Finance news

• Facebook beats 2Q forecasts, user numbers grow, stock soars

  27-07-2016 23:18 via news.yahoo.com
  
  NEW YORK (AP) — Facebook's stock is trading higher after the world's biggest social media company handily surpassed Wall Street's expectations for the second quarter, barreling ahead on mobile advertisements, user growth and the next frontier — video.
  
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• Facebook trumps estimates on blistering ad sales growth

  27-07-2016 23:00 via news.yahoo.com
  
  (Reuters) - Facebook Inc's quarterly profit and revenue blew past Wall Street estimates as the company's hugely popular mobile app and a push into video attracted new advertisers and encouraged existing ones to spend more. Facebook shares rose 6.7 percent in after hours trading on Wednesday. Total advertising revenue surged 63 percent to $6.24 billion, beating the average analyst estimate of $5.80 billion, according to market research firm FactSet StreetAccount.
  
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• Yen slips as central banks' views leave stocks mixed

  27-07-2016 22:59 via news.yahoo.com
  
  The yen eased against the dollar on Wednesday after Japan unveiled a surprisingly large $265 billion stimulus package, while U.S. equity markets mostly declined following the Federal Reserve's decision to leave interest rates unchanged. The Fed said at the end of a two-day meeting of its policy-setting Federal Open Market Committee that near-term risks to the U.S. economy had diminished, a view that could open the door to a resumption of monetary policy tightening this year. The U.S. central ban
  
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• Distressed debt diva Lynn Tilton speaks out on ‘unfair’ SEC trial: Frankel

  27-07-2016 22:49
  
  NEW YORK (Reuters) - Lynn Tilton, the flamboyant financier sued by the Securities and Exchange Commission last March for allegedly defrauding investors in three distressed debt funds, accused the...
  
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• When politics blinded hedge fund managers: James Saft

  27-07-2016 22:33
  
  (Reuters) - Call it Obama derangement syndrome or call it principled objection to monetary and fiscal policy, but Republican-leaning equity hedge funds got their heads handed to them in 2008 and 2009.
  
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• Wall St. ends lower after Fed keeps rates unchanged

  27-07-2016 22:33 via news.yahoo.com
  
  Wall Street ended lower on Wednesday after the Federal Reserve left interest rates unchanged but opened the door to a possible rate increase later this year. The Fed had not been expected to move interest rates at its two-day meeting, ended on Wednesday, but investors have been anxious for hints about when an increase might come in light of concerns about fallout from Britain's vote in June to leave the European Union. "A rate increase is warranted this year, most likely at the end of the year,
  
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• Your Money: Before disaster strikes, know your benefits

  27-07-2016 22:28
  
  NEW YORK (Reuters) - Vacation warriors return from trips with lasting memories and great photos, and often some unwanted trophies - sprained ankles, tennis elbows, exotic intestinal bugs. Even...
  
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• Fed leaves rates unchanged, says risks to outlook reduced

  27-07-2016 22:21 via news.yahoo.com
  
  The Federal Reserve left interest rates unchanged on Wednesday but said near-term risks to the U.S. economic outlook had diminished, opening the door to a resumption of monetary policy tightening this year. The U.S. central bank said the economy had expanded at a moderate rate and job gains were strong in June. While Fed policymakers said they continued to closely monitor inflation data and global economic and financial developments, they indicated less worry about possible shocks that could pus
  
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• TSX ends barely lower as Fed cheer offset's oil gloom

  27-07-2016 22:13 via news.yahoo.com
  
  TORONTO (Reuters) - Canada's main stock index ended mildly lower on Wednesday, paring losses after the U.S. Federal Reserve said near-term economic risks had diminished, though a sharp drop in oil prices weighed on energy stocks. The Toronto Stock Exchange's S&P/TSX composite index unofficially closed down 3.46 points, or 0.02 percent, at 14,546.54. Six of its 10 main sectors fell. (Reporting by Alastair Sharp; editing by Diane Craft)
  
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• Fed's more upbeat tone suggests rate hike sometime this year

  27-07-2016 21:49 via news.yahoo.com
  
  WASHINGTON (AP) — The Federal Reserve said Wednesday that near-term risks to the U.S. economy have diminished, reviving the prospect that it will resume raising interest rates as soon as September.
  
