Europe rebounds as Ukraine rebels hand over black boxes
By Marc Jones LONDON (Reuters) - European markets rode a global rebound in risk appetite on Tuesday helped by the first signs of cooperation from Ukraine's pro-Russian separatists over the downed Malaysian Airlines plane. It helped settle the recent market nerves, lifting shares both in Europe and Asia and pushing back many safe-haven assets like the yen, gold and government bonds that have been in demand over the last week. Europe's FTSEurofirst 300 index was up 0.7 percent as the main bourses in London , Frankfurt and Paris all climbed, while dollar-traded Russian stocks in Moscow saw their first rise in almost two weeks. The rebound in risk was also aided by more solid U.S. company earnings and merger activity in the previous session, though analysts remained wary about Ukraine and Russia given the delicate situation.
China food scandal spreads, drags in Starbucks, Burger King and McNuggets in...
By Adam Jourdan SHANGHAI (Reuters) - The latest food scandal in China is spreading fast, dragging in U.S. coffee chain Starbucks, Burger King Worldwide Inc and others, as well as McDonalds products as far away as Japan. McDonalds Corp and KFCs parent Yum Brands Inc apologized to Chinese customers on Monday after it emerged that Shanghai Husi Food Co Ltd, a unit of U.S.-based OSI Group LLC, had supplied expired meat to the two chains. On Tuesday, Starbucks said some of its cafes previously sold products containing chicken originally sourced from Shanghai Husi, a firm that was shut down on Sunday by local regulators after a TV report showed staff using expired meat and picking up meat from the floor to add to the mix.
Fund managers unconvinced by Apple rebound
By David Randall and Edwin Chan NEW YORK/SAN FRANCISCO (Reuters) - Apple, once a can't-miss stock, is finding it tough to persuade portfolio managers to come back into the fold. Yet the company remains one of the most significantly underweighted stocks among large cap fund managers, according to a Goldman Sachs report. Part of the reason for a lack of portfolio manager enthusiasm is that Apple Inc no longer seems to be the hot growth company of old, fund managers say. Apple reports results for its fiscal third quarter on Tuesday, July 22.
Obama, Biden highlight job-training in middle-class push
President Barack Obama and Vice President Joe Biden will put a spotlight on job-training programs on Tuesday as part of a White House push to boost economic opportunities for middle-class Americans, an important voting group in November elections. Obama will sign the "Workforce Innovation and Opportunity Act," which the White House said would help "improve business engagement and accountability across federally funded training programs." Biden, who is a potential 2016 presidential candidate, will unveil a new report that will show the results of a study about how to make federal training programs more successful and better tailored to employers' needs. The administration plans to work with elected officials and leaders in businesses, unions, and academia to replicate training strategies that work well, the White House said. Obama made fighting for the middle class the top theme of his successful 2012 re-election campaign.
Netflix profit doubles on U.S., foreign subscriber growth
Netflix Inc said on Monday its quarterly profit more than doubled, boosted by strong growth in U.S. and international subscribers as a price increase for its most popular U.S. video streaming plan did not deter new users. Netflix added 570,000 U.S. customers in the second fiscal quarter ended June 30, passing 50 million worldwide subscribers for the first time. The company suffered a consumer exodus and stock plunge after it announced an unpopular price increase in July 2011. Netflix executives also said they were contemplating an eventual move into China, the world's most populous country.
Airbus conducts rejected take-off test on new A350
PARIS (Reuters) - Airbus has carried out a high-speed rejected take-off test for its new A350 airliner, the planemaker said on Tuesday. The test is a key step towards European safety certification which industry sources expect in late August or early September. Airbus plans to deliver its first carbon-composite jetliner to Qatar Airways by the end of the year. The braking trial is one of the costliest tests in the certification process and involves directing maximum energy to a set of worn-out brakes, causing an orange glow and smoke as the brakes reach a temperature of 1,400 degrees Celsius. ...
