Global financial news, market analysis, economics and forex news

Obama Administration Releases Corporate Tax Reform Plan

Wed, 22 Feb 2012 18:45:15 GMT - Treasury Secretary Timothy Geithner Wednesday unveiled the Obama Administration's plan to reform the corporate tax code to promote economic growth in the United States. Geithner, speaking to reporters at the Treasury Department, said that the present tax code was written for a different economic era and needs to be modernized.

Regulators Probe Fake Avastin, Other Drugs In The U.S.

Wed, 22 Feb 2012 18:04:28 GMT - Even as health regulators try to track the source of fake vials of Genentech's Avastin being distributed in the U.S., reports have emerged of other dubious drugs having found its way into the supply chain as fraudulent firms seek to profit from unauthorized versions of such costly medicines. About a week ago, Genentech, a part of Swiss drug maker Roche Holding AG, had warned healthcare providers and patients in the U.S. of fake vials of blockbuster cancer therapy Avastin.

TJX Companies Q4 Profit Rises, To Buyback Shares; Boosts Dividend

Wed, 22 Feb 2012 15:50:54 GMT - TJX Companies, Inc. on Wednesday reported a 42 percent increase in profit for the fourth quarter from last year. The results reflect higher revenues, an increase in comparable store sales and improved margins. The company's consolidated comparable store sales for the quarter increased 7 percent, amid strong holiday sales. The off-price apparel and home fashions retailer also said it plans to repurchase up to $1.3 billion of its stock and raise the quarterly dividend by 21 percent.

GM In Tie-up Talks With Peugeot Citroen: Reports

Wed, 22 Feb 2012 15:41:02 GMT - U.S. automaker General Motors Co. is reportedly in talks to forge a broad alliance with Europe's second largest car maker PSA Peugeot Citro‰n in its bid to strengthen its European operations. Rather than a takeover, the companies are looking for a collaboration on technological perspective to ensure synergies in vehicle architecture, transmissions and engines. Peugeot shares surged 13.72 percent, subsequent to the disclosure of French Labor Minister Xavier Bertrand about the ongoing talks.

U.S. Existing Home Sales Jump To Twenty-Month High In January

Wed, 22 Feb 2012 15:36:36 GMT - Existing home sales in the U.S. showed a notable increase in the month of January, according to a report released by the National Association of Realtors on Wednesday, although the report also showed a significant downward revision to the data for December. The report showed that existing home sales rose 4.3 percent to an annual rate of 4.57 million in January from a downwardly revised 4.38 million unit rate in December.

U.S. Credit Card Delinquencies May Be On The Rise

Wed, 22 Feb 2012 14:23:09 GMT - U.S. consumers may be getting back to their pre-recession habit of spending more than they can afford, according to the latest figures from credit trend data provider TransUnion LLC. The Chicago, Illinois-based company noted that national credit card delinquencies for the fourth quarter declined 5 percent from last year in the U.S., but grew 10 percent sequentially from the third quarter.

MGM Resorts Q4 Loss Narrows On Higher Revenues, Tax Benefit

Wed, 22 Feb 2012 14:04:05 GMT - MGM Resorts International on Wednesday reported a loss for the fourth quarter that narrowed from last year. The results reflect strong revenue growth in addition to an income tax benefit. MGM Resorts has been reporting improved results in recent quarters as more tourists flock to the company's Las Vegas casino resorts and in Macau, amid an improvement in the economy. The company witnessed an increase in visitor volume as well as room rates at the Las Vegas strip in the latest quarter.

Dollar Tree Q4 Profit Beats View, Sees Sequential Fall In Q1 EPS - Update

Wed, 22 Feb 2012 13:51:24 GMT - Discount stores operator Dollar Tree, Inc., a Fortune 500 company, on Wednesday said it expects a sequential decline in first-quarter earnings. The company reported higher profit for the fourth quarter, helped by a 13 percent growth in revenues. Both earnings and revenues exceeded analysts' expectations. The company, which sells everything for $1 or less, said sales at stores open for at least 12 months in the quarter increased 7.3 percent.

Toll Brothers Slips To Red As Deliveries Decline

Wed, 22 Feb 2012 12:18:56 GMT - Luxury homebuilder Toll Brothers, Inc. reported Wednesday a loss for the first quarter as it delivered lesser units than it did last year. However, the company's Executive Chairman Robert Toll said housing starts are improving, almost echoing the views of David Crowe, chief economist of the National Association of Home Builders, who told RTTNews last week that green shoots are finally emerging out of the housing sector.

