Wall Street Rumors - May 30, 2008
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Regulators Step Up Probes Of Trading in Oil Markets
U.S. regulators disclosed a broad nationwide probe into potential oil-market manipulation and said they are expanding surveillance of energy markets.
The move Thursday by the Commodity Futures Trading Commission, including its unusual announcement of an investigation in progress, comes after crude-oil prices topped $130 a barrel last week and tested all-time highs. On Thursday, light, sweet crude for July delivery settled $4.41, or 3.4%, lower at $126.62 a barrel on the New York Mercantile Exchange.
AMD Chief Brings Tattered Record to Turnaround Bid
Call it déjà vu, or a flashback, but Hector Ruiz has been here before. Ten years before the Advanced Micro Devices (NYSE:AMD) CEO’s current effort to keep his company afloat, Ruiz was caught in another strait. As the head of Motorola’s (NYSE:MOT) chip group, then the world’s third-largest semiconductor maker, Ruiz was the architect of a massive reorganization that upended Motorola’s manufacturing model, transformed its product strategy and resulted in the loss of thousands of jobs.
Kerkorian Says Ford Decline Won’t End Tender Offer
Billionaire Kirk Kerkorian said he won’t opt out of a plan to buy 20 million additional Ford Motor Co. (NYSE:F) shares after the equity fell 21 percent below his offer price, a show of support for the money-losing automaker.
Intrigue in Russia Ensnares BP Venture
BP PLC’s (NYSE:BP) partners in a Russian oil venture sought the ouster of the unit’s chief executive, escalating a dispute that could shape the future of the British energy giant and the role of foreign companies in Russia under the country’s new president.
Silverjet Stops Flights as Oil Costs Cripple Industry
Silverjet Plc (LON:SIL), the U.K. carrier founded 16 months ago to fly business travelers to New York, grounded planes after running out of cash, the industry’s latest casualty as spiraling fuel costs wipe out earnings.
Ex-Banker to Cooperate, Plead Guilty in UBS Probe
A former executive at Swiss bank UBS AG (NYSE:UBS) agreed to plead guilty to tax fraud and cooperate in the Justice Department’s probe of wealthy Americans evading taxes as new details emerged about how the alleged tax dodges worked.
Merchants Bank Agrees to Buy Wing Lung in $4.7 Billion Deal
China Merchants Bank Co. (SHA:600036), the nation’s most profitable lender, agreed to acquire control of Hong Kong’s Wing Lung Bank Ltd. in a cash deal valuing the company at $4.66 billion, two people with direct knowledge of the matter said.
MasterCard Soars to All-Time High
MasterCard (NYSE:MA) shares soared to an all-time high Thursday after the company offered a bullish near-term outlook, despite a slowdown in the U.S. economy. Executives at the Purchase, N.Y.-based card processor, during a four-hour long investor presentation, also said they expect double-digit revenue growth in 2008 and double-digit profit and revenue growth over the next few years.
Merger of United Airlines, US Airways Is Off the Table for Now
Plans to merge UAL Corp.’s (NASDAQ:UAUA) United Airlines and US Airways Group Inc. (NYSE:LCC) were suspended — for now — when UAL Chief Executive Glenn Tilton told his counterpart, Doug Parker, Thursday that United is very near an alliance agreement with Continental Airlines Inc. (NYSE:CAL), said two people familiar with the situation.
Dell Turnaround Gets Traction
Computer maker Dell Inc. (NASDAQ:DELL) said fiscal-first-quarter profit climbed 4% on a 9% sales increase in a sign that the company’s 18-month-old turnaround efforts are beginning to pay off. Dell, which has long derived the bulk of its sales from the U.S. computer market, benefited from strong sales gains overseas.
Novell Beats Estimates
While reaffirming full-year guidance Thursday, Novell (NASDAQ:NOVL) said it has been laying the groundwork for future growth. The Waltham, Mass., software company swung to a second-quarter profit Thursday, beating analysts’ estimates and reaffirming that it expects full-year revenue of $940 million to $970 million.
Bonds Insuring Next Hurricane Hugo Beat Anything in Subprime
The only good thing about hurricanes and earthquakes is the bonds that compensate for property losses caused by such disasters. As investors fled credit markets contaminated last year by unpaid subprime mortgages, demand increased for catastrophe bonds, whose yields can top 15 percent as long as disaster doesn’t strike.
IRS Scrutinizes Rabobank’s Dealings With Newell
The Internal Revenue Service is investigating allegations by a former Rabobank Group executive that the Dutch bank engaged in a $450 million transaction with Newell Rubbermaid Inc. (NYSE:NWL) to help the Atlanta consumer-goods company avoid paying taxes.
Tiffany Profit Beats Estimates on Overseas Sales
Tiffany & Co. (NYSE:TIF), the world’s second- largest luxury-jewelry retailer, said first-quarter profit rose 19 percent and forecast full-year earnings that may beat analysts’ estimates on a surge in jewelry sales abroad and foreign-tourist spending in the U.S.
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