Mitsubishi Seeks CA Bank; Bargain Hunters Boost TJX; BP Takes Precautions in Georgia; LDK Shines in Second Quarter; Trade Deficit Shrinks on Record Exports; Budget Deficit Triples its Record; Freddie and Fannie Lobby Uncle Sam; Things Get Worse for Wachovia
- Mitsubishi UFJ Financial Group Inc. (ADR: MTU) offered UnionBanCal Corp. (UB) $63 per share for the remaining 35% stake that Mitsubishi does not already own. San Francisco-based UnionBanCal, which earlier rejected a $58-per-share offer from Tokyo-based Mitsubishi, have yet to respond to the sweetened bid, The Los Angeles Times reported.
- The TJX Cos. Inc. (TJX), the owner of discount-clothing retailers T.J. Maxx and Marshalls, reported second-quarter net income more than tripled to $200.2 million, or 45 cents per share, from $59 million, or 13 cents per share for the same period the year prior. Off-price retailers such as TJX have done well despite a consumer slowdown as shoppers seek out bargains, Bloomberg News reported.
- BP PLC (ADR: BP) announced yesterday (Tuesday) that it had closed down a pipeline in the Georgia-region due to escalating tensions with Russia. London-based BP plans to keep the 90,000-barrel-a-day pipeline to Supsa on Georgia's Black Sea coast, which runs from Baku, Azerbaijan closed indefinitely, as it is near the center of Georgia and more prone to conflict, The Associated Press reported.
- LDK Solar Co. Ltd. (LDK) shares soared yesterday (Tuesday) after the solar-wafer manufacturer announced second-quarter net income increased to $149.5 million, or $1.29 per share, up from $28.7 million, or 29 cents per share, in the same period the year prior. LDK shares jumped over 20% on the results, which soundly beat analyst expectations of 42 cents per share, Green Tech Media reported.
- The U.S. trade deficit fell in June as exports advanced to an all-time high. The Commerce Department reported yesterday (Tuesday) that the trade imbalance dropped to $56.8 billion in June, down by 4.1% from a revised May deficit of $59.2 billion. Exports of goods and services rose to a record of $164.4 billion.
- The federal budget deficit soared $102.8 billion in July, close to triple the $36.4 billion deficit recorded in July 2007. The deficit was pushed higher by the $168 billion economic stimulus package and $15 billion in outlays to protect depositors at failed banks. Through July, government revenues totaled $2.094 trillion, down 1% from the same period a year ago.
- Mortgage finance company Freddie Mac (FRE) spent nearly $2.3 million in the second quarter to lobby on legislation that tightens regulations over the government-sponsored company, The Associated Press reported. As part of the recent housing bill, the Treasury Department gained unlimited power through 2009 to lend money to Freddie and its sister company Fannie Mae (FNM), which spent more than $1.5 million to lobby the federal government.
- Wachovia Corp. (WB) yesterday (Tuesday) increased its previously reported second-quarter loss to $9.11 billion and said it will cut more jobs as the housing market deteriorates. The bank is now reporting a loss of $4.31 per share, up from the $8.86 billion, or $4.20 a share, it reported on July 22. Wachovia also plans to cut 6,950 jobs, 600 more than previously disclosed, Reuters reported.