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Canada Lowers Key Rate 50 Points; Source: News Corp. Swipes Newsday from Tribune; AT&T Dials Up Fourth Quarter Profit; Oil Gushes to Another High; Home Sales Kept Falling in March; Merrill Raises Cash; Yahoo Flat Without Alibaba; Yum's Strong China Sales
- Seeking to revive its slowing economy, the Bank of Canada lowered its benchmark rate by a half point to 3%. The new rate is the lowest since December 2005. About three-fourth of Canada's exports come to United States, Bloomberg reported. The Bank signaled that more rate cuts might be needed.
- NWS) for about $580 million, Reuters reported, citing a source familiar with the matter. The source said it deal is would likely be a joint venture between Newsday and Murdoch's New York Post, with the publications to combine back office operations. However, News Corp. would own most of the company, Tribune keeping a very small stake. has reached a deal to sell its Long Island daily paper Newsday to Rupert Murdoch's media empire News Corp. (
- AT&T Inc. (ATT) reported yesterday (Tuesday) that first-quarter earnings rose 22% as its wireless division experienced strong growth and the enterprise services division reversed a slide, the . The country's largest telecommunications company earned $3.46 billion (57 cents per share) in the three months ended March 31, compared with $2.85 billion (45 cents per share) a year ago.
- Crude oil rose to a record $119.90 a barrel in New York yesterday (Tuesday) as the dollar dropped to an all-time low against the euro, and investors purchased commodities as an inflation hedge. The dollar touched $1.60 per euro for the first time after European Central Bank policy makers signaled they may raise interest rates because of inflation.
- Sales of existing homes fell in March, as did the median price of a home, the National Association of Realtors said yesterday (Tuesday). Sales of existing single-family homes and condominiums dropped by 2% in March to a seasonally adjusted annual rate of 4.93 million units the group said. The median price of a home sold last month was $200,700, a 7.7% decline from the median price a year ago.
- Merrill Lynch & Co. Inc. (MER) announced it would raise $7.3 billion in capital through the sale of bonds and preferred shares. The third-largest U.S. securities firm requires the capital after a $6.5 billion writedown in assets, Bloomberg News reported.
- Yahoo Inc. (YHOO) announced yesterday (Tuesday) that net income for the first quarter increased to $542 million (37 cents per share) from $142 million (10 cents per share) for the same period in the prior year. The recent period's earnings include a gain of $401 million related to the IPO of Alibaba.com Ltd., in which Yahoo has an ownership stake, MarketWatch reported.
- Yesterday, (Tuesday) Yum! Brands Inc. (YUM) announced quarterly earnings after the close of trading. The fast-food giant earned $254 million, or 50 cents a share, up from $194 million, or 35 cents, for the same period the year prior. U.S. same-store sales increased 3% in the quarter, while same-store sales in China climbed 12%, aiding the 5% increase in overall international same-store sales, MarketWatch reported.