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Jul 18, 2013

Detroit Files for Bankruptcy: NYT I Breaking News July 18, 2013.

BREAKING NEWS Thursday, July 18, 2013
Detroit Files for Bankruptcy
Detroit, the cradle of America’s automobile industry and once the nation’s fourth-most-populous city, has filed for Chapter 9 bankruptcy, an official said on Thursday. It is the largest American city ever to take such a course.
The decision to turn to the federal courts, which required approval from both the emergency manager assigned to oversee the troubled city and from Gov. Rick Snyder, is also the largest municipal bankruptcy filing in the nation’s history in terms of debt.


CNBC Latest Stories July 18, 2013.


Alaskans depleting salmon stocks; HSBC's $1 billion small business loans; Vancity recognized for social enterprise: BIV Today Business News July 18, 2013.


Conservationists accuse Alaskans of depleting B.C. salmon stocks

B.C. salmon-protection groups want Alaskan fishery managers to stop fishers from ... READ MORE

Real Estate and Development


Critics blast Rize's changes to Mount Pleasant project

Rize Alliance has substantially changed its controversial project at the corner of Kingsway Avenue and East Broadway to ... READ MORE

Small Business


HSBC to loan $1 billion to small businesses expanding overseas

Vancouver-based HSBC Bank Canada announced July 17 that it has earmarked $1 billion to ... READ MORE

Economy and Finance


Vancity recognized for social enterprise development

Vancouver credit union Vancity has been awarded the National Credit Union Community Economic Development Award for ... READ MORE

More News...

Montreal pharmaceutical company acquires Allon Therapeutics

Wholesale trade up in May: StatsCan

This Week's Issue


B.C. class action lawsuits allege deceptive airline billing

BC consumer legislation is at the centre of eight class action lawsuits that allege airlines have unfairly ... READ MORE

NYT International Herald Tribune July 18, 2013: Putin Critic Gets 5-Year Jail Term, Setting Off Protests.

July 18, 2013
Compiled 20:45 GMT

Global Update


Putin Critic Gets 5-Year Jail Term, Setting Off Protests

Aleksei A. Navalny, Russia's most resonant opposition voice and a Moscow mayoral candidate, was sentenced to five years in prison on embezzlement charges.

Moscow Trip for Obama May Be Off as Snowden Tensions Build

President Obama may cancel a meeting with President Vladimir V. Putin of Russia, where Edward J. Snowden has sought shelter.

Touring Refugee Camp, Kerry Sees Mounting Syrian Suffering

As frustrated refugees appealed for Western military intervention, Mr. Kerry's visit soon became a graphic illustration of the limits of Washington policy.

Video: Fun Factory: Blowing Off Steam in China

After spending a shift on the factory floor, young workers in China's manufacturing cities let loose.

Op-Ed Contributor

Children in the Fight Against Corruption

Liberia's adults are mired in a culture of endemic dishonesty. It's the young who must lead the moral revolution.

McCain to Block New Term for Joint Chiefs Chairman

Senator John McCain became angry with Gen. Martin E. Dempsey in an exchange over whether the administration was doing enough to aid Syrian rebels.

Retiring U.S. Envoy Faults Hong Kong and China on Snowden

The consul general, Stephen M. Young, suggested that Beijing intervened in Hong Kong affairs to let Edward J. Snowden flee the territory.

Palestinians Call Kerry's Formula for Talks Insufficient

The Palestinian leadership did not approve Secretary of State John Kerry's plan for reviving peace talks with Israel, dulling hope for a breakthrough.

Germany Backs Greece's Austerity Measures

Finance Minister Wolfgang Schäuble visited Athens and expressed "admiration" hours after Parliament approved a plan for laying off civil servants.

European Central Bank Eases Rules on Reselling Loans

Facing a credit squeeze in southern Europe, the central bank wants to make it easier for banks to raise money to make loans.

British Investigators Point to Transmitter Battery in 787 Fire

The Federal Aviation Administration said it would review recommendations by British authorities to disconnect the batteries in the emergency locator transmitters on all Boeing 787s.
Bits Blog

SoftBank Chief Hints at More Price Cuts for Sprint

SoftBank, the Tokyo-based Internet and mobile communications giant, has a reputation in Japan for undercutting rivals on price to gain market share.

Google Stumbles as Slump in Ad Rates Deepens

Google's financial performance faltered in the second quarter as a downturn in the Internet search leader's advertising prices deepened.

Microsoft Profit Below Estimates After Tablet Charge

Slow personal computer sales ate into the company's Windows business as it took a large unexpected charge for its inventory of unsold Surface tablets.
On Golf

Faldo Returns With a 79, and Some Advice for McIlroy

Nick Faldo, who won at Muirfield in 1987 and 1992, said Rory McIlroy, who also shot 79 on Thursday, should "just keep it minimal" and not squander his window for excellence.

