Finance news

• Some EU states wanted longer Russia sanctions ahead of Trump

  15-12-2016 23:57 via news.yahoo.com
  
  BRUSSELS (Reuters) - Some EU leaders sought to roll over economic sanctions against Russia for 12 months before a summit on Thursday agreed to a standard six-month renewal, summit chair Donald Tusk told a news conference. Diplomats said some hardliners who want to punish Moscow for its action in Ukraine were concerned that U.S. President-elect Donald Trump could seek to ease pressure on Russia when he takes office next month and so wanted a longer sanctions renewal. Tusk said it was too early fo
  
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• Alaska man charged with evading sanctions on Iran, money laundering

  15-12-2016 23:53 via news.yahoo.com
  
  Zong was named as the sole defendant in a 47-count indictment charging him with conspiracy to violate the International Emergency Economic Powers Act, Iranian Transactions and Sanctions Regulations, and money laundering. A federal public defender representing Zong, Rich Curtner, said he did not have an immediate comment because he had not yet met with Zong. For his work, his Iranian associates paid Zong between $10 million to $17 million, the Justice Department said.
  
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• Study: Repealing Obama health law cuts taxes for wealthy

  15-12-2016 23:09 via news.yahoo.com
  
  WASHINGTON (AP) — Republicans may be handing wealthy Americans a big tax cut by repealing President Barack Obama's health care law, according to a study released Thursday that spells out potential economic pitfalls behind the election-year slogans.
  
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• TSX rises with financials as gold miners slump

  15-12-2016 23:07 via news.yahoo.com
  
  By Fergal Smith TORONTO (Reuters) - Canada's main stock index rose on Thursday, helped by broad gains for financial stocks a day after the Federal Reserve hiked interest rates and struck a hawkish note on further increases, a move which weighed on Canadian gold miners. The Toronto Stock Exchange's S&P/TSX composite index closed up 21.13 points, or 0.14 percent, at 15,218.31, while U.S. stocks continued to hover near record levels as investors viewed the Fed's interest rate outlook as a sign
  
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• Yahoo under scrutiny after latest hack, Verizon seeks new deal terms

  15-12-2016 22:56 via news.yahoo.com
  
  By Greg Roumeliotis and Jessica Toonkel NEW YORK (Reuters) - Yahoo Inc came under renewed scrutiny by federal investigators and lawmakers on Thursday after disclosing the largest known data breach in history, prompting Verizon Communications Inc to demand better terms for its planned purchase of Yahoo's internet business. Verizon, which agreed to buy Yahoo's core internet business in July for $4.8 billion, is now trying to persuade Yahoo to amend the terms of the acquisition agreement to reflect
  
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• Wall Street rises, led by banks; Dow brushes against 20,000

  15-12-2016 22:38 via news.yahoo.com
  
  U.S. stocks rose on Thursday, led by gains in bank shares, a day after the Federal Reserve raised interest rates for the second time in nearly a decade. The Fed sees three rate hikes next year instead of the two foreseen in September, partly as a result of the fiscal stimulus expected to hit under President-elect Donald Trump. Trump's spending plans could trigger inflation and bring about higher interest rates, making banks a likely winning sector in the new administration.
  
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• Wall Street advances as bank shares climb

  15-12-2016 22:03 via news.yahoo.com
  
  NEW YORK (Reuters) - U.S. stocks rose on Thursday, led by gains in bank shares, a day after the Federal Reserve raised interest rates for the second time in nearly a decade.
  
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• Rates surging 5 weeks post-election; will home sales weaken?

  15-12-2016 22:01 via news.yahoo.com
  
  WASHINGTON (AP) — Mortgage rates are still surging five weeks after Donald Trump's election victory. Will higher rates weaken prospective buyers' confidence next year and dampen home sales?
  
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• Lilly eases investors' jitters with strong 2017 forecast

  15-12-2016 21:49 via news.yahoo.com
  
  Eli Lilly and Co, in a move that appeared to ease investor concerns after the failure of its high-profile Alzheimer's drug, on Thursday provided a 2017 forecast above Wall Street estimates and expressed confidence in recently launched products and those in development. Lilly shares jumped 5.7 percent to $71.51. "We are encouraged by Lilly's 2017 financial guidance," Leerink Partners analyst Seamus Fernandez said in a research note.
  
