Finance news

• Idle cranes, untapped mines as Afghans struggle to wean themselves off aid

  02-12-2015 23:25 via news.yahoo.com
  
  By Robert Birsel KABUL (Reuters) - The Omid Gardizi construction company on the outskirts of Kabul is at the sharp end of a painful transformation Afghanistan faces, as billions of dollars in foreign spending come to an end and Taliban violence undermines a stuttering economy. Standing in a yard crammed with 50 pieces of hulking machinery, company owner Sayed Dilagha Mossavi said for years his work depended on NATO-led forces. "The work has finished." The company employed 25 people in 2012, the
  
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• Wall Street ends sharply lower; energy leads decline

  02-12-2015 23:19 via news.yahoo.com
  
  U.S. stocks closed sharply lower on Wednesday after hawkish comments from Janet Yellen boosted expectations of an interest rate hike, and oil dipped below $40 a barrel. Investors also attributed late-day selling to news coverage of a shooting in southern California. The S&P 500 energy index fell 3.1 percent, leading declines in the S&P 500 as U.S. crude oil futures finished the session down 4.6 percent at $39.94.
  
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• Yellen sees US economy ready for rate hike

  02-12-2015 23:09 via news.yahoo.com
  
  Federal Reserve Chair Janet Yellen stoked expectations of a looming rise in the benchmark federal funds rate Wednesday, saying she expects the US economy will continue to grow strongly. In a Washington speech, Yellen described conditions as nearly ripe for the first rate increase in nine years and said that domestic and international threats to US economic growth had diminished. Yellen made no comment on whether the Fed will raise its benchmark federal funds rate at its next meeting on December
  
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• Fed's Yellen says 'looking forward' to day of first rate rise in decade

  02-12-2015 22:38 via news.yahoo.com
  
  Federal Reserve Chair Janet Yellen said on Wednesday she was "looking forward" to a U.S. interest rate rise that will be seen as a testament to the economy's recovery from recession. Fed policymakers are widely seen raising interest rates for the first time in almost a decade at their next meeting on Dec. 15-16, but they continue to parse data and trends carefully given the uneven nature of the U.S. recovery. In her remarks to the Economic Club of Washington, Yellen expressed confidence in the U
  
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• Yellen comments boost dollar, stocks fall

  02-12-2015 22:18 via news.yahoo.com
  
  The dollar strengthened on Wednesday and stocks fell on Wall Street, as Federal Reserve Chair Janet Yellen signaled a readiness to hike interest rates and U.S. data indicated a solid labor market. Yellen said she was "looking forward" to a U.S. rate hike that will be seen as a testament to the economy's recovery from recession, although she did not indicate if she still expected a hike would be warranted at the Fed's last policy meeting of the year on Dec. 15-16. "I was a little surprised she so
  
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• US economy shows 'modest' growth: Fed report

  02-12-2015 22:16 via news.yahoo.com
  
  The Fed released its Beige Book report Wednesday as Chair Janet Yellen, in a speech, signaled the rate hike could come in two weeks at the Federal Open Market Committee's policy meeting on December 15 and 16. The report, a collection of anecdotal evidence from the central bank's 12 districts, provides some of the context for the FOMC policymakers in deciding monetary policy. "Economic activity increased at a modest pace in most regions of the country since the previous Beige Book report" in Octo
  
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• Fed says more consumer spending, housing boost US growth

  02-12-2015 21:44 via news.yahoo.com
  
  WASHINGTON (AP) — The Federal Reserve says the U.S. economy grew at a modest pace this fall, lifted by higher consumer spending and more home sales and construction.
  
