Wall Street Rumors - April 18, 2008
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Citigroup Swings to Loss On Hefty Write-Downs
Citigroup Inc. (NYSE:C) posted a second-straight quarterly loss Friday, as the largest U.S. bank by assets booked at least $13.9 billion in write-downs stemming from its rush of risk-taking ahead of the credit crisis and saw $3.1 billion in extra consumer credit costs.
Surge in Natural-Gas Price Stoked by New Global Trade
Americans feeling the pain of record gasoline prices now face the likelihood of another fuel shock, from natural gas. Prices in the U.S. have risen 93% since late August as power-hungry nations like South Korea and Japan compete in a global natural-gas market that scarcely existed a half-decade ago.
Halliburton Weighs Rival Offer for Expro, People Say
Halliburton Co. (NYSE:HAL), the world’s second- largest oilfield-services provider, may offer to buy Expro International Group Plc (LON:EXR) to counter a 1.61 billion-pound ($3.2 billion) bid from Candover Partners Ltd., three people with knowledge of the talks said.
U.S., South Korea Announce Deal To End Ban on U.S. Beef Exports
The U.S. and South Korea have reached formal agreement on a plan to lift the Asian nation’s long ban on U.S. beef exports, removing a major impediment that has held up action in Congress on a trade pact that would tighten economic ties between the two nations.
Honeywell Net Climbs on Aerospace; Forecast Raised
Honeywell International Inc. (NYSE:HON), the world’s largest maker of cockpit displays, said first-quarter earnings rose 22 percent on sales of aircraft and building controls. The company said annual profit will be at the high end of its earlier range, and shares gained in early New York trading.
Oversea Growth Buoys Caterpillar Amid U.S. Economic Slowdown
Caterpillar Inc. (NYSE:CAT) posted a 13% gain in first-quarter net income as overseas growth and pricing girded the company against a U.S. building slowdown and higher costs.
AT&T to Lay Off 1.5% of Workers
AT&T Inc. (NYSE:T) said Friday it would cut 1.5% of its work force, mainly management workers, resulting in a first-quarter pretax charge…
Google Profit Rose 30%, Quelling Investor Fears
Google Inc.’s (NASDAQ:GOOG) go-go era apparently isn’t over. The Internet giant topped Wall Street estimates for first-quarter revenue and profit, and it said that the weak economy hadn’t hurt its business, as some investors had feared.
RBS Considers Share Sale to Lift Capital, Person Says
Royal Bank of Scotland Group Plc (NYSE:RBS), the U.K.’s second-biggest lender, is considering a share sale to shore up capital depleted by credit-related writedowns and its part in the acquisition of ABN Amro Holding NV (ABN Amro Holding NV) last year, according to a person with knowledge of the plan.
GE Airline-Engine Flap Further Mars FAA Oversight
In another embarrassing maintenance blunder involving the aviation industry, General Electric Co. (NYSE:GE) disclosed it is working with carriers and U.S. regulators to resolve questions about improperly certified parts in dozens of its jet engines.
UAW Strikes GM Lansing Plant
Union workers at a key General Motors Corp. (NYSE:GM) plant in Michigan walked off the job Thursday, in the latest sign the Big Three auto makers could have trouble reaping the benefits of concessions they won in labor contracts last fall.
Corin Gains After Partner Stryker’s Net Beats Targets
Corin Group Plc (LON:CRG), the U.K. maker of a new hip implant marketed by Stryker Corp. (NYSE:SYK), rose the most in more than a year in London trading after its U.S. partner’s earnings beat analysts’ estimates.
India Windmill Empire Begins to Show Cracks
After harnessing the breezes to build a $7 billion family fortune, Indian windmill magnate Tulsi Tanti is encountering heavy turbulence.
With lobbying, heavy borrowing and good timing, he turned Suzlon Energy Ltd. (BOM:532667) into the world’s fifth-largest windmill maker. Suzlon does roughly $1.8 billion in sales a year and has captured 8% of the U.S. market. Mr. Tanti ranks among the world’s richest green-power moguls.
Fannie Ex-Officials in Settlement
Federal regulators are expected to announce Friday a legal settlement with three former senior executives of Fannie Mae (NYSE:FNM) over their alleged roles in an accounting scandal that erupted at the mortgage company in 2004, according to people familiar with the situation.
Trian: Two Wendy’s Deals Rejected
Nelson Peltz’s Trian Partners LP said Wendy’s International Inc. (NYSE:WEN) rejected two proposed deals and that Trian intends to contact shareholders directly to hold a special meeting on the hamburger chain’s future.
Xerox Has First-Quarter Net Loss on Legal Settlement
Xerox Corp. (NYSE:XRX), the world’s largest maker of high-speed color printers, had a $244 million first- quarter loss after settling a securities lawsuit from 2000. Excluding those costs, Xerox matched analysts’ estimates.
Nestle May Say Sales Increased After Boosting Prices
Nestle SA (VTX:NESN), the world’s largest food company, will probably report an increase in first-quarter revenue after raising prices by the most in a decade.
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