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• U.S. tax reform proposal on border trade faces growing opposition

  15-12-2016 20:37 via news.yahoo.com
  
  A sweeping tax reform proposal meant to boost U.S. manufacturing faces mounting pressure from industries that rely heavily on imported goods as President-elect Donald Trump and congressional Republicans work to finalize new tax legislation. A lynchpin of the House Republican "Better Way" agenda and viewed favorably by Trump's team, the policy would help manufacturers by exempting export revenues from corporate taxes. House Republicans hope to persuade Trump to back the policy as a means to fulfi
  
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• EU agrees to extend Russia sanctions until mid-2017

  15-12-2016 20:25 via news.yahoo.com
  
  By Gabriela Baczynska BRUSSELS (Reuters) - European Union leaders agreed on Thursday to extend the bloc's main economic sanctions against Russia over the turmoil in Ukraine for six months until mid-2017, diplomats said. The decision was expected and the formal process to extend the sanctions on Russia's defense, energy and financial sectors will take place early next week, they said. "We welcome unanimous decision by the EU to extend economic and sectoral sanctions against Russia," Ukraine's Pre
  
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• Verizon considers changing Yahoo deal after latest breach

  15-12-2016 19:39 via news.yahoo.com
  
  Verizon Communications Inc is looking at ways to modify its $4.8 billion deal to buy Yahoo Inc's core internet business after the technology company disclosed a second massive data breach, sources told Reuters on Thursday. Yahoo Inc shares fell almost 5 percent after the breach of data belonging to more than 1 billion users was disclosed, following another large hack reported in September. Verizon is seeking to persuade Yahoo to amend the terms of the acquisition agreement made in July to reflec
  
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• U.S. banks must pay up to $2 billion more per year to shield taxpayers: Fed

  15-12-2016 19:36 via news.yahoo.com
  
  The largest U.S. banks will have to pay as much as $2 billion more a year to insure against a future market collapse, the U.S. Federal Reserve said on Thursday, as it outlined a new rule designed to further protect the financial system. The rule demands Wall Street holds more debt that could be converted to shareholder equity if a bank is pushed to bankruptcy. Half of the eight largest U.S. banks would need to issue roughly $50 billion in fresh debt to satisfy the new standard, known as Total Lo
  
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• Wall Street hovers near record high after Fed rate hike

  15-12-2016 19:24 via news.yahoo.com
  
  Fed Chair Janet Yellen also cited an improving labor market and evidence of faster inflation for its 2017 rate outlook. The central bank's decision to raise rates comes as Trump, who will be sworn in next month, is expected to cut taxes and boost spending on infrastructure. "Investors are buying Yellen's story that the rate hike is a vote of confidence in the economy," said Dave Donabedian, chief investment officer of Atlantic Trust in Boston.
  
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• Rising rents lift U.S. inflation; labor market tightens

  15-12-2016 18:26 via news.yahoo.com
  
  Rising rents lifted underlying U.S. inflation in November, pointing to a steady build-up of price pressures in the economy that could support more interest rate increases from the Federal Reserve next year. The Fed raised interest rates on Wednesday for the second time since the 2007-2009 financial crisis and forecast three rate hikes in 2017. In addition to rising oil prices and a tight job market, inflation is likely to get a boost from U.S. President-elect Donald Trump's proposed expansionary
  
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• US average 30-year mortgage rate rises to 4.16 percent

  15-12-2016 18:08 via news.yahoo.com
  
  WASHINGTON (AP) — Long-term U.S. mortgage rates climbed for the seventh straight week following Donald Trump's election victory, again marking new highs for the year.
  
