The slump in U.S. housing stocks to new four-year lows is hurting some well-known investors who recently added home builders and housing-related stocks such as KB Home and Pulte Homes Inc to their positions.
The chief of Advanced Micro Devices Inc said on Monday a new chip with four processing brains would help the underdog company win back market share from rival Intel Corp and does not see any sign consumers are holding back on new computers -- yet.
Chinese machinery maker Sany Heavy Industry Co will sign a memorandum of understanding with the U.S. state of Georgia on Wednesday to build a $60 million plant, a source familiar with the situation said on Tuesday.
H&R Block Inc, the largest U.S. tax preparer, said on Tuesday it will fire 575 workers at its Option One Mortgage Corp subprime lending unit, on top of 615 job losses announced on May 15.
Stocks rallied on Tuesday, bolstered by confidence the Federal Reserve will cut interest rates next week, another round of upbeat outlooks from technology companies, and solid sales from McDonald's Corp.
ImClone Systems inc. announced Tuesday that the cancer drug Erbitux showed positive results, meeting its goal of increased survival rates of patients with advanced lung cancer.
Consumers are carrying a record $907 billion in credit card debt, and that looks likely to jump now that the housing slump has blunted another popular financing tool -- home equity loans. Americans cashed out hundreds of billions of dollars in home equity as credit came cheap in a five-year housing boom that ended about 18 months ago.
McDonald's Corp. on Tuesday reported an 8.1 percent rise in August same-store sales, easily beating analysts' expectations on strong breakfast and beverage sales in the United States and extended store hours in China and Australia.
Federal Reserve Chairman Ben Bernanke on Tuesday told a European audience that huge external debts were not unduly burdening the U.S. economy now, but that over time the U.S. current account gap is unsustainable.
Carmakers wasted no time trying to show off their new-found green credentials -- as well as their glittering profits -- at the start of the Frankfurt International Motor Show (IAA) on Tuesday.
Canada's trade surplus shrank more than expected in July as imports rose because of the stronger Canadian dollar, while the housing sector proved surprisingly resilient this summer, figures released on Tuesday showed.
Americans will commemorate the sixth anniversary of the September 11, 2001 attacks that killed about 3000 people and gripped the nation's psyche, by organizing silent processions and lighting candles in memory of the victims, even as reports poured in that Al-Qaeda leader Osama Bin Laden is seen mocking the U.S. in a new video release.
The top executive at General Motors Corp said on Tuesday that the automaker was watching the downturn in the U.S. housing market closely and blamed the softness there for weakness in vehicle sales.
New Yorkers are doing all they can to preserve the way September 11 is commemorated, and with it falling on a Tuesday for the first time since 2001, the day is another trigger of tragic memories. And across the United States, September 11 will have much of the same emotional impact that has gripped the American psyche and dominated U.S. political discourse for six years, an impact that will not soon ease, analysts say.
The top U.S. general in Iraq on Monday recommended cutting American troops by about 30,000 by next summer, ending the so-called surge of forces but not fundamentally changing strategy in the unpopular war.
Federal Reserve officials said on Monday that while there were risks related to ongoing housing and financial markets turmoil, it was not completely clear if such uncertainty could spread to the wider economy.
Stocks closed little changed on Monday as strength in semiconductor stocks tied to Intel Corp.'s higher sales outlook offset lingering concerns about the mortgage market. An afternoon rally fizzled when oil shot to within a whisker of a record, sparking fresh worries that high gasoline costs will squeeze consumer spending.
Concessions made to banks financing the $26 billion leveraged buyout of First Data Corp (FDC.N: Quote, Profile, Research) by private equity group Kohlberg Kravis Roberts & Co. may signal the death of its planned junk bond sale.KKR's surrender on the $16 billion loan portion of the financing is emboldening bondholders to demand higher yields and other protections for planned high-yield bonds after the current global credit squeeze sapped investor appetite for junk bonds.KKR, the leveraged buyout firm known for refusing to budge on lending terms, may not be willing to bend further, putting the junk bond sale at risk, investors say.Bond investors considering buying the high-yield corporate bonds say the size may be scaled back to $6 billion or canceled altogether in favor of bank debt, and a decision is expected as soon as this week. A May filing by First Data said financing for the deal may involve up to $8 billion in junk bonds.If KKR is going to be inflexible, it's never going to come to high yield, said Eric Misenheimer, who manages $500 million worth of high-yield debt at J&W Seligman in New York. There's a high probability they will scrap the bond sale entirely.The junk bond market has been frozen for about two months without a sale, the longest stretch Misenheimer can recall in his 18-year career, he said.The sale also may be delayed until the market knows what the Federal Reserve intends to do to alleviate the credit squeeze that has gripped world capital markets in recent weeks after losses suffered by banks and hedge funds on U.S. mortgage-related securities.The Fed next meets on September 18, when the central bank is widely expected to cut it federal funds rate target, its main monetary policy lever, to protect the economy from a sharp housing market downturn.Interest rate futures show investors are betting on a quarter-percentage cut from the current federal funds target rate of 5.25 percent. Some economists predict as much as a half-percentage point cut.If they do try to do it, they might try the bonds on a wing and a prayer after the Fed meeting, said Misenheimer, who believes the junk bonds must offer yields of 10 percent or more to entice buyers.KKR in a rare move has agreed to a covenant that places performance criteria on First Data's debt, according to a source familiar with the deal. Adding a covenant makes it easier for the investment banks to sell the debt to investors worried about risks tied to the deal.KKR declined to comment on details of the financing.The market's really changed in the last several months and this will pressure the rates, said Ken Karwowski, a high yield portfolio manager at Allegiant Asset Management in Chicago. They'll likely pay a higher rate and have more stringent covenants to offer better protection for debt investors.Given the way conditions have changed, it's going to take a little more time to put together, Karwowski said on Monday.The debt burden KKR is taking on to complete the buyout has affected demand, according to James Cusser, a portfolio manager at Waddell & Reed Investment Management in Overland Park, Kansas. That has begun to result in a growing pipeline of bond sales that are waiting to see how the First Data sale performs before coming to market, he said.The banks are on the hook and they're trying to get the deal done, Cusser said. It's leveraged to the gills and they seemingly can't find a clearing price. Until this gets done, a lot of deals are backing up.
Oil surged to near an all-time record over $78 a barrel on Monday as OPEC prepared to meet on output policy and after attacks on crude and natural gas pipelines in U.S. supplier Mexico.
Toyota Motor Corp. should hit its target of 5-percent U.S. sales growth this year despite a recent slowdown and building concerns about the knock-on effect of the subprime mortgage crisis, the automaker's chief financial officer said on Monday.
Stocks fell on Monday as bank shares declined on fears of bigger-than-expected loan losses related to housing, while a drop in crude oil prices hurt energy shares.
A European Union court will decide next Monday on Microsoft's challenge to a 2004 landmark European Commission decision imposing fines and sanctions on the software giant over antitrust violations.
L'Oreal, the world's largest cosmetics group, has launched legal action against eBay, alleging the online auctioneer does not do enough to combat the sale of counterfeits, the company said on Monday.
