatile food and energy prices, climbed only 0.1 percent in September, while year-on-year core inflation was 2 percent.

Wholesale prices increased 0.8 percent in September and by 6.9 percent over the preceding 12 months, according to official data released Tuesday.

Numbers pointing to possible growth in inflationary pressure could limit the Federal Reserve's scope for further measures to stimulate the still-sluggish US economy.

Indian American named business head in rich US county

Jamie Williamson — Wed, 14 Sep 2011 05:46:50 +0000

Washington, Sep 14 - An Indian American with interests in media and the diamond business has been promoted as director of Business and Economic Development of Nassau County in New York state, one of America's wealthiest counties.

The first Indian American to hold the top business job, Kamlesh Mehta's primary role is to provide support to existing businesses which are suffering in tough economic times and create opportunities to attract new business enterprises.

Hotelier Hyatt leads the way in employee happiness

Jamie Williamson — Tue, 06 Sep 2011 14:43:45 +0000

New York, Sept 6 : Hyatt Hotels has the happiest staff, a new survey of hotel employees has found.

CareerBliss came to this conclusion after speaking to thousands of staff members from major hotel chains, asking them how happy they were in their job, reports the New York Daily News.

After Hyatt, Marriott scored second place, followed by Walt Disney Parks and Resorts, which operates destinations such as Disneyland in California and the World Disney World Resort in Florida, the world''s largest theme park.

Playboy planning to resurrect club in Chicago after 20-yrs

Jamie Williamson — Tue, 30 Aug 2011 08:28:46 +0000

New York, Aug 30 : Playboy is said to be planning to resurrect Chicago's Playboy Club, which was shut down 20-years ago, close to where the original had been opened in the 1960s.

According to Crain's Chicago Business, Playboy CEO Scott Flanders said the company is "in the final stages of selecting a site" in the Windy City, the New York Post reported.

The company is reportedly pursuing a mansion near Chicago's north side, where the Il Mulino restaurant now operates.

Flanders said the new club, complete with scantily clad Playboy Bunnies, could be open by early 2012.

India, US vital markets for each other: US

Jamie Williamson — Sat, 02 Jul 2011 04:59:12 +0000

Washington, July 2 : Challenging the notion that US investment in India has gone down, an official has said that the two countries remain vital markets for each other and India still has an attractive business climate.

"I haven't seen a figure that says that US investment has gone down to India," State Department spokesman Mark Toner said Friday when a reporter suggested that US investment in India has gone down.

"India remains a vital market for the US and vice versa. I mean, that goes without saying," he said pointing to the just concluded India's biggest $4.1 billion deal with the US for 10 Boeing C-17 heavy-lift aircraft.

Foreign investment in US rose 49 percent in 2010

Jamie Williamson — Tue, 21 Jun 2011 05:00:12 +0000

Washington, June 21 : The US is the No. 1 destination for foreign direct investment, with close to $228.5 billion received in 2010, up 49 percent over the previous year, the White House Council of Economic Advisers said Monday.

President Barack Obama's administration is committed to stimulating investment and opening the US market to foreign capital, Council chair Austan Goolsbee said in a conference call with reporters.

One of Washington's priorities is to smoothen the way for any company wishing to invest in the US, Goolsbee said.

US trade body hails India's $4 bn Boeing order

Jamie Williamson — Tue, 07 Jun 2011 04:13:24 +0000

Washington, June 7 : The US-India Business Council (USIBC), a business advocacy group representing some 400 top US companies, has hailed India's decision to purchase 10 Boeing C-17 aircraft, valued at more than $4.1 billion.

"This is testament to India's appreciation of US technology and confidence in the United States as a long-term defence sales partner," said USIBC President Ron Somers noting that the purchase would make the Indian Air Force the owner and operator of the largest fleet of C-17s outside of the US.

"This largest-ever Indian purchase of US defence technology we hope will be just the beginning of much more to come," he said.

Indian firms hiring workers in North America: Report

Jamie Williamson — Mon, 23 May 2011 08:57:51 +0000

Washington, May 23 : India's outsourcing giants, faced with rising wages at home, are looking for growth opportunities in the US with many of them hiring workers in North America, according to a media report.

With Washington crimping visas for visiting Indian workers, some companies such as Mumbai-based Aegis Communications are slowly hiring workers locally as their largest corporate customers are based in North America, the Washington Post reported Sunday.

"Many of them are call centre workers. Many are African Americans without college degrees. Some lack high school diplomas," it noted saying, "In this evolution, outsourcing has come home."

