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.
Tribune Co.has reached a deal to sell its Long Island daily paper Newsday to Rupert Murdoch's media empire News Corp. (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.
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 Associated Press reported. 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.