Riblon Wins Stage of Dual Ascents; Froome Holds Lead

The French cyclist Christophe Riblon appeared to be in disbelief as he won Stage 18 of the Tour de France on Thursday, and Christopher Froome held on to the lead.

Watchdogs Seek Doping Clues From a Distance

A group of activists is scrutinizing the Tour de France for hints of doping by comparing current performances with past ones. But the fairness of their methods has been questioned.

Detroit Files for Bankruptcy

The city, the cradle of America's automobile industry and once the nation's fourth-most populous, is the largest in the nation ever to take such a course.

Dementia's Signs May Come Early

Doctors are starting to pay more attention to patients who say they are experiencing cognitive problems but do not yet show a measurable decline.

Potential Witness in Bulger Trial Is Found Dead

The body of Stephen Rakes, who said he was an extortion victim of James (Whitey) Bulger, was found in Lincoln, Mass., the authorities said.
Opinionator | Private Lives

A Bottle of Water in Brazzaville

One hot day in another country, I failed to help a thirsty man.
Op-Ed Columnist

Was Blind, but Now She Sees

The next stop on this year's win-a-trip journey is a village in Mali in West Africa where a 15-minute eye surgery gives villagers back their sight.
Op-Ed Columnist

The Cheney in Waiting

The Senate races aren't until next year, but things are already heating up in a few states. Have you seen Liz's video on YouTube?

DealBook P.M. Edition July 18, 2013: Dell Adjourns Vote on Deal as Some Big Investors Start to Shift

Thursday, July 18, 2013
Michael S. Dell, the founder of the computer company that bears his name.
Dell Adjourns Vote on Deal as Some Big Investors Start to Shift Dell adjourned a vote on its proposed $24.4 billion sale to its founder on Thursday morning, signaling that the planned transaction lacked enough support from shareholders.
    Finra Scrutinizes High-Speed Trading Firms The Financial Industry Regulatory Authority sent letters to 10 high-speed trading firms this week, asking for more information about their trading programs and the steps taken to avert "market disruptions."
    Deal Professor: Debating, Yet Again, the Worth of Law School A recent academic study is drawing a lot of criticism for quantifying the economic value of a law degree, but the study raises many valid points, says Steven M. Davidoff.
    Former Goldman Partner Darivoff Named Chairman of DFG Philip M. Darivoff, a recently retired Goldman Sachs partner, has been appointed chairman of DFG Investment Advisers, an asset management firm in New York.
    BlackRock Earnings Increase 32% The company's gains were driven largely by the broad rally in the stock market, which pushed up the value of BlackRock's products, especially its exchange traded funds known as iShares.
    James Gorman is the chief executive of Morgan Stanley.
    Morgan Stanley Posts 42% Rise in Profit and Sets Stock Buyback Morgan Stanley reported adjusted earnings for the second quarter that slightly beat analysts' estimates, driven by a strong performance from its wealth management unit and equity sales and trading.
    Breakingviews: Pressure Is on PepsiCo to Respond to Peltz's Overtures The financial logic of Nelson Peltz's proposals for Pepsi is compelling, says Jeffrey Goldfarb.
    Corporate Earnings Companies scheduled to report results on Friday include General Electric and Vodafone.
    Overseas On Friday, central bankers and finance ministers of the Group of 20 nations will meet for two days in Moscow, where they are expected to discuss topics that include Japan's economy, global stimulus efforts and tax evasion. Also on Friday, a federal judge in the United States will hold a hearing on final approval of Toyota's $1.1. billion in claims over unintended acceleration in its vehicles.

Wall Street at Close Report by MarketWatch July 18, 2013.

U.S. stock indexes climb to record highs

By Kate Gibson, MarketWatch 
NEW YORK (MarketWatch)U.S. stocks rose on Thursday, lifting benchmark indexes to record highs, after jobless claims fell and earnings from corporations including UnitedHealth Group Inc. topped expectations as investors heard from Federal Reserve Chairman Ben Bernanke

Surpassing its prior intraday record set on May 22, the S&P 500 index SPX +0.50% rose to a session high of 1,693.12. It closed up 8.46 points, or 0.5%, at 1,689.37, its 21st record close this year. 

Financials paced gains among its major 10 sectors, while telecommunications and information technology posted losses. 

“It’s earnings and Bernanke — that’s what is supporting the market and driving it higher,” said Chris Gaffney, senior market strategist at Everbank Wealth Management. 