Wall Street Poised For Edgy Run

Wed, 22 Feb 2012 11:38:13 GMT - Wall Street's perch at elevated levels seems to be posing a downside threat, as indicated by the index futures, which point to a lower open on Wednesday. With concerns about Greece being successful in returning back to fiscal strength lingering, traders may be reluctant to take up fresh positions in overbought stocks. The trading direction of the session may largely hinge on some key earnings reports and a domestic housing data due for release shortly after the markets open.

Raw Facts About Raw Dairy Products

Wed, 22 Feb 2012 10:47:40 GMT - Consumption of non-pasteurized dairy products cannot be considered safe under any circumstances, warns a report released Tuesday by the Centers for Disease Control and Prevention. However, proponents of raw milk think otherwise as they perceive it to be more nutritious - with higher levels of nutrients and other health benefits, compared to pasteurized milk.

Eurozone Private Sector Contracts Unexpectedly In February

Wed, 22 Feb 2012 10:19:29 GMT - Eurozone private sector business activity unexpectedly slipped back to contraction in February, fueling concerns that the economy may be sliding into a recession amid the region's prolonged debt crisis. The composite output index fell to 49.7 in February from 50.4 in January. Economists expected the index to remain almost steady at 50.5. An index reading below 50 indicates contraction in activity. Nonetheless, the composite index was the second-highest in six months.

France Telecom Intends To Tweak Dividend Policy After Weak Results

Wed, 22 Feb 2012 09:32:41 GMT - France Telecom SA said Wednesday it intends to adjust its shareholder remuneration policy, after reporting lower earnings and revenues for both the fourth quarter and full-year 2011. The Paris-based owner of the Orange brand mobile phones said such a move was warranted given the uncertain macro-economic and competitive environment. The Group has decided to adapt its dividend policy by aligning it with operating cash flow generation.

Schneider Electric Profit Rises; Sees Flat Results In 2012

Wed, 22 Feb 2012 08:35:34 GMT - Schneider Electric S.A. reported Wednesday a 6 percent increase in 2011 profit despite margin erosion. The results reflected higher sales in all businesses and geographical segments as well as the acquisition of Areva Distribution. The French energy management company noted that price increases offset more than half of raw material inflation. Looking ahead, the company expects flat to slightly positive organic growth for sales and an adjusted EBITA margin between 14 and 15 percent for 2012.

IAEA: Iran Nuclear Talks End Without Progress

Wed, 22 Feb 2012 06:43:37 GMT - The International Atomic Energy Agency (IAEA) said early on Wednesday that talks held between its inspectors and Iranian authorities in Tehran on the Islamic Republic's controversial nuclear program ended without progress. "Intensive efforts were made to reach agreement on a document facilitating the clarification of unresolved issues in connection with Iran's nuclear program. Unfortunately, agreement was not reached on this document," the IAEA said in a statement.

Threshold Pharma - Pushing Beyond Boundaries

Wed, 22 Feb 2012 06:25:34 GMT - Shares of Threshold Pharmaceuticals Inc. (THLD) touched a new 4-year high of $6.65 on Tuesday, following positive mid-stage results of lead drug candidate TH-302 in a pancreatic cancer study. Just four months ago, on October 19, 2011, when we alerted readers to this stock, it was trading at $1.66 a share. The stock closed yesterday's trading at $5.01, and that's a 202% gain in just four months for anyone who bought the stock last October.

RIL, Sibur Form JV To Produce Butyl Rubber

Wed, 22 Feb 2012 05:25:38 GMT - Reliance Industries Ltd., or RIL, on Tuesday announced a $450- million joint venture with Russian petrochemical company 'Sibur' to set up a 100,000-ton butyl rubber plant at RIL's Jamnagar refinery in India. The JV has been christened 'Reliance Sibur Elastomers Pvt Ltd.'

China Manufacturing Sector Contracts For Fourth Month

Wed, 22 Feb 2012 04:44:05 GMT - China's factory activity shrank for a fourth consecutive month in February, as weak domestic demand as well as external weakness added downside risks to growth, a survey by Markit Economics revealed Wednesday.

Australia Westpac Leading Index Signals Sub-Par Growth

Wed, 22 Feb 2012 04:35:55 GMT - An indicator of Australian economic activity pointed to sub-par growth for the economy for the three to nine months into the future, while at the same time brushing aside concerns about a sharp slowdown.

J&J CEO Weldon To Step Down In April, Alex Gorsky Named Successor

Wed, 22 Feb 2012 04:28:33 GMT - Johnson & Johnson, which is striving to shake off its recent travails related to a series of product recalls, announced a top executive change late Tuesday. The healthcare giant said its decade-old Chief Executive Officer William Weldon will step down from his post in April. He will be succeeded by vice chairman Alex Gorsky as the ninth chief executive officer of the 126 year-old company, while Weldon, aged 63, remains the chairman of the board.

