UBS Posts $1.7 Billion Loss; Infosys Forecast First Sales Drop; FDI in China Slips Again; Annual CPI Falls For First Time Since 1955; Homebuilder Sentiment Rises; BofA Raises Credit Card Transfer Fees to 4%; Cisco Deal Clears FTC; Brazil's Bonds Rise On Interest Rate Cuts
UBS AG (UBS) said it will cut 11% of its staff and warned that the bank faces an uncertain future. In its first quarter earnings report, Switzerland's largest bank posted a $1.7 billion loss. At its annual shareholder meeting, Chief Executive Oswald Gruebel told investors: "Unfortunately I am not able - as yet - to offer you any good news. Instead I am forced to present you with another round of unsatisfactory performance figures and to announce further drastic measures," Reuters reported.
India's second-largest computer services provider, Infosys Technologies Ltd. (ADR: INFY), forecast its first annual drop in dollar sales, Bloomberg reported. For the fiscal year ended March 31, revenue will fall 3.1% to 6.7% to range between $4.35 billion and $4.52 billion.
Foreign direct investment in China fell for the sixth consecutive month in March, as overseas companies and governments continued to curtail spending in the global financial crisis. Investment fell 9.5% to $8.4 billion compared to a year ago. Foreign investment declined 15.8% in February, Bloomberg reported.
The consumer price index posted its first annual decline since 1955in March, and idle American manufacturing capacity reached a record, alleviating concern that U.S. Federal Reserve actions would cause inflation to soar. Consumer prices fell 0.4% in March from 2008, the Labor Department said in Washington. Output at factories, mines and utilities in use slid to 69.3%. The figures signal deflation remains the bigger danger, and underscores Federal Reserve Chairman Ben S. Bernanke's call for inflation to remain "quite low for some time."
Sentiment among U.S. homebuilders rose in April to its highest level since last October, the National Association of Home Builders said yesterday (Wednesday). The NAHB/Wells Fargo Housing Market index rose to 14 from 9 in March, emerging from single-digit territory for the first time in six months. April's increase was the largest one-month gain since May 2003, Reutersreported.
Bank of America Corp. (BAC), is boosting fees on transfers of card balances amid growing criticism of banking practices. The fees on sums transferred will rise to 4% from 3% on June 1, according to a notice mailed to customers. The change reflects increasing costs for the third-biggest U.S. credit-card lender bank, spokeswoman Betty Reiss said in an interview, with Bloomberg.
Cisco SystemsInc. (CSCO) won U.S. antitrust approval for its purchase of FlipVideo digital camcorder maker Pure Digital Technologies, the Federal Trade Commission said yesterday (Wednesday). The $590 million all-stock purchase is part of Cisco's move into the consumer market, as its traditional routers and switches business slows down, according to Reuters.
Brazil's local bond yields hit an 18-month low on rising prices, as investors forecast the central bank will use interest-rate cuts to help boost growth in Latin America's largest economy. Analysts forecast the central bank will cut interest rates on April 29 to avoid a contraction of gross domestic product this year. Brazil's Finance Minister Guido Mantega said yesterday (Wednesday) the government will keep adopting measures to spur investment and support an economic recovery.