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• EU agrees to extend Russia sanctions until mid-2017: diplomats

  15-12-2016 18:04 via news.yahoo.com
  
  By Gabriela Baczynska BRUSSELS (Reuters) - European Union leaders agreed on Thursday to extend the bloc's main economic sanctions against Russia over the turmoil in Ukraine for six months until mid-2017, diplomats said. The decision was expected and the formal process to extend the sanctions on Russia's defense, energy and financial sectors will take place early next week, they said. The bloc slapped sanctions on Russia after it annexed Ukraine's Black Sea peninsula of Crimea from Ukraine in 201
  
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• Ecuador finance minister Herrera quitting for health reasons: Correa

  15-12-2016 17:45 via news.yahoo.com
  
  Ecuador's Finance Minister Fausto Herrera is stepping down for health reasons after three years in the cabinet, President Rafael Correa said on Thursday. "The economic team led by Fausto Herrera has done extraordinary work," Correa said during a meeting at the presidential palace in Quito. "He is leaving his post for health reasons, but the rest of the economic team is staying." The announcement came days after Herrera steered through a $750 million bond issue to finance the OPEC member's budget
  
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• U.S. banks must pay up to $2 billion more per year to shield Wall Street - Fed

  15-12-2016 17:43 via news.yahoo.com
  
  The largest U.S. banks will have to pay as much as $2 billion more a year to insure against a future market collapse, the U.S. Federal Reserve said on Thursday, as it outlined a new rule designed to further protect the financial system. The rule demands Wall Street holds more debt that could be converted to shareholder equity if a bank is pushed to bankruptcy. Half of the eight largest U.S. banks would need to issue roughly $50 billion in fresh debt to satisfy the new standard, known as Total Lo
  
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• Wall Street rises as banks jump on interest rate outlook

  15-12-2016 17:38 via news.yahoo.com
  
  Fed Chair Janet Yellen also cited an improving labor market and evidence of faster inflation for its 2017 rate outlook. The central bank's decision to raise rates comes as Trump, who will be sworn in next month, is expected to cut taxes and boost spending on infrastructure. "Investors are buying Yellen's story that the rate hike is a vote of confidence in the economy," said Dave Donabedian, chief investment officer of Atlantic Trust in Boston.
  
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• Bank of Canada sees higher household vulnerabilities

  15-12-2016 16:58 via news.yahoo.com
  
  By Andrea Hopkins and Leah Schnurr OTTAWA (Reuters) - The risk of a sharp correction in Canada's housing market and financial stress on households has increased modestly in the last six months because of the weaker economy but new mortgage rules will cool the market, the Bank of Canada said on Thursday. In its semi-annual Financial System Review, the central bank said that while the probability of a sharp price correction and nationwide financial stress on households is low, its impact would be
  
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• British commercial property values rise for second straight month since Brexit - MSCI

  15-12-2016 16:55 via news.yahoo.com
  
  British commercial property values rose in November for the second straight month since Britain voted in June to leave the European Union, having declined in the first three months after the vote, according to a survey published on Thursday. Fears for property prices in the immediate aftermath of the Brexit vote had some investors rushing to pull their cash out of commercial property funds, causing a temporary lock-up on around 18 billion pounds in assets. The British economy has shown unexpecte
  
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• Canadian manufacturing sales drop on widespread weakness

  15-12-2016 16:34 via news.yahoo.com
  
  By David Ljunggren OTTAWA (Reuters) - Canadian manufacturing sales unexpectedly fell by 0.8 percent in October from September on widespread weakness, indicating fourth-quarter growth could be sluggish, Statistics Canada data showed on Thursday. Canada's economy grew by 3.5 percent on an annualized basis in the third quarter after shrinking in the second quarter following a major wildfire in oil-producing Alberta. Economists expect fourth-quarter growth to be more modest.
  
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• Energy East pipeline woes cast pall over Canada's Atlantic coast

  15-12-2016 16:33 via news.yahoo.com
  
  By Mitch MacDonald CHARLOTTETOWN, Prince Edward Island (Reuters) - For years, heavy equipment operator Ashley Underhill has tried to defy the notion that one could only make a good living in Canada's poorer east coast by spending most of the time away from the family in the nation's western oil patch. One reason Underhill had battled on, working on small private contracts, including snow clearing and wood cutting, was Energy East, a planned 4,600-km (2860-mile) pipeline between Alberta's oil san
  
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• Wall Street slightly higher after Fed rate hike

  15-12-2016 16:14 via news.yahoo.com
  
  REUTERS - U.S. stocks opened slightly higher on Thursday, a day after the Federal Reserve increased interest rates for the first time this year and signaled a faster pace of hikes in 2017. The Dow Jones Industrial Average rose 22.86 points, or 0.12 percent, to 19,815.39. The S&P 500 gained 1.03 points, or 0.04 percent, to 2,254.31. The Nasdaq Composite added 2.85 points, or 0.05 percent, to 5,439.52. (Reporting by Tanya Agrawal in Bengaluru; Editing by Anil D'Silva)
  
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• Wall Street higher as banks rise on interest rate outlook

  15-12-2016 16:06 via news.yahoo.com
  
  Fed Chair Janet Yellen also cited an improving labor market and evidence of faster inflation for its 2017 rate outlook. The central bank's decision to raise rates comes as Trump, who will be sworn in next month, is expected to cut taxes and boost spending on infrastructure. "While there still remains a cloud of uncertainty over how economic policy may change under Trump's presidency, the same rising optimism towards Trump boosting U.S. growth through tax cuts and infrastructure spending may have
  
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• Governments pledge $75 billion to World Bank's poorest countries fund

  15-12-2016 16:03 via news.yahoo.com
  
  By David Lawder WASHINGTON (Reuters) - The World Bank said on Thursday that 48 governments have ratcheted up the fight against extreme poverty by committing $75 billion in new funds to the International Development Association, the bank's fund for the poorest countries. The replenishment will enable IDA to scale up development interventions to tackle conflict, fragility and violence, forced displacement, climate change and gender inequality, the World Bank said. It also will help promote better
  
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• Federal Reserve propels stocks, dollar higher

  15-12-2016 16:00 via news.yahoo.com
  
  Europe's stock markets advanced Thursday and the dollar soared after the US Federal Reserve hiked interest rates as expected -- and signalled three more rises next year.
  
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• Abe, Putin agree to revive Japan-Russia security talks, discuss Syria

  15-12-2016 14:29 via news.yahoo.com
  
  By Kiyoshi Takenaka and Katya Golubkova NAGATO, Japan (Reuters) - Japan and Russia agreed at a leaders' summit on Thursday to revive security talks and start discussing economic cooperation on disputed islands at the core of a row that has kept them from signing a peace treaty formally ending World War Two. Japanese Prime Minister Shinzo Abe and Russian President Vladimir Putin also talked about Syria, with Abe conveying to Putin his concern over the deteriorating humanitarian situation and Puti
  
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• Federal Reserve propels markets higher

  15-12-2016 14:17 via news.yahoo.com
  
  Hong Kong (AFP) - Europe's stock markets advanced Thursday and the dollar soared after the US Federal Reserve hiked interest rates as expected -- and signalled three more rises next year.
  
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• EU lawmakers back more ambition in carbon market reform

  15-12-2016 13:37 via news.yahoo.com
  
  By Alissa de Carbonnel BRUSSELS (Reuters) - EU lawmakers on Thursday endorsed draft reforms of the carbon market post-2020 that aim to balance greater cuts in greenhouse gases with protection for energy-intensive industries. The European Union's market for carbon credits, essentially tradeable permits allowing industry to pollute, has suffered from excess supply since the economic crisis, depressing prices and heightening the need for reform. "We have a strong endorsement for reform: We can begi
  
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• Futures flat after Fed sees faster pace of rate hikes

  15-12-2016 13:28 via news.yahoo.com
  
  * Fed Chair Janet Yellen also cited an improving labor market and evidence of faster inflation for its 2017 rate outlook. * The Fed's decision to raise rates comes as Trump, who will be sworn in next month, is expected to cut taxes and boost spending on infrastructure. * Since the Nov. 8 U.S. presidential election, stocks have rallied on bets that Trump's expected business friendly policies will stimulate the economy.
  
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• Eurozone economy appears robust as inflation pressures mount

  15-12-2016 13:26 via news.yahoo.com
  
  The eurozone economy is ending 2016 robustly and inflation pressures are growing, a key survey showed Thursday, in a combination that suggests the European Central Bank's stimulus efforts are working. ...
  