Watch Dell, IBM
Alexandra Scaggs and host Michael Casey take a look what traders will be watching in market action, including Dell, IBM, and the price of gold. Photo: AP 

Bernanke spent a second day on Capitol Hill, discussing the outlook and Fed rate policy with the Senate Banking Committee. The Fed chief said that economic data since the last Fed rate-policy meeting have been “mixed” and it was “way too early” to make a judgment on when the central bank will slow down the pace of its asset purchases. 

“We’ve transitioned to a point where good news is good news, now that market participants have successfully acquired the knowledge that a reduction in QE is not less accommodation, that there is a difference between reducing quantitative easing and lifting the Fed funds rate,” said Art Hogan, a market strategist at Lazard Capital Markets. Bond buying by the Fed is also known as quantitative easing. 

Economic reports on Thursday had jobless claims falling by 24,000 to 334,000 last week from a revised 358,000 the week before, according to figures released by the Labor Department.

Dell buyout vote delayed

Paul Vigna, David Benoit and Angelo Zino discuss Dell's delay in its shareholder vote, and Kathleen Madigan looks at the state of the economy.

The Federal Reserve Bank of Philadelphia’s economic index this month rose to 19.8, the highest since March 2011, from 12.5 in June. 

In addition to equities, the U.S. dollar DXY +0.10% , longer-term Treasury yields 10_YEAR -0.04% , oil CLU3 +1.54% and gold GCQ3 +0.34% also rose. 

One factor behind the recent spike in long-term interest rates is the deleveraging of “excessively risky” investing, along with improving economic reports and Wall Street’s reactions to signals sent by the Fed, Bernanke said. 

The yield on the 10-year Treasury note 10_YEAR -0.04% rose to 2.541%, after falling to a two-week low Wednesday. The yield had jumped from 1.93% on May 21, a day before Bernanke said the Fed could reduce bond purchases if data indicate continuing improvement on the jobs front. 

After striking an intraday record of 15,589.40, the Dow Jones Industrial Average DJIA +0.50% closed up 78.02 points, or 0.5%, to 15,548.54, marking its 27th record close this year. Pacing the Dow’s gains, UnitedHealth Group Inc. UNH +6.52% rose 6.5% after reporting a larger-than-expected increase in second-quarter net income.
Dow component Intel Corp. INTC -0.36% retreated 3.8% after projecting third-quarter sales that could come in below expectations. International Business Machines Corp. IBM +1.77% climbed 1.8% after hiking its full-year earnings outlook. Read commentary about skepticism on IBM’s revenue growth.

“The top line is the biggest issue that a lot of these companies are facing,” said Paul Nolte, managing director at Dearborn Partners. 

“The general take is that revenue growth is generally weak, so companies are not selling more stuff. But we’re still making the bottom line work out OK through cost cutting and other methods,” Nolte added. 

Verizon Communications Inc. VZ -1.52% fell 1.5% after the wireless carrier reported a jump in earnings and revenue, with the latter coming in just shy of estimates. 

Shares of Morgan Stanley MS +4.37% rose 4.4% after the bank reported quarterly earnings that beat Wall Street estimates

Shares of EBay Inc. EBAY -6.73% fell 6.7% after it projected third-quarter sales below expectations.
The Nasdaq Composite COMP +0.04% gained 1.28 points to 3,611.28.

More than 668 million shares traded on the New York Stock Exchange. 

Composite volume approached 3.4 billion.

Obama touts benefits of health law

President Barack Obama touted the benefits of the Affordable Care Act to a skeptical public during a speech at the White House as part of an effort to build support for the health law. Photo: Getty Images. 
U.S. stock indexes closed slightly higher on Wednesday, with the S&P 500 up for a ninth session in 10, after Bernanke said the central bank’s proposed timetable to taper its asset purchases is not on a “preset” path. 

Unlike the volatility inspired by Bernanke’s past public statements, Wall Street remained little changed during his appearance Wednesday before a House panel. 

Among the companies that reported earnings after the bell on Thursday are Google Inc. GOOG -3.75% and Microsoft Corp. MSFT -6.01%

Kate Gibson is a reporter for MarketWatch, based in New York.

Wall Street at Close Report by CNBC july 18, 2013.

Dow, S&P 500 set record highs on Bernanke, upbeat earning

Stocks finished higher Thursday, with the Dow and S&P 500 setting fresh highs, boosted by a batch of upbeat economic reports and after Fed Chairman Ben Bernanke reiterated that monetary policy will remain highly accommodative, even as the central bank starts to pare back its bond buying.

