Congress Considers Steel Pennies and Nickels; Slovakia to Adopt the Euro; U.S. Home Sales Hit New Low in March; "Grand Theft Auto" Nets $500 million in One Week; Vallejo, Calif. Officials Vote for Bankruptcy; Disney Shares Gain on Happy Earnings; Cisco Stock Slumps; SEC Wants to Avoid Another BSC
The U.S. Congress is considering a return to steel pennies and nickels that hasn't been seen since World War II, according to the Associated Press. The cost of making a penny has risen to 1.26 cents and the cost of making a nickel has risen 7.7 cents, as soaring costs for copper, zinc, and nickel have soared in the past year.
The European Union said yesterday (Wednesday) that Slovakia has met its criteria for adopting the euro. It will be the sixteenth country to join the group, effective January. "However, to ensure that the adoption of the euro is a success, Slovakia must pursue its efforts to maintain a low-inflation environment, be more ambitious with regard to budgetary consolidation and strengthen its competitiveness position," Joaquín Almunia, EU commissioner for economic and monetary affairs, said in a statement.
U.S. home sales dropped to a new low in March, signaling the housing slump has yet to bottom, the National Association of Realtors reported. The group's seasonally adjusted index of pending sales for existing homes fell to 83.0 from a reading of 83.8 in February. The index stood at 103.9 in March 2007.
"Grand Theft Auto 4," Take-Two Interactive Software Inc.'s marquee video game, reeled in more than $500 million in global sales (or about 6 million units) in its first week on the shelves, Reuters reported. Take-Two was hoping strong GTA sales would bolster its position in talks with Electronic Arts Inc. (ERTS), which is offering a $2 billion, or $25.74 share, buyout.
City officials of Vallejo, Calif. voted to file for bankruptcy, as declining housing-related tax revenue has left the San Francisco suburb unable to pay for basic services. Starting July 1, the city will have a $16 million deficit forecast for the year. "Nobody wants bankruptcy, but there doesn't appear to be a whole lot of options left," City Councilwoman Joanne Schivley told Bloomberg. "We are going to be out of money by June 30. It's all a numbers game now."
The U.S. Securities and Exchange Commission will require greater disclosure from investment banks following the liquidity run on The Bear Stearns Cos. Inc. (BSC). "One of the lessons learned from the Bear Stearns experience is that in a crisis of confidence, there is great need for reliable, current information about capital and liquidity," SEC Chairman Christopher Cox told reporters in Washington yesterday (Wednesday), Bloomberg News reported.