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• Mexican banks cut credit card exposure on Trump, rate risks

  15-12-2016 13:07 via news.yahoo.com
  
  Some Mexican banks are lowering credit card spending limits and raising consumer lending standards in the face of an economic slowdown, rising interest rates and the U.S. election victory of Donald Trump. After a period of robust overall credit growth, Mexican banks are cutting credit card exposure to counter a potential rise in consumer defaults and the risks of an economic shock should Trump restrict U.S. trade and business with Mexico. Lenders would see profits hit if Trump scraps the North A
  
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• What major companies are ripe for a takeover?

  15-12-2016 12:22 via news.yahoo.com
  
  Five years on from Rupert Murdoch's failed bid for the 61% of UK TV giant Sky that he does not own, he is back with a new takeover offer worth 11.2bn ($14bn) pounds. This move would consolidate Murdoch's control on UK TV as well as print media, in addition to his widespread US media interests (including 21st Century Fox, the Fox News TV channel and The Wall Street Journal). This is of course great news for Sky's top management, who stand to make almost £40m from lucrative share awards, acc
  
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• European stocks climb as Fed boosts bank sector

  15-12-2016 12:05 via news.yahoo.com
  
  Europe's stock markets mostly advanced Thursday with solid gains across the banking sector after the US Federal Reserve hiked interest rates as expected -- and signalled three more rises next year.
  
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• Exclusive: Cost of pump-at-will oil policy spurred Saudi OPEC U-turn

  15-12-2016 11:58 via news.yahoo.com
  
  DUBAI/LONDON (Reuters) - Saudi Arabia has long said it could produce as much as 12 million barrels per day (bpd) of oil if needed, but that pump-at-will claim - which would require huge capital spending to access spare capacity - has never been tested. Riyadh, the world's top oil exporter, felt the burn of cheap oil this year when crude was trading below $50 a barrel, as the reality of its costly war in Yemen and the task of shaking up its economy to create thousands of jobs began to sink in. Wi
  
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• Abe, Putin start hot spring summit, seeking progress on Japan-Russia islands row

  15-12-2016 11:34 via news.yahoo.com
  
  By Kiyoshi Takenaka and Katya Golubkova NAGATO, Japan (Reuters) - Japanese Prime Minister Japanese Prime Minister Shinzo Abe and Russian President Vladimir Putin met at a hot spring resort on Thursday in search of progress on a territorial row that has blocked a peace treaty formally ending World War Two. The two sides are likely to clinch agreements on economic cooperation in areas from medical technology to energy. Putin, who arrived nearly three hours late for the start of two days of summit
  
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• Centrica lifts earnings outlook as European power price swings boost trading

  15-12-2016 10:41 via news.yahoo.com
  
  LONDON, Dec (Shanghai: 600875.SS - news) 15 (Reuters) - Centrica (Frankfurt: A0DK6K - news) , Britain's largest energy supplier, lifted its annual profit forecast on Thursday after its trading division reaped the benefits of big price swings in the European power market and it managed to save more money than expected. The utility, which owns household energy supplier British Gas, raised its 2016 adjusted earnings per share expectations by 6.5 percent to 16.5 pence and said adjusted operating cas
  
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• Beijing issues red alert for severely high air pollution

  15-12-2016 10:31 via news.yahoo.com
  
  Beijing's city government has issued a red alert for severely high levels of air pollution in the Chinese capital, running for five days from Friday evening, the environmental protection bureau said on its official Twitter-like Weibo account. The city issued its first ever red alert on smog in December last year, after adopting a color-graded warning system in a crackdown on environmental degradation left by decades of breakneck economic growth. Smog expected this week will stem from air polluti
  
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• Hong Kong stocks plunge on Fed rate hike woe

  15-12-2016 10:02 via news.yahoo.com
  
  Shares tumbled in Hong Kong Thursday, led by property firms, after the Federal Reserve lifted interest rates and indicated a further three hikes are likely next year. The Hang Seng Index dived 1.77 percent, or 397.22 points, to 22,059.40 at the close. The Hong Kong Monetary Authority followed the Fed and hiked interest rates in the city, putting an extra strain on the city's already troubled economy and almost certainly ramping up repayments for homeowners.
  
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• South Korea raises bird flu alert to highest level for first time

  15-12-2016 09:45 via news.yahoo.com
  
  SEOUL (Reuters) - South Korea's agriculture ministry raised the country's bird flu alert status to the highest level for the first time on Thursday as the disease has spread quickly nationwide. The Ministry of Agriculture, Food and Rural Affairs said in a statement that it will come up with detailed measures after consulting with related ministries. Since the first bird flu case was reported about a month ago, the country, Asia's fourth-largest economy, has culled over 12 percent of its total po
  
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• EDF shares slump after warning of lower earnings in 2017

  15-12-2016 09:25 via news.yahoo.com
  
  PARIS (Reuters) - Shares in French utility EDF fell more than 11 percent on Thursday after the company warned of lower earnings in 2017. EDF shares were down 11.3 percent at 0813 GMT, the biggest loser on the STOXX Europe 600 index and on France's CAC-40 index . EDF underperformed a 0.6 percent rise on France's CAC. Its shares are down by nearly 30 percent so far in 2016. Late on Wednesday, EDF set a 2017 EBITDA (earnings before interest, tax, depreciation and amortisation) target of 13.7 billio
  
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• Namibia's economy contracts 1 percent in Q3 qtr/qtr

  15-12-2016 09:17 via news.yahoo.com
  
  Namibia's economy shrunk by 1.0 percent in the third quarter of 2016 compared with a contraction of 1.2 in the second quarter, data on the statistics agency's website showed on Thursday. Mining, construction, public administration and defence sectors were the largest contributors to the decline in the quarter, the agency said.
  
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• Yellen signals caution about Trump's economic stimulus plan

  15-12-2016 09:07 via news.yahoo.com
  
  WASHINGTON (AP) — President-elect Donald Trump has pledged deep tax cuts and increased infrastructure spending to restore lost jobs, accelerate the economy and bring prosperity to more Americans.
  
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• Centrica lifts earnings outlook on cost cuts, strong energy trading

  15-12-2016 08:33 via news.yahoo.com
  
  LONDON (Reuters) - Britain's largest energy supplier Centrica lifted its full-year earnings expectations on Thursday due to better than expected cost savings and a strong trading performance amid volatile energy markets. The utility, which owns household energy supplier British Gas, said it now expected 2016 adjusted earnings per share of around 16.5 pence and adjusted operating cashflow of 2.4-2.6 billion pounds ($6.3 billion), compared with more than 2 billion pounds it previously expected. ..
  
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• Asian markets slide as Fed raises its benchmark interest rate

  15-12-2016 07:29 via news.yahoo.com
  
  Asian stock market indices were trading lower on Thursday (15 December), with the Shanghai Composite down 0.29% at 3,131.31 as of 3:38 am GMT following the US Federal Reserve announcing its first interest rate increase this year.
  
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• Hong Kong hikes borrowing costs after Fed move

  15-12-2016 07:04 via news.yahoo.com
  
  Hong Kong followed the Federal Reserve and hiked interest rates on Thursday, putting an extra strain on the city's already troubled economy and almost certainly ramping up repayments for millions of homeowners. In a widely expected move the Fed on Wednesday increased borrowing costs by 25 basis points -- only its second such move in a decade -- as the US economy increasingly shows improvement. It also said it envisioned another three rises next year, up from previous assumptions for two, as it p
  
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• Fed's forecast after raising key rate: 3 more hikes in 2017

  15-12-2016 06:12 via news.yahoo.com
  
  After raising its benchmark interest rate in response to a strengthening U.S. economy, the Federal Reserve foresees three more hikes in 2017. The Fed's move to raise its key rate will mean modestly higher ...
  
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• Targeting U.S. automaker signals possible China retaliation over Trump talk

  15-12-2016 05:05 via news.yahoo.com
  
  By Arshad Mohammed, Matt Spetalnick and Benjamin Kang Lim WASHINGTON/BEIJING (Reuters) - China's plan to punish a U.S. automaker accused of price-fixing is a sign of how Beijing could retaliate if President-elect Donald Trump upends decades of relations between the two nations. Trump's assertion that the United States need not be bound by the policy that Taiwan is part of "one China" would erode a bedrock of U.S.-China ties that has underpinned the vast increase in trade and cooperation between
  
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