Wall Street dips as investors mull Fed tapering after budget deal
By Angela Moon NEW YORK (Reuters) - Wall Street fell modestly on Wednesday as investors weighed the possibility of a wind-down of U.S. Federal Reserve stimulus in the wake of a provisional budget deal reached in Wahington. The agreement, reached late Tuesday, would end three years of impasse and fiscal instability in Washington that culminated in October with a partial government shutdown. While the deal removes a key uncertainty hanging over markets, some say it strengthens expectations that the U.S. central bank may soon scale back its $85 billion-a-month stimulus that has fueled a stock market rally this year. All eyes are on any (Fed) tapering in December and while the deal removes some political uncertainties, it makes tapering more possible," said Karyn Cavanaugh, market strategist with ING U.S. Investment Management in New York.
Wed, 11 Dec 2013 10:32:27 -0500
U.S. poised for stronger growth in 2014, Fed to taper by March: Reuters poll
By Lucia Mutikani WASHINGTON (Reuters) - U.S. growth is set to accelerate in 2014 as the headwinds from a tightening of fiscal policy fade, giving the Federal Reserve room to start dialing back its monetary stimulus, a Reuters poll showed. From employment to consumer spending and housing, the foundation is being laid for sustained strong growth, economists said when surveyed. "The fiscal restraint in 2014 will be significantly less than in 2013," said Ryan Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania. "Uncertainty has hurt the economy over the last few years and as it fades, that should provide a lift to growth next year." The poll of more than 60 economists taken this week forecast GDP growth stepping up to a 2.5 percent annualized rate in the first quarter of 2014, and reaching 3 percent by year-end.
Wed, 11 Dec 2013 11:06:20 -0500
Advantage picks buyer, settles vehicle lease deal with Hertz
(Reuters) - Advantage Rent A Car said it picked Canadian private equity Catalyst Capital Group Inc to buy its assets in bankruptcy proceedings and reached a deal with Hertz Global Holdings Inc that allows Advantage to continue using a leased vehicle fleet. Advantage had to file for bankruptcy protection last month after Hertz terminated their vehicle lease agreements, saying Advantage had failed to make some payments on 24,000 vehicles. Hertz has now agreed to let Advantage to continue to use the vehicles in return for payments, Simply Wheelz LLC, which does business as Advantage, said in a court document on Tuesday. Hertz sold Advantage to Franchise Services of North America (FSNA) last year to satisfy antitrust authorities, following its purchase of Dollar Thrifty, which competes with Advantage in low-cost car rentals.
Wed, 11 Dec 2013 11:21:55 -0500
Peugeot and Dongfeng agree deal outline: FT
PARIS (Reuters) - PSA Peugeot Citroen and Dongfeng Motor Group have agreed on the main terms of an alliance backed by a 3-4 billion-euro ($4.1-$5.5 billion) capital injection for the French carmaker, the Financial Times reported on Wednesday. Peugeot had no immediate comment. Shares in Peugeot were down 0.43 percent at 1555 GMT (10:55 A.M. EST), having earlier fallen more than 3 percent. ...
Wed, 11 Dec 2013 10:58:59 -0500
Avon to stop order management technology roll-out; cuts 650 jobs
(Reuters) - Avon Products Inc , the world's largest direct seller of cosmetics, said it will halt the further roll-out of its order management technology and cut about 650 jobs. Avon, which has been struggling with declining sales, launched the technology in 2009 to improve interaction with its sales representatives. However, sales in Canada fell in the company's most recent quarter due to disruption caused by the technology, known as service model transformation project.
Wed, 11 Dec 2013 10:57:59 -0500
For Fed, delivering a message on policy path is new focus
By Jonathan Spicer and Ann Saphir NEW YORK/SAN FRANCISCO (Reuters) - Now that the central question before the Federal Reserve has shifted from whether to cut its extraordinary stimulus to when exactly to pull back, the debate at next week's meeting will center on how best to communicate that plan. While recent and brisk improvements in the labor market have raised the chance that policymakers might taper at their meeting next week, most economists expect the Fed to keep its $85 billion-a-month bond-buying program in place for a bit longer. But the Fed is expected to grapple with how much to telegraph about any plan to wind down its purchases, and to reinforce its commitment to keeping interest rates near zero even as it preps markets for the long road back to policy normalcy. "What should be on the table is, Are there adjustments to our forward guidance that would reinforce the overall stance of policy that the Fed is trying to communicate?" the president of the Atlanta Fed, Dennis Lockhart, who is often seen as a bellwether for overall U.S. monetary policy, told reporters last week.
Wed, 11 Dec 2013 10:37:45 -0500
Union machinists held talks with Boeing on 777X
(Reuters) - The union representing Boeing Co's Seattle area machinists said its leaders had met with top executives of the airplane maker on Tuesday about restarting talks that could see the new 777X jetliner built in Washington state, where the current 777 is built. The meeting came after union members last month roundly rejected a labor contract offer by Boeing that would have ensured the new jet was built in the Seattle area. On its website, the International Association of Machinists District 751 said its president, Tom Wroblewski, and other union representatives had met on Tuesday with Boeing Commercial Airplanes Chief Executive Ray Conner and other executives from the company. "No proposals were exchanged." Boeing confirmed that the meeting with Conner and other Boeing officials took place.
Wed, 11 Dec 2013 10:27:38 -0500
UK fraud prosecutor launches review after Dahdaleh case collapses
Britain's leading fraud prosecutor said on Wednesday it would launch a full review of the circumstances that led to the collapse of the high-profile corruption trial of British Canadian businessman Victor Dahdaleh. "As with all our casework, the SFO (Serious Fraud Office) will undertake a full review of the circumstances of this case with a view to learning any lessons that can be applied to future cases," the agency said in an emailed response to questions. The SFO on Tuesday called off the prosecution of Dahdaleh, who was accused of paying some $67 million in bribes to former managers of Aluminium Bahrain (Alba) , including a member of Bahrain's royal family, in return for a cut of contracts worth over $3 billion. The sudden collapse of Dahdaleh's trial, which began on November 5 and had been expected to run into 2014, follows other high-profile failures by the SFO that has put the agency under pressure to deliver some significant convictions.
Wed, 11 Dec 2013 10:56:45 -0500
Three more Swiss banks join U.S. tax deal
Three more Swiss banks said they would work with U.S. officials in a crackdown on wealthy Americans evading taxes through hidden offshore accounts, a trickle that could rise to about one third of the country's private banks. Eleven listed banks, such as private banks EFG International and VP Bank and a host of small, largely retail players including local government-backed cantonal banks, have yet to tell shareholders what they intend to do.
Wed, 11 Dec 2013 10:18:25 -0500
India toughens insider trading rules
By Himank Sharma MUMBAI (Reuters) - India's financial market regulator unveiled new proposals on Wednesday, broadening the scope of who can be held liable for insider trading violations, as it steps up its fight against securities fraud. The Securities and Exchange Board of India (SEBI) plans to include company employees, directors and their immediate relatives and other stakeholders such as founders, handling market sensitive information under its purview. SEBI has long sought greater powers to investigate securities fraud, which many analysts say is undermining confidence in the stock market, particularly among retail investors. In May India's Prime Minister Manmohan Singh urged SEBI to root out the "disease of insider trading" from stock markets.
Wed, 11 Dec 2013 10:33:53 -0500
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