(Watch: Art Cashin on real reason stocks are up today)
Name Price Change %Change
DJIA Dow Jones Industrial Average 15548.54
78.02 0.50%
S&P 500 S&P 500 Index 1689.37
8.46 0.50%
NASDAQ Nasdaq Composite Index 3611.28
1.28 0.04%

The Dow Jones Industrial Average climbed above its previous all-time high of 15,542.40. UnitedHealth and Bank of America led the blue-chip gainers.

The S&P 500 also topped its previous record of 1,687.18. The Nasdaq finished slightly higher after flirting with the flatline for most of the session. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, slid near 13.

"While the [S&P 500] price may or may not hold to set a new closing high (currently 1682.50, set July 15), the current price has pushed the market value of the S&P 500 (adjusted for float) to over $15 trillion for the first time ever," according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.

Major averages have been on a tear so far this year, with the Dow and S&P 500 both up more than 18 percent and the Nasdaq up nearly 20 percent.

Most key S&P sectors closed higher, led by energy and financials, while telecoms lagged.
Art Cashin: Philly Fed, not Bernanke boosts rally
CNBC's Bob Pisani and Art Cashin, of UBS, discuss what is likely driving stock to record highs.
Bernanke returned to Capitol Hill to testify before the Senate Banking Committee on the economy and QE after reassuring the markets Wednesday that there was no concrete timetable for the Fed to scale back its bond purchase program. "Our asset purchases depend on economic and financial developments, but they are by no means on a preset course," Bernanke said in his statement to the U.S. House of Representatives Financial Services Committee. Bernanke also emphasized that there could be a lengthy time-lag between the end of asset purchases and a hike in interest rates. "People are finally figuring out the Fed's inability to raise interest rates," said Lance Roberts, CEO and Chief Strategist of StreetTalk Advisors. "The big consensus seems to be that tapering will happen sometime by year-end, but the economic traction so far just isn't there." Roberts warned that stocks may have run too far too fast and expects a sizable correction in the second half as "fundamentals play catch up" after the QE-induced rally. The FOMC is scheduled to meets on July 30-31 and September 17-18. Bernanke is expected to hold a news conference following the September meeting. On the economic front, weekly jobless claims dropped by 24,000 to a seasonally adjusted 334,000, according to the Labor Department, to its lowest level in four months. Economists polled by Reuters expected first-time applications to fall to 345,000 last week. Business activity in the mid-Atlantic region jumped to its best level since March 2011, according to the Philadelphia Federal Reserve, with the index at 19.8 in July, versus 12.5 in the month prior. Any reading above zero indicates an expansion. And leading indicators, a gauge of future U.S. economic activity, was flat at 95.3 in June, hovering around a five-year high, according to the Conference Board. Economists polled by Reuters had expected a 0.3 percent gain after a previously reported 0.1 percent rise. Traders also focused on a handful of earnings reports. (Read More: Earnings: the good, the bad, and not so ugly) Morgan Stanley spiked higher after the financial giant topped quarterly expectations as revenue grew in all of its major businesses, particularly trading and underwriting. Elsewhere, Verizon edged past earnings expectations by a penny a share, thanks to strong growth at its Verizon Wireless venture with Vodafone Group. Fellow Dow component UnitedHealth gained after the health insurance giant beat forecasts as more people signed up for plans. IBM gained after the tech giant posted earnings that topped expectations and raised its full-year outlook, though the company missed on revenue.
On the downside, Ebay slumped to lead the Nasdaq 100 laggards after the online auction company handed in current-quarter and full-year guidance that were below estimates, with CEO John Donahoe warning of economic "headwinds" in the second half of the year from Europe and South Korea. In addition, at least five brokerages slashed their price target on the company. And Intel declined after the chipmaker lowered its full-year revenue guidance and said it is paring back capital spending amid contracting PC sales and economic weakness in China. Google, Microsoft, Advanced Micro, Chipotle Mexican Grill and Capital One are among notable companies scheduled to post results after the closing bell. So far, 81 S&P 500 companies have reported results this quarter, with 70 percent of companies topping earnings expectations and 49 percent beating revenue estimates, according to data from Thomson Reuters. If all remaining companies report earnings in line with estimates, earnings will be up 3.5 percent from last year's second quarter. "We saw huge reduction in earnings estimates, so we're beating an artificial hurdle," said Roberts. "But the key thing is revenue—that's the one thing companies can't fix." Meanwhile, the special Dell shareholder meeting to vote on Michael Dell and Silver Lake's $24.4 billion buyout proposal was adjourned and rescheduled for July 24, in a sign the board needs more time to rally support. European shares were higher, but gains were limited by some lackluster earnings reports. In Asia, the Japanese Nikkei index hit an eight-week high, boosted by the weak yen.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: