Finance news

• Wall Street slides with Exxon, oil; Chipotle dips after close

  02-02-2016 23:29 via news.yahoo.com
  
  Shares of Exxon fell 2.2 percent to $74.59 after the oil major reported its smallest quarterly profit in more than a decade, forecast a 25-percent drop in capital spending from 2015 levels and suspended share repurchases. With Exxon, "not only did the earnings disappoint people, but the fact that they slashed capex so much and they (suspended) their share repurchase program. It's a good indication that one more large oil company is not seeing an improvement in the environment," said Michael O'Ro
  
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• Canadian dollar falls as crude oil prices, stock market losses weigh

  02-02-2016 23:23 via news.yahoo.com
  
  Oil prices sank for a second day as hopes for a deal between OPEC and Russia on output cuts faded and concerns rose about mild winter weather dampening demand. The loonie, as Canada's currency is colloquially known, had strengthened on Monday despite the lower oil price. Canada's main index fell 1.8 percent, with its energy sector off 3.5 percent.
  
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• U.S. stock market reforms suggested to prevent market chaos

  02-02-2016 23:11 via news.yahoo.com
  
  In the first hour of trading on Aug. 24, concerns over the health of China's economy led to sharp price moves that triggered more than 1,000 trading halts in hundreds of stocks and exchange-traded funds, according to the SEC. Some retail investors ended up getting worse prices than they otherwise would have, said Stacey Cunningham, chief operating officer of Intercontinental Exchange Inc's New York Stock Exchange.
  
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• Wall Street sells off as Exxon Mobil, oil weigh

  02-02-2016 22:51 via news.yahoo.com
  
  Shares of Exxon fell 2.2 percent to $74.59 after the oil major reported its smallest quarterly profit in more than a decade, forecast a 25-percent drop in capital spending from 2015 levels and suspended share repurchases. With Exxon, "not only did the earnings disappoint people, but the fact that they slashed capex so much and they (suspended) their share repurchase program. It's a good indication that one more large oil company is not seeing an improvement in the environment," said Michael O'Ro
  
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• Stocks sink, weighed down by another drop in price of oil

  02-02-2016 22:43 via news.yahoo.com
  
  NEW YORK (AP) — Another steep drop in the price of oil weighed on global markets Tuesday. Investors remained deeply concerned about the global economy following this week's disappointing Chinese and U.S. manufacturing data.
  
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• Here’s How Bad 2016 Has Been for Investors

  02-02-2016 22:03 via news.yahoo.com
  
  More than nine in 10 investors on the platform lost money in the stock market in January. Openfolio, which has 60,000 users with roughly 25,000 connected brokerage accounts, allows users to compare the performance of their personal investment portfolios with others in the network. The site found that investors who experienced losses saw an average decline of 6.3 percent (the overall market declined about 5 percent).
  
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• Dollar tumbles against yen on oil drop, risk aversion

  02-02-2016 22:00 via news.yahoo.com
  
  By Sam Forgione NEW YORK (Reuters) - The U.S. dollar was set to post its biggest one-day decline against the yen in over six weeks on Tuesday, while also edging lower against the euro, after a drop in oil prices added to concerns about global economic growth. Oil prices fell sharply for the second straight day. Analysts said the weakness intensified worries about slowing global growth since it could suggest falling global demand for the commodity as well as the potential for negatively impacted
  
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• Yahoo to say it is exploring 'strategic alternatives': CNBC, citing Dow Jones

  02-02-2016 21:32 via news.yahoo.com
  
  (Reuters) - Yahoo Inc is expected to say it is exploring "strategic alternatives" after markets close on Tuesday, CNBC reported, citing Dow Jones. Yahoo, which is also scheduled to reports fourth-quarter results after the markets close, declined to comment. Chief Executive Marissa Mayer is set to reveal cost-cutting plans that include slashing 15 percent of the company's workforce, or roughly 1,600 jobs, and closing several business units, the Wall Street Journal reported on Monday. (Reporting b
  
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• Roche eyes acquisition of Pacific Biosciences: sources

  02-02-2016 21:21
  
  (Reuters) - Roche Holding AGhas in recent weeks approached Pacific Biosciences of California Incto discuss acquiring the U.S. company, spurred by interest in its advanced gene-sequencing...
  
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• Exxon, tops in stock buybacks, now saving its cash

  02-02-2016 21:20 via news.yahoo.com
  
  Few phenomena in the stock market are more predictable than oil major Exxon Mobil Corp's massive share buyback programme. It surprised investors on Tuesday by dramatically ratcheting back share repurchases, and for the first time in 15 years, Exxon Mobil will only buy back shares to offset dilution as opposed to return cash to shareholders. Exxon reported its smallest quarterly profit in more than a decade and said it will cut 2016 spending by one-quarter and suspend share repurchases.
  
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• LVMH rings up record sales, operating profit jumps

  02-02-2016 21:05 via news.yahoo.com
  
  Luxury leader LVMH defied global economic gloom last year to ring up record annual sales of 35.67 billion euros ($38.9 billion), while operating profit soared. The maker of Louis Vuitton handbags and Moet & Chandon champagne said Tuesday that its net profit for 2015 came in at 3.57 billion euros. Operating profit rose by 16 percent to 6.6 billion euros in the group whose stable of luxury brands also includes Givenchy and Kenzo.
  
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• Rouhani invites U.S. firms to invest in changing Iranian economy

  02-02-2016 20:54 via news.yahoo.com
  
  By Sam Wilkin DUBAI (Reuters) - Iran has no problem with U.S. companies investing in its economy and creating joint ventures, President Hassan Rouhani said on Tuesday, and he called for foreign investment and diversification away from oil. The president said the lifting of sanctions last month under a nuclear deal with world powers would see foreign investment turn Iran into an exporter of manufactured goods and ease the economy's reliance on oil exports.
  
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• EU seeks to bring U.S. trade talks towards a close by summer: trade commissioner

  02-02-2016 20:50 via news.yahoo.com
  
  The European Union aims to bring free trade negotiations with the United States towards a close by the summer, a necessary step if a deal is to be clinched before a change of president in the United States. The two sides are trying to agree on the Transatlantic Trade and Investment Partnership (TTIP), a free trade deal that could deliver economic benefits of more than $100 billion for both economies, each searching for growth in the face of a Chinese economic slowdown. After more than two years
  
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• Stocks in steep declines as oil, banks weigh on market

  02-02-2016 20:35 via news.yahoo.com
  
  NEW YORK (AP) — Falling oil prices continued to weigh on U.S. and global stock markets as investors remained deeply concerned about the global economy following this week's disappointing Chinese and U.S. manufacturing data. Google's parent company, Alphabet, overtook Apple as the world's most valuable publicly traded company.
  
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• U.S. CEOs unleash recession fears in earnings calls

  02-02-2016 20:03 via news.yahoo.com
  
  By David Randall NEW YORK (Reuters) - U.S. companies are growing more concerned about the prospects of a recession in the year ahead for the first time since the end of the financial crisis. Some 92 companies have discussed a U.S. recession in their earnings calls, according to Thomson Reuters data. While nearly all companies that have discussed recession say that U.S. consumers continue to look healthy, many are growing concerned that the steep declines in energy prices and job cuts in the indu
  
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• Security officials, protesters clash during Pakistan strike

  02-02-2016 19:53 via news.yahoo.com
  
  By Syed Raza Hassan KARACHI (Reuters) - Pakistani security personnel on Tuesday clashed with marchers protesting government plans to privatize the ailing national airline, a skirmish that a hospital official said killed at least two protesters and injured eight. Protesters said paramilitary forces fired after a confrontation as security forces tried to block the strikers nearing the airport in the southern economic hub of Karachi. The violence came as hundreds of airline employees held the lates
  
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• Ferrari gives cautious forecast for 2016, shares slide

  02-02-2016 19:40 via news.yahoo.com
  
  By Agnieszka Flak MILAN (Reuters) - Italian carmaker Ferrari gave a cautious outlook for its financial performance this year, its first as a standalone company, as growth in sales of its supercars is expected to slow, pushing its shares to record lows. Ferrari's New York-listed shares fell more than 14 percent to their lowest since the maker of red cars with the prancing horse logo was listed on Wall Street last October. Ferrari, spun off from Fiat Chrysler Automobiles at the start of the year,
  
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• WestJet says weak Alberta economy weighing on demand

  02-02-2016 19:34 via news.yahoo.com
  
  WestJet Airlines Ltd's quarterly revenue per available seat mile, a key measure of profitability, is poised for its steepest decline since 2009, as Alberta's weakening economy weighs on leisure and business travel from the western Canadian province. Alberta, known for its oil-rich resources, has been hit by a near 70 percent plunge in oil prices since June 2014. Airlines in western Canada that were once blooming in the oil-rich region have been recording a significant decline in passenger traffi
  
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• Venezuela ex-ministers seek probe into $300 billion in lost oil revenue

  02-02-2016 19:31 via news.yahoo.com
  
  By Eyanir Chinea and Corina Pons CARACAS (Reuters) - Two former cabinet ministers under late Venezuelan President Hugo Chavez are seeking an investigation to trace the fate of some $300 billion allegedly embezzled during the past decade through a complex currency control system. Hector Navarro, who ran five ministries under Chavez's rule, will ask a state ethics council to review the operations of the 13-year-old exchange control mechanism that opposition leaders have described as a "corruption
  
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• Mersch says no constraints on ECB in acting - WSJ

  02-02-2016 19:23 via news.yahoo.com
  
  The European Central Bank does not face any limitations if it decides to act, a senior policy maker told the Wall Street Journal, warning that there could be a risk of low oil prices becoming entrenched. "There are several factors which have intensified," Yves Mersch, who sits on the ECB's Executive Board, told the paper, referring to the weeks since December. "One is the oil price ... That is something to assess - the volatility - whether you look through it or whether there is a risk of it bec
  
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• Rouhani says no problem with U.S. firms entering Iran

  02-02-2016 19:21 via news.yahoo.com
  
  By Sam Wilkin DUBAI (Reuters) - Iran has no problem with U.S. companies investing in its economy and creating joint ventures, Iranian President Hassan Rouhani said in a televised interview on Tuesday in which he urged foreign investment and diversification away from oil. Major international companies are rushing to establish a position in Iran as it re-opens for business after the lifting of sanctions over its nuclear program. "If U.S. companies are willing to come and invest in Iran, to bring m
  
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• Russian minister says budget 'critical', calls for privatisation

  02-02-2016 19:18 via news.yahoo.com
  
  Russia can no longer afford to wait for a market rebound, its economy minister said Tuesday, calling the budget situation "critical" and urging to restart a stalled privatisation drive. The government is looking for ways to raise funds for the budget as its earnings dwindle due to low oil prices, with voices increasingly urging the sale of minority stakes in state-owned companies, carrying out plans put on hold since President Vladimir Putin returned to the Kremlin. Speaking at a ministerial mee
  
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• Fed's George sees more rate hikes coming despite market swings

  02-02-2016 19:12 via news.yahoo.com
  
  "My view is that the committee should continue the gradual adjustment of moving rates higher," Kansas City Fed Bank President Esther George, who has a vote this year on the U.S. central bank's rate-setting committee, said in prepared remarks. George said her view could change if there were a "substantial shift" in the outlook for the U.S. economy and that she was paying attention to financial market volatility as well as the possibility that job losses in the U.S. energy sector could act as a dr
  
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• Wall Street extends selloff as falling oil weighs

  02-02-2016 19:08 via news.yahoo.com
  
  U.S. stocks extended their selloff in early afternoon trading on Tuesday as falling oil prices heightened concerns regarding the health of the global economy and investors sought safer investments. Shares of Exxon fell 2.4 percent after the oil major reported its smallest quarterly profit in more than a decade. "We still haven't broken the correlation between oil and equities and we are yet to find a bottom in oil prices," said Jeff Carbone, co-founder of Cornerstone Financial Partners in Charlo
  
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• U.S. January auto sales stronger than expected

  02-02-2016 19:00 via news.yahoo.com
  
  U.S. auto sales appeared to fare better than expected in January as the industry benefited from low gasoline prices, easy credit and moderate economic growth, preliminary results showed on Tuesday. Ford Motor Co's U.S. sales chief, Mark LaNeve, said the last five days of January were strong, helping overcome the snowstorm's effects. General Motors Co, said it expected overall U.S. January sales of 17.5 million vehicles on a seasonally adjusted annualized basis, compared with 17.4 million forecas
  
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• Russian oligarchs most likely buyers in Putin's new privatization plan

  02-02-2016 18:51 via news.yahoo.com
  
  By Margarita Papchenkova and Olga Popova MOSCOW (Reuters) - Russian oligarchs are the most likely potential buyers of the stakes in some of the country's largest companies that President Vladimir Putin wants to sell. The Kremlin said on Tuesday foreign investors were welcome to participate in the privatization announced the day before, which has been driven by an economic crisis brought on by low oil prices. Two senior government officials said the plan may only raise between 50 and 80 percent o
  
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• European equities hammered as oil pushes BP into loss

  02-02-2016 18:26 via news.yahoo.com
  
  European stock markets tumbled Tuesday as BP's vast annual earnings loss rattled an energy sector already battered by sliding oil prices.
  
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• Wednesday preview: GSK reports fourth quarter earnings

  02-02-2016 18:06 via news.yahoo.com
  
  (ShareCast News) - GlaxoSmithKline on Wednesday reports its fourth quarter earnings and a trading update on its 2015 full year results.
  
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• U.S. defense budget focuses on changing security environment: Carter

  02-02-2016 18:05 via news.yahoo.com
  
  U.S. Defense Secretary Ash Carter said on Tuesday the Pentagon would seek a $582.7 billion defense budget next year and reshape its spending priorities to reflect a new strategic environment marked by Russian assertiveness and the rise of Islamic State. Carter, speaking to the Economic Club of Washington, said the Pentagon's funding request would be in line with last year's congressional budget deal but spending would be refocused to address five big challenges facing the U.S. military: Russia,
  
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• Iran should diversify economy even if oil rises: Rouhani

  02-02-2016 17:44 via news.yahoo.com
  
  The fall in oil prices has put pressure on Iran, but there is also opportunity, Iranian President Hassan Rouhani said on Tuesday, urging diversification in the economy. "Of course the fall in oil prices has put pressure on us, but besides that we can see an opportunity," he said in an interview aired on state TV. "Even if the oil price rises, we should rely more on non-oil exports," he said.
  
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• Oil crisis takes shine off Azerbaijan's lavish sports events

  02-02-2016 16:40 via news.yahoo.com
  
  When oil exporter Azerbaijan signed up to host its first ever Formula One Grand Prix this year along an esplanade in its capital, the government promoted it as an opportunity to showcase the country's new confidence. "It would be better if the government used this money on local businesses. Azerbaijan's penchant for lavishly hosting high-profile events - previous examples were the Eurovision Song Contest in 2011 and the inaugural European Games last year - has prompted questions about whether th
  
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• WestJet profit falls below estimates as Alberta economy weakens

  02-02-2016 16:34 via news.yahoo.com
  
  Canada's WestJet Airlines Ltd reported a smaller-than-expected quarterly profit, hurt by its large exposure to Alberta, where the economy is weakening. Alberta, known for its oil-rich resources, has been hit by a near 70 percent plunge in oil prices since June 2014. Airlines in western Canada that were once blooming in the oil-rich region have been recording a significant decline in passenger traffic to and from and within Alberta, pushing WestJet to focus more on eastern Canada.
  
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• GM January U.S. sales up slightly, Ford's down

  02-02-2016 16:34 via news.yahoo.com
  
  U.S. auto sales appeared to fare better than expected in January, early returns showed on Tuesday, as the industry benefited from low gasoline prices, easy credit and moderate economic growth. Ford Motor Co's U.S. sales chief, Mark LaNeve, said the last five days of the month were strong, helping overcome the snowstorm's effects. General Motors Co , the top-seller in the U.S. market, said its sales were up 0.5 percent.
  
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• Italian cheese firm sells Parmesan-backed bond

  02-02-2016 16:23 via news.yahoo.com
  
  An Italian dairy cooperative has sold bonds backed by Parmesan cheese, the company said on Tuesday, a rare example of one of the country's plethora of small firms raising funding on capital markets. Three years of recession have choked bank lending and Prime Minister Matteo Renzi's government is trying to encourage firms to raise money elsewhere and take advantage of a tentative economic recovery. More than 95 percent of Italian companies have fewer than 10 employees and traditionally rely on ba
  
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• BP reports 91 percent plunge in fourth quarter earnings

  02-02-2016 16:17 via news.yahoo.com
  
  LONDON (AP) — BP's fourth-quarter earnings plunged 91 percent amid sharp declines in oil prices as the British energy company continued to make provision for the Deepwater Horizon disaster in the Gulf of Mexico and streamline operations.
  
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• Russia's crisis produces a paradox: surging luxury car sales

  02-02-2016 16:15 via news.yahoo.com
  
  By Gleb Stolyarov and Jack Stubbs MOSCOW (Reuters) - As Russia wrestles with an economic crisis, more and more Porsches and Rolls-Royces are appearing on its roads. Sales of Porsche, Bentley, Rolls-Royce and Lexus cars all rose last year, even as Russia sank into recession. "It's bizarre," said IHS Automotive analyst Tim Urquhart.
  
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• Wall Street opens lower as oil prices continue to weigh

  02-02-2016 16:00 via news.yahoo.com
  
  Wall Street opened lower on Tuesday as falling oil prices weighed on energy shares. Oil prices were down 5 percent as hopes for a deal between OPEC and Russia on output cuts faded with Goldman Sachs saying it was "highly unlikely". The stock weighed the most on the S&P 500 energy index.
  
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• Ex-vice president's office raided as Nigeria's anti-corruption sweep widens

  02-02-2016 15:59 via news.yahoo.com
  
  The office of Nigeria's former vice president Namadi Sambo was raided on Saturday by the Economic and Financial Crimes Commission (EFCC), a source at the agency said on Tuesday. Sambo served under the previous president Goodluck Jonathan, and is the latest high-profile official to be investigated for the corruption that flourished under that administration. "The office of the former Vice President was raided by officials of the EFCC in relation to an ongoing investigation.
  
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• Pfizer earnings fall but tops Street 4Q forecasts

  02-02-2016 15:57 via news.yahoo.com
  
  Pfizer Inc.'s fourth-quarter profit fell by half due to higher costs for production, administration and restructuring, yet the world's second-biggest drugmaker managed to beat Wall Street expectations.
  
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• Energy sector leads another decline in stocks as oil falls

  02-02-2016 15:38 via news.yahoo.com
  
  NEW YORK (AP) — Energy companies and banks are leading an early decline on Wall Street as prices for oil and natural gas take another tumble.
  
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• In Cuba, racial inequality deepens with tourism boom

  02-02-2016 15:26 via news.yahoo.com
  
  By Chris Arsenault HAVANA (Thomson Reuters Foundation) - As warming relations with the United States bring new money and tourists to Havana, some black Cubans like Miguel Campuzano Perez say racial inequalities are widening and they are being left out of a potential capitalist boom. Cuba's economy grew by 4 percent in 2015 and more than 3.5 million tourists visited the island in the year Washington and Havana restored diplomatic ties, ending more than five decades of Cold War animosity. "The bla
  
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• Magic Leap raises $793.5 million in funding round led by Alibaba

  02-02-2016 15:09
  
  (Reuters) - Magic Leap Inc, a startup focused on augmented reality technology, said on Tuesday it had raised $793.5 million in a funding round led by Chinese ecommerce giant Alibaba Group Holding Ltd...
  
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• UPS profit soars above expectations, delivers strong outlook

  02-02-2016 14:45 via news.yahoo.com
  
  ATLANTA (AP) — UPS's soared past Wall Street's expectations for the fourth quarter and the delivery company issued strong guidance for the year.
  
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• Pentagon reshaping spending amid changing security environment: U.S. defense chief

  02-02-2016 14:44 via news.yahoo.com
  
  Defense Secretary Ash Carter said on Tuesday the Pentagon would seek a $582.7 billion defense budget next year and reshape its spending priorities to reflect a new strategic environment marked by Russian assertiveness and the rise of Islamic State. Carter, speaking to the Economic Club of Washington, said the Pentagon's funding request would be in line with last year's congressional budget deal but spending would be refocused to address five big challenges facing the U.S. military: Russia, China
  
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• German new car sales up 3.0% in January: federation

  02-02-2016 14:18 via news.yahoo.com
  
  New car registrations in Germany, a key indicator of demand in Europe's top economy, rose in January, data showed on Tuesday. A total of 218,400 new cars were registered last month, an increase of three percent compared with the figure for the same month in 2015 and the highest level for January since 2008, according to data compiled by the automakers' federation VDA. "The German car market got off to a good start in the new year, continuing on from the trend seen in recent months," said VDA pre
  
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• GSK and J&J back $1 billion biotech spin-off from Index Ventures

  02-02-2016 14:13
  
  LONDON (Reuters) - Index Ventures, an early investor in technology hits like Skype and Dropbox, is spinning off its biotech portfolio into a new $1 billion (695 million pounds) business, with backing...
  
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• Pfizer forecasts 2016 revenue, earnings below estimates

  02-02-2016 13:51 via news.yahoo.com
  
  (Reuters) - U.S. drugmaker Pfizer Inc , which is in the process of buying Botox-maker Allergan Plc for $160 billion (111.05 billion pound), forecast 2016 revenue and earnings below analysts' estimates, citing generic competition and a strong dollar. The company said it expects reported revenue of $49 billion-$51 billion for the full year and adjusted earnings of $2.20-$2.30 per share. Analysts on average were expecting revenue of $52.49 billion and earnings of $2.36 per share.
  
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• Yen rises as global mood sours again

  02-02-2016 13:47 via news.yahoo.com
  
  By Patrick Graham LONDON (Reuters) - The yen inched higher on Tuesday as another drop in oil and stock markets sent investors back to traditional safe havens, hammering commodity-dependent currencies in the process. The Australian and New Zealand dollars both sank almost 1 percent in midday trade in Europe, while the Canadian dollar and Norwegian crown - both heavily dependent on oil revenues for capital inflows - fell by more than half a percent. Constantin Bolz, director for FX strategy with U
  
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• Futures lower on weak oil prices

  02-02-2016 13:41 via news.yahoo.com
  
  (Reuters) - Canada's main stock index looked set to start on a lower note on Tuesday after a sharp drop in oil prices triggered caution among investors. Oil prices fell more than 3 percent, dented by worries about the demand outlook and rising supply, while hopes for a deal between OPEC and Russia on output cuts faded. March futures on the S&P TSX index were down 0.74 percent at 7:15 a.m. ET. No major economic events are scheduled for the day . ...
  
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• Futures slump as oil prices fall further

  02-02-2016 13:25 via news.yahoo.com
  
  * Oil prices were down about 3 percent as hopes for a deal between OPEC and Russia on output cuts faded with Goldman Sachs saying it was "highly unlikely". * Investors were also concerned about a China-led global economic slowdown and the pace of rate hikes by the U.S. Federal Reserve. * Adding to concerns, consumer saving from cheap gasoline prices have failed to translate into higher spending as U.S. consumers increase their savings and choose to pay down debt rather than buy big-ticket items.
  
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