Argentina asks U.S. judge to put debt payment order on hold
By Nate Raymond NEW YORK (Reuters) - Argentina asked a U.S. judge on Monday to put on hold an order requiring it to pay bondholders who did not participate in debt restructurings following the country's 2002 default, while it seeks a "global resolution." Ahead of a July 30 deadline to reach a deal or face a new default, Argentina filed papers asking a New York federal judge to stay a ruling that it pay the holdout investors $1.33 billion plus interest. Argentina, which has been in settlement talks, said any deal must take into account other bondholders and factor in a clause in its restructured bonds that could open it up to further liability. "As those risks remain, so does the necessity and appropriateness of a stay," Argentina's lawyers wrote. The request is not the first time Argentina has asked for a stay, which U.S. District Judge Thomas Griesa has previously denied.
Apple asks suppliers to produce up to 80 million large-screen iPhones: WSJ
(Reuters) - Apple Inc has asked suppliers to manufacture between 70 million and 80 million of its two forthcoming large-screen iPhones by the end of the year, its largest initial production run of iPhones, the Wall Street Journal reported, citing people familiar with the matter. Its forecast for the iPhones with 4.7-inch (11.9-cm) and 5.5-inch (14-cm) displays is much larger than the initial order last year of between 50 million and 60 million for iPhone 5S and 5C models, the people told the Journal. Foxconn and Pegatron Corp plan to start mass producing the 4.7-inch iPhone model next month, and Hon Hai Precision Industry Co Ltd, whose parent is Foxconn, will begin making the 5.5-inch version exclusively in September, the people said.
Credit Suisse posts big loss after U.S. tax settlement
Credit Suisse Group AG reported its biggest quarterly loss since the peak of the financial crisis in 2008, the result of a 1.6 billion Swiss franc ($1.78 billion) settlement with U.S. authorities over helping its clients evade taxes. The Swiss bank also said it would quit commodities trading, reversing a statement of just two months ago, as it continues to overhaul its investment bank to get back to double-digit capital returns from its remaining activities. Credit Suisse's fixed income unit outshone both its wealthy client unit and its U.S. rivals with a 4 percent rise in sales and trading. Credit Suisse said the investment bank cuts would allow resources and funds to be reassigned to its private bank, which disappointed investors with a 39 percent drop in revenue and swung to a loss due to the fine.
Asian shares tentative on lingering geopolitical tensions
Malaysia has reached an agreement with the leader of the separatist group to retrieve the bodies of the victims from last week's downing of a Malaysia Airlines passenger jet as well as the plane's two black boxes, Malaysian Prime Minister Najib Razak said on Tuesday. Meanwhile, in the Gaza Strip, the Palestinian death toll jumped to more than 500 and Israeli losses mounted as well, as the United States stepped up efforts to secure a ceasefire.
Comcast 2Q earnings top views on Internet hookups
PHILADELPHIA (AP) — Comcast Corp.s second-quarter net income rose 15 percent to nearly $2 billion as it added high-speed Internet customers at a faster pace than a year ago and video subscriber losses moderated.
Detroit retirees back pension cuts by a landslide
DETROIT (AP) — A year after filing for bankruptcy, Detroit is building momentum to get out, especially after workers and retirees voted in favor of major pension changes just a few weeks before a judge holds a crucial trial that could end the largest public filing in U.S. history.
DuPont 2Q profit climbs 3.9 percent
WILMINGTON, Del. (AP) — DuPont Co. (DD) on Tuesday reported net income that climbed by 3.9 percent in its second quarter. The results matched analysts expectations.
CIT Group buying OneWest Bank in $3.4B deal
NEW YORK (AP) — CIT Group is buying regional bank OneWest Bank in a $3.4 billion cash-and-stock deal.
World stocks rise as Ukraine plane tensions ease
TOKYO (AP) — World stock markets rose Tuesday as tensions over the downing of a passenger jet in Ukraine eased after pro-Moscow separatists released a train packed with bodies and handed over the aircraft's black boxes.