Intuit Q2 Profit Rises, Top Estimates

Tue, 21 Feb 2012 23:39:17 GMT - Financial management solutions provider Intuit Inc. (INTU), Tuesday said its profit for the second quarter surged from a year ago, due mainly on a 16 percent revenue growth. For the first time in the company's history, second-quarter revenues crossed the $1 billion mark. Intuit said the double digit revenue growth was driven by its core businesses with Small Business Group revenue improving 9 percent.

Dell Profit Falls 18% On Higher Expenses

Tue, 21 Feb 2012 22:32:43 GMT - PC maker Dell Inc. said Tuesday after the markets closed that its fourth quarter profit fell 18% from last year, as higher expenses more than offset a modest 2% increase in revenue. The company's quarterly earnings per share, excluding items, also came in below analysts' expectations. At the same time, the Round Rock, Texas-based company gave a downbeat revenue forecast for the first quarter.

Obama Bypasses Congress In Move To Bolster Rural Economies

Tue, 21 Feb 2012 18:37:45 GMT - The Obama Administration on Tuesday rolled out a three-part plan to spur rural economies, using methods meant to bypass legislative action - part of an effort to push economic stimulus without sparking another face-off with Congress. Under the initiative, the government would prioritize the purchase of bio-based products, promote rural job growth and develop a rural health care workforce - all through executive orders which do not require congressional approval.

Barnes & Noble Q3 Profit Declines On Expenses, Launches 8GB Nook Tablet

Tue, 21 Feb 2012 15:54:21 GMT - Bookstore chain Barnes & Noble, Inc. reported Tuesday a decline in profit for the third quarter, hurt by higher expenses. Both earnings per share and quarterly revenues missed analysts' expectations. The company also maintained its guidance for the full-year 2012. Separately, the company said it has expanded its portfolio of bestselling Nook devices by launching 8GB Nook Tablet.

Macy's, Saks Post Higher Q4 Profits; See Growth In 2012

Tue, 21 Feb 2012 15:27:09 GMT - Department store chain Macy's Inc. and luxury retail chain Saks Inc. on Tuesday reported higher profits for the fourth quarter. The results of both the companies benefited from higher comparable store sales, a surge in online sales, and one-time gains. Amid improved consumer sentiment, Macy's results benefited from strong holiday spending, while Saks benefited from a rebound in demand for luxury items. Both the companies project higher same-store sales for fiscal year 2012.

Walmart Q4 Results Miss View Despite Overseas Sales Growth

Tue, 21 Feb 2012 14:05:54 GMT - The world's largest retailer, Wal-Mart Stores, Inc. (WMT) reported Tuesday a 15 percent drop in fourth-quarter profit hurt by higher costs. This was despite a turnaround in U.S. sales and continued strong performance at overseas stores. Excluding a tax benefit, earnings per share from continuing operations missed analysts' expectations by two cents and quarterly revenues also missed estimates. The company provided earnings guidance for the first quarter and its fiscal-year 2013.

RadioShack Q4 Profit Down 79% - Update

Tue, 21 Feb 2012 13:45:44 GMT - Consumer electronics retailer RadioShack Corp. on Tuesday reported a plunge in profit for the fourth quarter, primarily reflecting the under-performance of the company's Sprint postpaid wireless business that offset an increase in sales. A highly promotional holiday season and tight consumer spending also impacted the quarter's results. However, the results were in line with the company's forecast announced in January.

Dell To Report Q4 Results

Tue, 21 Feb 2012 13:41:31 GMT - Dell Inc. (DELL) is slated to report fourth-quarter results on Tuesday. Wall Street analysts expect the computer maker to have earned less than what it earned last year and in the previous quarter, sans one-time items.

Kraft Foods Profit Meets Estimates, But Sales Miss

Tue, 21 Feb 2012 13:15:14 GMT - Kraft Foods Inc. reported Tuesday a 54 percent rise in fourth-quarter profit, driven by revenue growth, cost management and focused investments in major brands. Underlying earnings met the Street estimates, while top line missed. The food giant, which is readying to split itself into two public entities, projects earnings and revenues growth in 2012. CEO Irene Rosenfeld said, "We expect to deliver top-tier growth in 2012, in line with our long-term targets."

Home Depot Beats Estimates On Favorable Weather - Update

Tue, 21 Feb 2012 13:09:55 GMT - Home improvement retailer Home Depot, Inc. reported Tuesday about 32 percent rise in fourth-quarter profit as warm weather created home improvement demands that reflected in 6 percent growth in sales. Both earnings per share and revenues surpassed analysts' expectations. For the fiscal ending January 2013, the company targets operating margin expansion of about 50 basis points.