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• Central bank views lift stocks worldwide, yen slips

  27-07-2016 21:48 via news.yahoo.com
  
  The yen eased against the dollar on Wednesday after Japan unveiled a surprisingly large $265 billion stimulus package, while U.S. equity markets rebounded following the Federal Reserve's decision to leave interest rates unchanged. The Fed said at the end of a two-day meeting of its policy-setting Federal Open Market Committee that near-term risks to the U.S. economy had diminished, a view seen as opening the door to a resumption of monetary policy tightening this year. The U.S. central bank said
  
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• UniCredit to ask authorities to investigate possible market abuse

  27-07-2016 21:28 via news.yahoo.com
  
  UniCredit will ask authorities to investigate possible market abuse in relation to media reports over its upcoming strategic review, which on Thursday affected its share price and that of two of its units, the Italian bank said in a statement. Shares in both UniCredit and its online broker Fineco fell 4 percent on Thursday as the Milan stock market gained 1 percent . Bank Pekao lost 3 percent.
  
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• Venezuela roils corporate profits around the globe

  27-07-2016 21:27 via news.yahoo.com
  
  U.S. companies operating in Venezuela have escalated the use of an accounting maneuver to insulate themselves from a worsening economic crisis in the South American country that has erased more than $10 billion in profits over the past 18 months. Deconsolidation means that Venezuela operations can largely no longer hurt or benefit a U.S. parent company's financial results. Often companies are taking a big one-time charge against earnings so that they can ring-fence what is left in Venezuela.
  
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• Fed leaves rates unchanged but says US economy improving

  27-07-2016 21:02 via news.yahoo.com
  
  The Federal Reserve on Wednesday left key interest rates untouched but acknowledged improved economic performance, suggesting a rate increase may be on the horizon in 2016. Despite weak job creation in May, the Federal Open Market Committee, which sets the monetary policy, said employment and economic growth had grown at a moderately since their mid-June meeting. "Near-term risks to the economic outlook have diminished," the FOMC said in announcing the outcome of the closely watched two-day meet
  
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• Wall Street recovers after Fed keeps rates unchanged

  27-07-2016 21:01 via news.yahoo.com
  
  Wall Street rebounded from earlier lows on Wednesday after the Federal Reserve left interest rates unchanged but opened the door to a resumption of monetary policy tightening this year. The Fed was not expected to move interest rates at its two-day meeting, ended on Wednesday, but investors have been anxious for hints about when an increase might come in light of concerns about fallout from Britain's vote in June to leave the European Union. "The statement is more constructive about the economy,
  
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• Fed keeps rates steady but sees less risk to US economy

  27-07-2016 20:53 via news.yahoo.com
  
  WASHINGTON (AP) — The Federal Reserve kept interest rates unchanged Wednesday but sounded a positive note: Near-term risks to the economy, the Fed said, have diminished.
  
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• South Africa will avoid recession in second quarter - central bank

  27-07-2016 20:46 via news.yahoo.com
  
  By Mfuneko Toyana JOHANNESBURG (Reuters) - South Africa will avoid a recession in the second quarter even though the economy shrank in the January-March period, as a recovery in mining and manufacturing is likely to lift growth in the April-June period, the central bank said on Wednesday. "The SARB (South African Reserve Bank) does not believe that a contraction in the second quarter is likely – a result that would tip the economy into a technical recession," Mminele said. "The reasons for
  
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• Harvard University endowment chief Stephen Blyth resigns

  27-07-2016 20:31
  
  BOSTON (Reuters) - Stephen Blyth, who was appointed to oversee Harvard University's endowment only 18 months ago, has resigned, the Ivy League school said on Wednesday, creating further uncertainty...
  