BP CEO says Gulf oil-slick is �tiny� when compared to a �big ocean�

Jamie Williamson — Sat, 15 May 2010 08:57:41 +0000

New York, May 15 : The chief executive of BP, Tony Hayward, has shamelessly tried to extenuate his company? s colossal mistake by saying that the oil-slick in the Gulf of Mexico is ?relatively tiny? when compared to the ?very big ocean?.

The Gulf oil-spill has the makings of the biggest ecological disaster in US history. Its devastating ramifications will be borne by the aquatic life in the area for years to come, experts say.

"The Gulf of Mexico is a very big ocean. The amount of volume of oil and dispersant we are putting into it is tiny in relation to the total water volume," Fox News quoted an impenitent Hayward as saying.

Six Indians among 50 fastest-growing women-led US companies

Jamie Williamson — Fri, 23 Apr 2010 06:08:19 +0000

Washington, April 23 - Indian American entrepreneurs run six of the top 50 fastest-growing women-led companies in the US, according to an annual ranking by trade group Women Presidents' Organization.

Argent Associates Inc, a supply-chain management company from Edison, New Jersey, has been ranked the No. 1 by WPO, a trade group for multimillion-dollar women-owned businesses, which determined its list using a formula that combines percentage revenue growth and absolute growth.

Argent founder Beatriz Manetta attributes the growth spurt, noteworthy in an otherwise stagnant economy, to an increase in clients' imports from China and India that are assembled in her warehouses, according to the Wall Street Journal.

56 Indian firms in 'The Forbes Global 2000'

Jamie Williamson — Thu, 22 Apr 2010 06:12:20 +0000

Washington, April 22 - China with 113 members and India with 56 members gained the most ground in breaking into the exclusive club of "The Forbes Global 2000" - "the biggest, most powerful listed companies in the world".

The latest list of global giants released by the reputed US business magazine Wednesday shows the corporate dominance of the developed nations is steadily receding. The rankings span 62 countries, with the US (515 members) and Japan (210 members) still dominating the list, but with a combined 33 fewer entries.

EBay reports profits up 11 percent

Jamie Williamson — Thu, 22 Apr 2010 05:54:11 +0000

San Francisco, April 22 - Online auction leader eBay Wednesday reported an 11-percent rise in quarterly profits, as revenue grew in its core businesses of auctions and its Paypal online payment system.

The Internet pioneer said that it earned $398 million in its fiscal first quarter, compared to earnings of $357 million year ago.

Revenue rose 9 percent to $2.2 billion, an 18-percent rise from last year.

EBay chief executive John Donahoe said the increases reflected changes designed to attract and retain more shoppers: "There's no doubt we're seeing growing traction as these changes begin to build on top of each other."

Stealth marketing – the latest gimmick to lure customers

Jamie Williamson — Mon, 19 Apr 2010 11:10:26 +0000

New York, Apr 19 : Companies are increasingly making use of a crafty promotional trick called stealth marketing, in which the consumers are being pitched for a product without even knowing it.

Companies like Blackberry have reportedly employed women to flirt with potential male customers, and then asking them to feed their numbers in the latest smart phones.

Now, ‘The Joneses’ is bringing stealth marketing, also called undercover or buzz marketing, to the big screen

The dark comedy stars David Duchovny and Demi Moore as the heads of a seemingly perfect family that is actually just a team of stealth marketers paid by brands to look perfect and push products on their friends and neighbours.

World Bank, UN forecast sluggish recovery in 2010

Jamie Williamson — Thu, 21 Jan 2010 06:51:04 +0000

Washington, Jan 21 - The World Bank and the UN warned of a sluggish and fragile global recovery from recession but predicted a more robust push out of the slump by developing countries, according to separate economic forecasts released Wednesday.

Both organisations estimated that the world economy shrank by 2.2 percent in 2009, the worst slump in generations, brought on by a financial crisis that spread from Wall Street to the entire globe in late 2008.

The World Bank predicted the global economy will grow 2.7 percent in 2010 and 3.2 percent in 2011. Developing countries will lead the way out of the recession with 5.2 percent growth in 2010 and 5.8 percent the following year.

US Black Friday shoppers spend more than in 2008

Jamie Williamson — Sun, 29 Nov 2009 03:40:59 +0000

Washington, Nov 29 - US shoppers were out in full force Saturday during the year's most important weekend for retailers after laying out an estimated $10.66 billion on Black Friday in stores.

The figure was up about 0.5 percent over Black Friday 2008, according to the Wall Street Journal. The information was compiled by ShopperTrak RCT Corporation which tracks sales at more than 50,000 stores.