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• Fed's Williams prefers rate hikes 'sooner than later'

  02-12-2015 21:41 via news.yahoo.com
  
  With the U.S. economy on the cusp of a full recovery, the Federal Reserve should leave near-zero interest rates behind "sooner than later," San Francisco Fed President John Williams said on Wednesday. Reprising an argument also made by Fed Chair Janet Yellen, Williams said that an earlier start to rate hikes would allow the Fed to remove monetary accommodation smoothly and gradually while still giving the economy the "steady nudge" of monetary accommodation that it still needs. The Fed has kept
  
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• Yellen confident in economy ahead of expected rate hike

  02-12-2015 20:54 via news.yahoo.com
  
  WASHINGTON (AP) — Federal Reserve Chair Janet Yellen on Wednesday indicated that the U.S. economy is on track for an interest rate hike this month, but she said the Fed will need to review incoming data before making a final decision.
  
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• Yellen says 'looking forward' to day of rate hike

  02-12-2015 20:18 via news.yahoo.com
  
  Federal Reserve Chair Janet Yellen said on Wednesday she was "looking forward" to a U.S. interest rate hike that will be seen as a testament to the economy's recovery from recession. Yellen did not indicate if she still expected a rate hike would be warranted at the Fed's last remaining policy meeting this year on Dec. 15-16. In her remarks to the Economic Club of Washington, she expressed confidence in the U.S. economy, saying job growth through October suggested the labor market was still heal
  
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• U.S. labor market shows hints of broader wage pressures: Fed

  02-12-2015 20:13 via news.yahoo.com
  
  The U.S. labor market tightened modestly in recent weeks with some upward pressure on wages as employers found it increasingly difficult to fill jobs across skill levels, the Federal Reserve said on Wednesday. U.S. economic activity continued to expand at a modest pace in most regions from early-October through mid-November, the Fed said in its Beige Book report of anecdotal information on business activity collected from contacts nationwide. Most districts said such wage pressures increased onl
  
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• Chinese president in South Africa to discuss trade

  02-12-2015 19:56 via news.yahoo.com
  
  PRETORIA, South Africa (AP) — Welcomed by a military band and a guard of honor, Chinese President Xi Jinping began a state visit to South Africa on Wednesday, part of China's effort to strengthen economic ties with Africa.
  
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• White House urges Congress to abandon riders, fund government

  02-12-2015 19:53 via news.yahoo.com
  
  WASHINGTON (Reuters) - The Obama administration on Wednesday called on Congress to quickly pass legislation to fund the federal government, saying proposed riders would undermine Wall Street reform, carbon curbs for power plants, and Obamacare health insurance law. "Congressional Republicans are whistling past the political graveyard of a government shutdown," White House spokesman Josh Earnest told reporters at a briefing. ...
  
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• Dow, S&P 500 stay lower after Yellen comments

  02-12-2015 19:40 via news.yahoo.com
  
  Record highs in Alphabet, Amazon and Netflix kept the Nasdaq in slightly positive territory. In prepared remarks to the Economic Club of Washington, Yellen said she was "looking forward" to a rate hike that will be seen as a testament to the economy's recovery from recession.
  
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• US STOCKS-Dow, S&P 500 stay lower after Yellen comments

  02-12-2015 19:36 via news.yahoo.com
  
  The S&P 500 and the Dow stayed modestly lower Wednesday afternoon following comments by Federal Reserve Chair Janet Yellen suggesting the U.S. central bank may be ready to raise rates. Record highs in ...
  
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• Canada's Morneau leaves door open on budget deficits

  02-12-2015 19:13 via news.yahoo.com
  
  OTTAWA (Reuters) - Canada's finance minister on Wednesday left the door open to running budget deficits larger than the C$10 billion ($7.48 billion) the new Liberal government campaigned on, saying that slow growth means government investments in the economy are important. Bill Morneau also told reporters that the government was continuing to pay very close attention to the housing market and said Canadian homebuyers should make sure they can service their mortgages over the long term. (Reportin
  
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• Dollar strength continues after Yellen comments, stocks dip

  02-12-2015 19:10 via news.yahoo.com
  
  The dollar extended gains on Wednesday and stocks dipped on Wall Street, as Federal Reserve Chair Janet Yellen signaled a readiness to hike interest rates and investors took in U.S. data that indicated a strengthening labor market. Yellen said she was "looking forward" to a U.S. interest rate hike that will be seen as a testament to the economy's recovery from recession. "There could be events I suppose, terrorism or otherwise, that could make you postpone, but I think the certainly of (a rate h
  
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• Yellen still sees slack in US jobs market

  02-12-2015 19:08 via news.yahoo.com
  
  Federal Reserve Chair Janet Yellen said Wednesday that she still sees slack in the US jobs market but that continued moderate economic growth over the next few years should eliminate it. In a speech to the Economic Club of Washington just two weeks before the Fed weighs a much-awaited interest rate hike, Yellen said she sees a "significant" number of people who would take jobs if they were available and pay were stronger.
  
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• US STOCKS-Dow, S&P 500 slightly lower after Yellen comments

  02-12-2015 18:56 via news.yahoo.com
  
  The S&P 500 and the Dow stayed modestly lower Wednesday afternoon following comments by Federal Reserve Chair Janet Yellen that she was "looking forward" to a U.S. interest rate hike. Record ...
  
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• Why President Obama Rejected the Pentagon’s Plan to Close Gitmo

  02-12-2015 18:50 via news.yahoo.com
  
  Last month the Obama administration rejected a long-awaited Pentagon plan to close the U.S. detention facility at Guantanamo Bay, Cuba. The agency pegged the cost at up to $600 million, including as much as $350 million in construction costs, according to The Wall Street Journal. The price was too high for President Obama, who pledged to close the prison during the 2008 election.
  
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• Bank of Canada holds rates steady, but flags household debt risk

  02-12-2015 18:32 via news.yahoo.com
  
  By Randall Palmer and Leah Schnurr OTTAWA (Reuters) - The Bank of Canada held interest rates steady as expected on Wednesday, but warned of rising vulnerabilities in the household sector, where debt levels have climbed as consumers take advantage of low borrowing costs. The Canadian dollar firmed following the central bank's policy statement, which was seen by some market players as less dovish than expected given news this week that the economy shrank in September. The bank kept its overnight i
  
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• Cabela's exploring strategic alternatives

  02-12-2015 18:02
  
  (Reuters) - U.S. hunting and fishing store chain Cabela's Inc , under pressure from investor Elliott Associates, is exploring a sale and other strategic alternatives.
  
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• With buyback help, Yahoo stock has soared under Mayer

  02-12-2015 17:53 via news.yahoo.com
  
  By Rodrigo Campos NEW YORK (Reuters) - Investors who made early bets on Marissa Mayer's ability to turn around Yahoo! Inc were well rewarded for their faith: the share price has more than doubled and widely outperformed the broader stock market since she took over as president and CEO in July 2012. The board of Yahoo is weighing a sale of its core Internet business when it meets this week amid a broader debate about the future of the company and that of high-profile Mayer. Yahoo's stock closed a
  
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• Dollar strengthens after data, Yellen eyed

  02-12-2015 17:33 via news.yahoo.com
  
  NEW YORK (Reuters) - The dollar hit an 8-1/2 month high on Wednesday as economic data supported a rate hike by the U.S. Federal Reserve in December, while U.S. stocks were little changed as investors awaited comments from Fed Chair Janet Yellen.
  
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• Royal Bank of Canada profit tops estimate; watching energy borrowers

  02-12-2015 17:32 via news.yahoo.com
  
  By John Tilak TORONTO (Reuters) - Royal Bank of Canada posted an 11 percent rise in fourth-quarter profit that topped market expectations on Wednesday as gains in retail banking and capital markets more than offset bad loans in the oil and gas sector. Shares of RBC, Canada's most valuable company by market capitalization, rose 0.6 percent to C$77.35 in Toronto trading. Canadian banks have so far managed to largely shrug off a soft domestic economy, concerns about the housing market and fallout f
  
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• Exclusive: Charterhouse weighs $637 million sale of Italian drug firm Doc Generici - sources

  02-12-2015 17:29
  LONDON (Reuters) - European buyout firm Charterhouse [CHCAP.UL] has hired London-based L.E.K. Consulting to provide strategic advice to the Italian generic drugs company Doc Generici, which could...
  
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• Yahoo shares jump as report says it may sell internet business

  02-12-2015 17:05 via news.yahoo.com
  
  The Yahoo Inc. board of directors is considering a plan to sell off the company's troubled internet business, according to a report in the Wall Street Journal. The Yahoo board has a series of meetings from Wednesday to Friday in which it is discussing options over how to move forward on its lucrative stake in Chinese e-commerce firm Alibaba Group. Shares of Yahoo rose sharply Wednesday on the news.
  
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• Spanish court blocks Catalan independence drive

  02-12-2015 16:51 via news.yahoo.com
  
  Spain's Constitutional Court blocked a Catalan secession drive on Wednesday, deepening confrontation and adding to political uncertainty in Spain before this month's national election. The Constitutional Court, in an unusually rapid decision, struck down a resolution by the Catalan regional assembly last month which set out a plan to establish a republic within 18 months in the well-off northeastern region which accounts for about a fifth of Spain's economic output. Declaring the resolution unco
  
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• Ukraine open to talks with Russia over EU trade deal

  02-12-2015 16:43 via news.yahoo.com
  
  Ukrainian President Petro Poroshenko on Wednesday said Kiev was open to last-minute talks aimed at overcoming fierce Russian opposition to a free trade accord between his country and the European Union. "We proposed another consultation with the Russian Federation in order to demonstrate our readiness to help remove any barriers that would bring problems for Russia," Poroshenko told reporters on a visit to the Lithuanian capital Vilnius. "We are prepared for professional economic discussions," h
  
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• Venezuela President Maduro threatens to jail Heinz

  02-12-2015 16:38 via news.yahoo.com
  
  CARACAS, Venezuela (AP) — Venezuela President Nicolas Maduro is threatening to jail managers of the local subsidiary for Kraft Heinz, accusing them of possible economic sabotage.
  
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• Natixis says Asian banking revenues to jump 30 percent on new strategy

  02-12-2015 16:27
  
  HONG KONG (Reuters) - Asia investment banking revenues at Paris-based lender Natixisare set to jump by nearly 30 percent this year, or twice the annual target, as clients played China's volatile...
  
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• Merkel says Afghans coming to Germany for better life will be sent back

  02-12-2015 16:27 via news.yahoo.com
  
  By Michelle Martin BERLIN (Reuters) - Chancellor Angela Merkel said on Wednesday that Afghans heading to Germany in pursuit of better economic circumstances will be sent back to Afghanistan and people still there should move to safe zones within their country rather than migrating to Europe. Hundreds of thousands of migrants, many fleeing war and poverty in the Middle East, have streamed into Germany this year, and German authorities and communities are now buckling under the strain. Afghans - w
  
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• If history is a guide, dollar will drop after Fed hike

  02-12-2015 16:13 via news.yahoo.com
  
  In the last couple of decades, the dollar index , which measures the greenback against a basket of six currencies, has fallen every time the Federal Reserve has begun a cycle of interest rate hikes. The Fed likely to hike on Dec. 16 for the first time in almost a decade and many big banks, including Goldman Sachs and Morgan Stanley, think the dollar uptrend that began in the second half of 2014 remains intact. Speculators are holding huge bets in its favor, given the U.S. economy is outperformin
  
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• South Africa's finmin says ratings downgrade would impact markets

  02-12-2015 16:01 via news.yahoo.com
  
  South Africa's finance minister said on Wednesday that a potential credit ratings downgrade would impact markets in Africa's most industrialised economy. If it does happen, it will have an impact on markets," Finance Minister Nhlanhla Nene told Reuters before the South Africa-China bilateral talks in Pretoria. Traders said investors were focused on Friday's reviews from Fitch, which rates South Africa at BBB with a negative outlook and warned of a possible downgrade in September, and from Standa
  
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• Wall St. opens little changed ahead of Yellen's speech

  02-12-2015 15:48 via news.yahoo.com
  
  Data showed that the private sector added the most jobs since June as markets awaited clues from Yellen on an expected interest rate increase on Dec. 16. The economic data has not been playing ball with the Fed's policy plans in recent weeks and has been mixed at best.
  