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• Investors chasing dividends find easy, but risky, pickings

  27-07-2016 20:18
  
  NEW YORK (Reuters) - Investors disappointed with tepid bond yields have been hunting for income in the stock market - boosting to near record highs the outperformance of dependable dividend paying...
  
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• US stock indexes slip; Apple jumps on strong earnings

  27-07-2016 20:16 via news.yahoo.com
  
  NEW YORK (AP) — Stocks were moving slightly lower in afternoon trading Wednesday as gains in technology stocks like Apple were offset by declines in consumer staples makers including Coca-Cola. Energy companies fell along with the price of crude oil. Investors are also working through the Federal Reserve's latest policy statement. The Fed didn't make any changes to interest rates but left the door open for increases later this year.
  
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• Fed keeps key interest rate steady but sees fewer risks

  27-07-2016 20:08 via news.yahoo.com
  
  WASHINGTON (AP) — The Federal Reserve is keeping interest rates unchanged while noting that near-term risks to the economy have diminished.
  
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• Fed keeps rates unchanged, says risks to outlook reduced

  27-07-2016 20:06 via news.yahoo.com
  
  By Lindsay Dunsmuir and Howard Schneider WASHINGTON (Reuters) - The Federal Reserve left interest rates unchanged on Wednesday but said near-term risks to the U.S. economic outlook had diminished, opening the door to a resumption of monetary policy tightening this year. While Fed policymakers said they continued to closely monitor inflation data and global economic and financial developments, they indicated less worry about possible shocks that could push the U.S. economy off course. "Near-term
  
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• Wall Street treads lower ahead of Fed rate decision

  27-07-2016 19:38 via news.yahoo.com
  
  Wall Street was lower on Wednesday as disappointing results from Coca-Cola and weak oil offset gains fueled by Apple, and ahead of the Federal Reserve's decision on interest rates. The Fed is scheduled to issue a statement at 2:00 p.m. ET (1800 GMT) after a two-day policy meeting, which began on Tuesday. Traders do not expect the Fed to pull the trigger even until June next year, according to CME Group's FedWatch tool.
  
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• McDonald's to create 5,000 jobs in Britain

  27-07-2016 19:27 via news.yahoo.com
  
  McDonald's Corp said on Wednesday it would create over 5,000 jobs in Britain by the end of 2017, in a sign of its commitment to the country despite the challenging economic conditions. Industry surveys have suggested that Britain's vote to leave the EU has hammered consumer confidence, although those retailers to report results since last month's referendum have not reported any sharp drop off in demand. "These remain challenging economic conditions but I'm pleased that, together with our franch
  
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• As Wall Street hits highs, some investors await transport catch-up

  27-07-2016 19:13 via news.yahoo.com
  With the Dow industrials and S&P 500 indexes setting new all-time records in the past month, some investors are waiting for a key group of transportation stocks to hit fresh highs as well before becoming more confident the rally will keep chugging along. Long seen as a barometer of the U.S. economy, the Dow Jones transport average is closely watched as part of the "Dow Theory," which tracks performance of both the industrials and the transports to confirm major trends in the stock market. Th
  
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• Insider trading by ex-banker's father becomes focus in U.S. trial

  27-07-2016 19:07 via news.yahoo.com
  
  The relationship between a former Wall Street investment banker charged for insider trading and his father, who traded on information about mergers he learned from him, took center stage at the start of the son's trial on Wednesday. Assistant U.S. Attorney Brooke Cucinella told jurors in Manhattan federal court that tips by Sean Stewart, an ex-banker at Perella Weinberg Partners and JPMorgan Chase & Co, enabled his father and another man to make over $1 million trading. The trial stems from
  
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• European shares rise helped by good earnings; Deutsche Bank slips

  27-07-2016 18:56 via news.yahoo.com
  European shares rose on Wednesday with the market underpinned by well-received earning updates from companies including Peugeot and LVMH, while Deutsche Bank fell after a poor update. The pan-European ...
  
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• Algeria to implement 'new growth model' to cope with oil price drop

  27-07-2016 18:52 via news.yahoo.com
  By Hamid Ould Ahmed ALGIERS (Reuters) - OPEC member Algeria says it will launch a new "economic growth model" for the next four years focussed on reforming the tax system to bring in more revenue and reduce dependence on energy exports. The plan is part of long-awaited moves to diversify the North African economy away from oil and gas, which account for 95 percent of of export revenues and 60 percent of the state budget. A sharp drop in global crude oil prices has pushed the government to cut sp
  
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• South Africa's rand, stocks edge up as investors see U.S. rates unchanged

  27-07-2016 18:37 via news.yahoo.com
  
  South Africa's rand traded slightly firmer against the dollar on Wednesday as investors speculated that the Federal Reserve would signal low rates for longer in the United States, boosting demand for high-yielding emerging markets. Traders and analysts said the Federal Open Market Committee (FOMC) would likely keep interest rates unchanged later on Wednesday, although a hawkish tone on the U.S. economy could feed expectations for hikes later in the year. "The rand's a little bit firmer just ahea
  
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• Steve Cohen bets $250 million on firm that uses algorithms

  27-07-2016 18:08
  
  BOSTON (Reuters) - Billionaire investor Steven A. Cohen is committing $250 million to a Boston-based investment firm that lets scientists, developers and students submit computerized investment...
  
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• Putin: Olympic ban on Russian athletes is result of political plot

  27-07-2016 18:04 via news.yahoo.com
  
  By Andrew Osborn and Denis Dyomkin MOSCOW (Reuters) - President Vladimir Putin said a shadowy political plot had succeeded in unfairly stripping some Russian sportspeople of the right to compete at the Rio Olympics over doping allegations and promised to defend Russia's tarnished sporting reputation. Addressing members of Russia's Olympic team in the Kremlin on Wednesday, Putin said a decision by global sporting organizations to ban Russian track-and-field athletes and sportspeople in everything
  
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• Wall Street gives up gains as Coke, weak oil drag

  27-07-2016 17:38 via news.yahoo.com
  
  Wall Street gave up early gains after disappointing earnings from Coca-Cola and weak oil prices offset a boost from Apple. Coke's revenue miss and forecast cut sent its stock down 3.4 percent, making it the biggest drag on the S&P and the Dow. Investors are also awaiting the U.S. Federal Reserve's decision on interest rate hikes later in the day.
  
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• U.S. durable goods orders data points to weak business spending

  27-07-2016 17:17 via news.yahoo.com
  
  New orders for U.S. manufactured capital goods rose less than expected in June amid weak demand for machinery and a range of other goods, suggesting a prolonged downturn in business spending. Business investment remains soft despite data ranging from retail sales to housing suggesting that the economy has regained speed after growth almost stalled early in the year. The Commerce Department said on Wednesday non-defense capital goods orders excluding aircraft, a closely watched proxy for business
  
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• Coca-Cola's revenue misses on weak China, LatAm markets

  27-07-2016 17:13 via news.yahoo.com
  
  Shares of the world's largest beverage maker, which also cut its full-year organic revenue growth forecast, fell 3.63 percent to a more than three-month low of $43.25 on Wednesday. Sales in China are being pressured as wholesalers bring down inventory levels in response to weakening consumer environment in the country, Chief Operating Officer James Quincey said on a post-earnings conference call. China's economy grew 6.7 percent in the second quarter from a year earlier, the slowest pace since t
  
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• Weak profits may prod Deutsche Bank to speed up restructuring

  27-07-2016 17:06 via news.yahoo.com
  
  Deutsche Bank acknowledged on Wednesday that it may be forced to push its restructuring faster, as it booked a 98-percent fall in profits in the second quarter. "If the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring," chief executive John Cryan said in a statement released with the results. Cryan is battling to convince markets and regulators that Deutsche is on course for recovery after it was described as a "ma
  
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• Iran sets presidential election for May 2017

  27-07-2016 16:51 via news.yahoo.com
  
  Iran will hold its next presidential election in May 2017, state news agencies said on Wednesday, a vote in which moderate President Hassan Rouhani may seek a second term to push ahead with reforms resisted by powerful hardliners. The Guardian Council, a body of Shi'ite Muslim clerics and jurists that oversees elections, said in a letter to the ministry that it had agreed on a date of May 19 proposed by the ministry, according to students news agency ISNA said. Rouhani last year struck a deal wi
  
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• StanChart names Jose Vinals as new Chairman after year-long search

  27-07-2016 16:48 via news.yahoo.com
  
  Standard Chartered has named former deputy governor of the Bank of Spain Jose Vinals as its new Chairman, ending a 16-month search for a new leader to continue a sweeping turnaround plan at the Asia-focused lender. Vinals will join the bank as Chairman designate on October 3 and succeed Peace on December 1, StanChart said on Wednesday. "José brings deep and extensive economic, political and regulatory experience of our markets and an exceptional grasp and understanding of the internationa
  
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• Resource shares, earnings beats lead TSX higher

  27-07-2016 16:38 via news.yahoo.com
  
  TORONTO (Reuters) - Canada's main stock index rose on Wednesday as gold miners and other resource issues gained and investors bought shares of companies that reported stronger-than-expected results. The most influential gainers included grocery chain Loblaw Cos Ltd , which rose 3.4 percent to C$73.28, and technology company CGI Group Inc , which advanced 3.5 percent to C$60.86, after both beat earnings expectations. But Toronto Star publisher Torstar Corp fell 3.6 percent to C$1.60 after reporti
  
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• Balancing act expected as divided Fed reviews US economy

  27-07-2016 16:35 via news.yahoo.com
  The Federal Reserve was not expected to change key interest rates on Wednesday at the conclusion of a closely watched two-day meeting on monetary policy. The Federal Open Market Committee, the Fed's policy board, has over the last eight months been Janus-faced and ambivalent, alternately seeing both strength and weakness in the assortment of economic indicators it reviews at each of its meetings. "I don't think they're going to raise rates at all this year," said Joseph Gagnon, senior fellow at
  
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• Global stocks jump on Tokyo stimulus, UK growth

  27-07-2016 16:19 via news.yahoo.com
  
  Global shares mostly rallied Wednesday after Tokyo launched a massive stimulus package with sentiment also cheered by accelerating economic growth in Britain and upbeat company results. Awaiting the US Federal Reserve's interest rate decision later, Wall Street won an opening boost from Apple, whose third-quarter earnings topped expectations. London stocks drove 0.7 percent higher as data showed the British economy grew by 0.6 percent in the second quarter, after 0.4 percent expansion in the pre
  
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• Pending home sales rise slightly in June

  27-07-2016 16:01 via news.yahoo.com
  Contracts to buy previously owned U.S. homes rose far less than expected in June, another sign that a lack of inventory is crimping activity despite mortgage rates being at near-record lows. The National Association of Realtors said on Wednesday its pending home sales index, based on contracts signed last month, nudged up 0.2 percent to 111.0. The housing market has continued to strengthen amid historically low mortgage rates and almost six years of monthly job gains.
  
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• EU abandons budget fines against Spain, Portugal

  27-07-2016 16:01 via news.yahoo.com
  
  The European Commission on Wednesday backed away from slapping fines on Spain and Portugal for running high deficits, avoiding what would have been a landmark move to impose tough budget rules. Under bloc regulations, the EU executive could have imposed fines of up to 0.2 percent of national gross domestic product (GDP) against Madrid and Lisbon -- but instead showed clemency amid growing anti-Brussels sentiment highlighted by Britain's Brexit vote. "Sanctions, even symbolic ones, would not have
  
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• Apple powers Wall Street; all eyes on Fed

  27-07-2016 15:56 via news.yahoo.com
  
  Wall Street was trading higher on Wednesday morning, bolstered by strong results from Apple, and ahead of the Federal Reserve's decision on interest rate hikes. Apple shares soared 7.4 percent to $104.47 after the company sold more iPhones than expected in the third-quarter and gave an upbeat current-quarter forecast. The stock boosted all three major indexes and helped the S&P 500's information technology index rise 1.1 percent, outpacing the other 10 major sectors.
  
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• From herdsmen to central bankers, southern Africa counts drought cost

  27-07-2016 15:39 via news.yahoo.com
  
  By Ed Stoddard SEKOMA, Botswana (Reuters) - Molefi Ramantele, a small-scale livestock farmer who ekes out a living in Botswana's arid scrubland, lost a third of his cattle in the drought that has scorched southern Africa. Farmers, game reserves and central bankers across southern Africa are among those set to count the cost for years to come of the drought that wiped out livestock, pushed up food prices and caused power shortages and protests. The 2015/2016 El Nino weather system, the Pacific Oc
  
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• Tepid U.S. core capital goods orders point to weak business spending

  27-07-2016 15:24 via news.yahoo.com
  
  New orders for U.S. manufactured capital goods rose less than expected in June amid weak demand for machinery and a range of other goods, suggesting that business spending will remain subdued for a while. Business investment remains soft despite data ranging from retail sales to housing suggesting that the economy has regained speed after growth almost stalled early in the year. The Commerce Department said on Wednesday non-defense capital goods orders excluding aircraft, a closely watched proxy
  
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• Saudi's SABIC extends earnings slump as Q2 net profit falls 23.2 pct

  27-07-2016 15:08 via news.yahoo.com
  Saudi Basic Industries Corp (SABIC), one of the world's largest petrochemicals groups, reported a 23.2 percent drop in second-quarter net profit on Wednesday, extending a earnings slump as lower sales prices continued to weigh. SABIC made a net profit of 4.74 billion riyals ($1.26 billion) in the three months to June 30, down from 6.17 billion riyals in the year-earlier period, the company said in a bourse statement. SABIC, which is 70 percent state-owned, attributed the profit fall to lower ave
  
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• UAE bank NBAD expects low single-digit revenue, earnings growth in 2016

  27-07-2016 14:49 via news.yahoo.com
  National Bank of Abu Dhabi , the emirate's largest lender by assets, expects low single-digit revenue and earnings growth for 2016, Chief Financial Officer James Burdett said on a conference call on Wednesday. NBAD Chief Executive Alex Thursby said on the same call he would not be part of the leadership of the bank created after the merger of NBAD and rival First Gulf Bank (FGB). Merging NBAD and FGB, as recommended by the boards of the two lenders, would create one of the largest banks by asset
  
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• UAE's Pacific Controls in bank talks about 1.4 billion dirhams debt

  27-07-2016 14:47 via news.yahoo.com
  By Tom Arnold, David French and Hadeel Al Sayegh DUBAI (Reuters) - Pacific Controls, a Dubai-based technology company, is in talks with banks about restructuring debts of 1.4 billion dirhams ($381 million), sources told Reuters, one of the largest firms to have to do so since the emirate's economy began to slow. It is also set to be the highest-profile example to date of a company receiving assistance from a special mechanism set up by the United Arab Emirates' banking federation to help firms s
  
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• Futures rise as Japan stimulus boosts global equities

  27-07-2016 13:57 via news.yahoo.com
  
  (Reuters) - Canada's main stock index was set to open higher on Wednesday, tracking global equities after Japanese Prime Minister Shinzo Abe unveiled a surprisingly large $265 billion stimulus package to reflate Japan's economy. The Bank of Japan is expected to match the measures with monetary stimulus at its rate review meeting on Friday. Investor focus was also on quarterly results from major companies including Barrick Gold Corp , Goldcorp Inc and Suncor Energy Inc later in the day. September
  
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• Deutsche Bank chief warns of deeper cuts after quarterly revenue drop

  27-07-2016 13:52 via news.yahoo.com
  
  By Arno Schuetze and Jonathan Gould FRANKFURT (Reuters) - Deutsche Bank warned it may need deeper cost cuts to turn itself around, after revenue fell sharply in the second quarter due to challenging markets and low interest rates. "If the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring," Chief Executive John Cryan said on Wednesday. "We will not deviate from tough decisions just to flatter earnings in the short te
  
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