The increase was disappointing measured against expectations by retailers' chief marketing officers of an 1.8 percent boost over 2008 in their own stores, according to a survey conducted by BDO Seidman LLP in October and reported by Bloomberg financial news

service.

But compared to 2008, when sales in November and December declined 5.8 percent from 2007, the increase was good news.

IMF okays sale of gold reserves

Jamie Williamson — Sat, 19 Sep 2009 02:22:21 +0000

Washington - The International Monetary Fund's executive board on Friday approved the sale of 403.3 tons of gold from its reserves to secure its finances and fund loans to low-income countries.

The sale amounts to one-eighth of the IMF's reserves and is valued at about 13 billion dollars at current gold prices.

The move is part of a plan outlined by the IMF last year to diversify its income by selling part of its gold reserves to create an endowment. The money will help to fund a major increase in the IMF's lending over the past year to help countries suffering from the global financial downturn.

Oracle sales swoon as businesses tighten belts

Jamie Williamson — Thu, 17 Sep 2009 02:42:21 +0000

San Francisco - Business software maker reported a 5-per- cent decline in quarterly revenue Wednesday as businesses held off on buying new software.

The Silicon Valley company said its sales dropped to 5.1 billion dollars, but the company managed to increase profits by 8 per cent to 1.1 billion dollars, compared to 1.07 billion dollars in the year-ago quarter.

The company said that sales of new software sank 17 per cent to 1 billion dollars, but were offset by a rise in software updates and product-support revenues of 6 per cent to 3.1 billion dollars.

Oracle President Safra Catz said the company was able to increase profit despite weak sales by "substantially" improving its operating margins.

Exelon offers to buy NRG for $6.2 billion in all-stock deal

Peter Welsh — Mon, 20 Oct 2008 12:33:57 +0000

In a strategic move to expand geographically and boost earnings and cash flow, Exelon Corp. made an announcement on Sunday, about its unsolicited offer to acquire NRG Energy Inc. in an all-stock transaction.

Exelon’s offer represents a total equity value of approximately $6.2 billion for NRG based on Exelon’s closing price on October 17.

With a fixed exchange ratio with a value of $26.43 for each NRG common share, the Exelon offer represents a 37 percent premium over NRG’s closing price of $19.33 a share on Friday.

NBC Universal’s $500-Million Spending Cuts

Jane Kornblut — Sun, 19 Oct 2008 05:04:47 +0000

A worldwide economic slowdown has NBC Universal on a budget, with $500-million or about 3% of the company’s annual budget in spending cuts scheduled for next year.

Announcing the budget cuts, staff has been directed to reduce promotion expenses, discretionary spending i.e. travel and entertainment, outside consultants, staffing costs, etc.

The latest in expense cuts, there was a $750-million in expense cuts in 2006, including a reduced NBC Universal workforce after 700-jobs were axed.

AIG’s Pay And Spending Under Scrutiny

Jane Kornblut — Fri, 17 Oct 2008 10:15:19 +0000

In response to threat of legal action from New York Attorney General Andrew Cuomo, American International Group (AIG) said Thursday that it will institute reform on its spending practices, and curb millions of dollars of spending on junkets, perks and executive compensation.

Google Posts 26% Profit Increase For The Third Quarter

Robert Murray — Fri, 17 Oct 2008 10:08:47 +0000

Showing its resilience in the midst of the economic turbulence, Internet giant Google Inc. posted a 26% profit increase and a 31% revenue jump for the third quarter. The reassuring performance, surpassing forecasts by analysts, lifted Google shares by more than 10% late Thursday.

Intel reports record revenue and earnings in 3Q

Jim Huckabee — Wed, 15 Oct 2008 19:23:30 +0000

Intel Corp., the world’s largest chipmaker on Tuesday reported record revenue and earnings for the third quarter, saying that its profit during the quarter rose 12%, beating the estimates of the analysts.

In a statement, Paul Otellini, the CEO of the chip giant, said: “Intel delivered the best third-quarter revenue in its history,” and added: “We were solidly profitable.”

Discover settles antitrust lawsuit against Visa, MasterCard

Jim Huckabee — Wed, 15 Oct 2008 19:23:27 +0000

The 2004 antitrust lawsuit filed by Discover Financial Services against Visa Inc. and MasterCard Inc. has been settled. A clerk for US District Judge, Barbara Jones, said in Manhattan on Tuesday that the lawsuit, which was to go to trial this week, was settled late Monday on the eve of jury selection in the case.