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• Atlanta Fed's Lockhart says rate case 'compelling' ahead of last review

  02-12-2015 15:45 via news.yahoo.com
  
  U.S. economic data would have to "drastically" alter the nation's outlook over the next two weeks to change the "compelling" case for an initial hike in interest rates when the Federal Reserve next meets on Dec. 15-16, Atlanta Fed President Dennis Lockhart said on Wednesday. "My staff and I are getting close to a last review of the overall picture suggested by the data," Lockhart said of the potentially "historic" Fed session later this month that may approve the first interest rate increase in
  
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• South Africa's finmin says ratings downgrade will impact markets

  02-12-2015 15:32 via news.yahoo.com
  
  South Africa's Finance Minister said on Wednesday that a potential credit ratings downgrade would impact markets in Africa's most industrialised economy. If it does happen, it will have an impact on markets," Nhlanhla Nene told Reuters before the South Africa-China bilateral talks in Pretoria. Investors are bracing for a possible credit downgrade from on Friday from Fitch, which rates South Africa at BBB with a negative outlook and has previously warned of a downgrade, citing a negative economic
  
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• Pilot of Russian plane downed by Turkey buried with military honors

  02-12-2015 15:32 via news.yahoo.com
  
  A Russian pilot killed after his plane was shot down by a Turkish jet last week was buried in the Russian city of Lipetsk on Wednesday with military honors, after being posthumously given the country's highest military award. The downing of Oleg Peshkov's plane on Nov. 24 near the Syrian-Turkish border has triggered a tense standoff between Russia and NATO member Turkey and Moscow has imposed a raft of economic sanctions on Ankara in retaliation. Russian defense officials said Peshkov managed to
  
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• Lockhart says initial hike should be seen as vote of confidence

  02-12-2015 15:26 via news.yahoo.com
  
  The Fed's first rate hike should be seen as vote of confidence in the economy and a signal to households and businesses to spend and invest, Atlanta Fed president Dennis Lockhart said on Wednesday. Speaking in Florida, Lockhart said an initial 25 basis point rate hike would have little impact on credit-sensitive markets for things like automobiles and homes. Any significant rise in those sorts of retail markets, or any subsequent curb on demand, is only likely to happen much later in the tighten
  
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• Fed's Tarullo says looking into smaller banks' concerns

  02-12-2015 15:05 via news.yahoo.com
  
  Federal banking agencies are looking at many of smaller banks' concerns, including simplifying capital rules for community banks, said Federal Reserve Governor Daniel Tarullo on Wednesday. In prepared remarks for an outreach meeting Tarullo did not comment on the outlook for the U.S. economy or monetary policy. In an ongoing review smaller banks have asked for a change regarding the application of Basel III capital requirements, saying the compliance burden is disproportionate to the benefit and
  
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• New Nissan bid to end Renault control and curb French clout: sources

  02-12-2015 14:56 via news.yahoo.com
  
  By Laurence Frost and Gilles Guillaume PARIS (Reuters) - Japanese carmaker Nissan has set out new proposals to end parent Renault's control and block French government interference in their alliance, two sources said on Wednesday. The revised demands aim to defuse a governance row that erupted in April when French Economy Minister Emmanuel Macron raised the government's stake in Renault to 19.7 percent from 15 percent to secure double voting rights. In a document outlining its position, Nissan i
  
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• Neuberger, Apax in talks to buy stake in Italy's Engineering

  02-12-2015 14:55
  MILAN (Reuters) - Private equity funds Neuberger Berman and Apax Partners are in talks to buy a controlling stake in Italian software company Engineeringand would offer to buy the remaining shares...
  
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• China's Xi in S.Africa ahead of regional summit

  02-12-2015 14:51 via news.yahoo.com
  
  Chinese President Xi Jinping arrived in South Africa on Wednesday ahead of a two-day summit with regional leaders as Africa seeks further massive investment despite the Asian giant's economic slowdown. China drove the commodity boom as it bought up oil, iron ore, uranium and copper around the world over the past decade, but its growth has dipped this year, triggering a sharp slump in prices.
  
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• ECB stimulus hopes keep Europe stocks at three-month high

  02-12-2015 14:43 via news.yahoo.com
  
  European stocks hovered at a 3-month high and the euro was just above a 7-1/2-month low on Wednesday as euro zone inflation remained barely visible and underlined just why the ECB is set for more stimulus. The euro dropped back below $1.06 as the first reading of November euro zone inflation stayed at 0.1 percent, far below the ECB's near 2 percent target and reiterating the worries that it could stifle any serious economic growth. Markets are expecting another salvo of easing measures from Drag
  
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• Spanish court revokes Catalan independence motion

  02-12-2015 14:28 via news.yahoo.com
  
  The Spanish Constitutional Court on Wednesday said it has revoked Catalonia's motion in Parliament to begin the process to separate from the rest of Spain. Catalonia's Parliament passed a resolution in November setting out a plan to establish a republic within 18 months in the highly industrialized and populous northeastern region which accounts for about a fifth of Spain's economic output. Catalan leaders elected in September have specifically vowed to ignore the rulings of the Constitutional C
  
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• Britain's FTSE boosted, with pharmaceutical stocks in demand

  02-12-2015 14:28
  * Greene King leads mid-caps (Adds quote and details, updates prices)
  
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• China targets music industry output of $47 billion by 2020

  02-12-2015 14:11 via news.yahoo.com
  
  China aims to build up its music industry, targeting output of 300 billion yuan ($47 billion) by 2020, the state-owned Xinhua news agency reported on Wednesday. The goal is part of China's latest Five-Year Plan, a blueprint for economic and social development between 2016 and 2020. The plan would include cultivating large scale music companies, establishing standards for the industry and encouraging the industry to expand abroad, the State Administration of Press, Publication, Radio, Film and Te
  
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• Watch for U.S. recession, zero interest rates in China next year, Citi says

  02-12-2015 13:31 via news.yahoo.com
  
  By Jamie McGeever LONDON (Reuters) - The outlook for the global economy next year is darkening, with a U.S. recession and China becoming the first major emerging market to slash interest rates to zero both potential scenarios, according to Citi. As the U.S. economy enters its seventh year of expansion following the 2008-09 crisis, the probability of recession will reach 65 percent, Citi's rates strategists wrote in their 2016 outlook published late on Tuesday. "The cumulative probability of U.S.
  
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• RBC fourth-quarter earnings beat estimates on retail banking

  02-12-2015 13:14 via news.yahoo.com
  
  TORONTO (Reuters) - Royal Bank of Canada reported an 11 percent rise in fourth-quarter profit that topped market expectations, driven by gains at its personal, commercial banking and capital markets businesses. Earnings at its personal and commercial banking segment rose 10 percent to C$1.27 billion. Net income at its capital markets division jumped 38 percent, reflecting a lower effective tax rate and strength in its global markets businesses. But profits fell at both its wealth management and
  
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• Eurozone inflation stays low as ECB prepares for action

  02-12-2015 13:08 via news.yahoo.com
  
  LONDON (AP) — As if the European Central Bank needed any more incentive to inject another dose of stimulus into the 19-country eurozone economy, official figures on Wednesday showed inflation in the region remains worryingly low.
  
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