$9 billion cash infusion for Morgan Stanley by Mitsubishi UFJ

Peter Welsh — Tue, 14 Oct 2008 01:09:25 +0000

As a result of its talks with Mitsubishi UFJ Financial Group Inc. - about terms of the $9 billion cash infusion - the Wall Street firm, Morgan Stanley, registered a rise of in German trading. It went up 31% from its close.

The Morgan Stanley stock, which on October 10 sank 60% going down to a 13-year low, climbed to $12.69 at 11:05 a.m. in Frankfurt trading.

Full TV shows, with ads, on YouTube

Jane Kornblut — Sun, 12 Oct 2008 01:55:28 +0000

Months of experimenting with long-form video has yielded fruit for the Google Inc.’s website – YouTube. On Friday, the website announced that it would start offering full-length episodes of some television shows. The longer videos will include commercial slots for advertising before, during and after each episode, enabling Google to raise more revenue from its nearly four-year-old video sharing site.

Automakers - GM, Ford, Chrysler - Face Bankruptcy Risk

Jane Kornblut — Sat, 11 Oct 2008 09:59:37 +0000

According to Standard & Poor’s lead automotive credit analyst, Robert Schulz, the three biggest US automakers - General Motors Corp., Ford Motor Co. and Chrysler LLC - may be forced into bankruptcy as the global credit freeze has dampened US sales.

With stalled car sales, it has become virtually impossible for GM and Ford to borrow money, resulting in plunging their stock prices to near pocket-change levels. Though privately held Chrysler says it is hitting its financial targets, bankruptcy talk is enveloping it as well.

Schulz said the ‘trigger’ for a forced restructuring under bankruptcy protection would be based on the automakers’ ability to preserve liquidity as US sales slid 27% last month, the maximum in 17 years.

Walgreen Shares Hit 10-Year Low; CEO Rein Resigns

Robert Murray — Sat, 11 Oct 2008 09:57:04 +0000

After Walgreen Co.’s failed bid to take over California-based smaller rival Longs Drug Stores Corp., its chairman and chief executive officer, Jeffrey A. Rein, resigned effective immediately. This announcement resulted in the shares of Walgreen sinking to their lowest price in a decade on Friday - $23.22 following a drop of 8.2%.

Citigroup Abandons Wachovia Battle With Wells Fargo

Zach Blaney — Sat, 11 Oct 2008 04:15:08 +0000

By abandoning its brief but acrimonious battle with Wells Fargo & Co., over one of the largest banks of US - Wachovia Corp. - Citigroup has lost out on a deal crucial to strengthening its retail banking business. However, it intends to continue its lawsuit, seeking more than $60 billion from Wells Fargo and Wachovia for striking a deal after Wachovia had agreed to negotiate exclusively with Citigroup.

Walgreen withdraws its $2.8 billion bid for Longs

Peter Welsh — Thu, 09 Oct 2008 19:39:05 +0000

Walgreen Co. has dropped its $2.8 billion offer to buy the pharmacy chain, Longs Drug Stores, leaving CVS Caremark, with its $2.7 billion bid, as the sole suitor for the California-based store. The decision has dashed the hopes of the shareholders hoping for a better price.

Analysts opine that CVS may seek to re-negotiate its offer to buy Longs. CVS on August 13 said it had agreed to pay $71.50 a share for Longs. A month later, Walgreen emerged with a $75-a-share bid. In after-hours trades, Longs fell to about $70 a share, down 2.3%.

AIG gets additional $37.8 billion from Fed

Jim Huckabee — Thu, 09 Oct 2008 19:17:46 +0000

To help the American International Group (AIG) wade through a continuing liquidity crisis, the Federal Reserve Board would provide up to an additional $37.8 billion to the insurance giant. The bank will receive investment-grade, fixed-income securities in return.

Hartford shares climb on $2.5 billion Allianz investment news

Peter Welsh — Tue, 07 Oct 2008 18:40:30 +0000

Hartford Financial Services Group Inc. strengthened its capital position on Monday with a $2.5 billion investment from German financial services firm, Allianz SE. The news sent Hartford shares up 3.30, or 12%, to $30.70 in early morning trading, in spite of the company also predicting a steep third-quarter loss, and slashing its dividend.

Sun Country files for bankruptcy, operations to continue

Peter Welsh — Tue, 07 Oct 2008 18:30:12 +0000

Seeking bankruptcy-court protection, Sun Country Airlines filed for Chapter 11 bankruptcy on Monday, a few days after the founder of its parent company, Petters Group Worldwide, became the target in a multimillion dollar fraud investigation. Petters Group became the sole owner of Sun Country last November, after co-owning the carrier since October 2006.