Financial News from Reuters

  • Wall Street values Tesla Motors at $620,000 per car Reuters - 3 minutes 25 seconds ago
    Wall Street values Tesla Motors at $620,000 per car

    Company founder and CEO Elon Musk may not mention Tesla Motors Inc's (TSLA.O) stock price when his electric car company gives its latest financial update on Wednesday, but it will be front and center for investors divided over its seemingly rich valuation. After a rally that ended in April, Tesla's market capitalization is currently about $31 billion - equivalent to $620,000 for every car it delivered last year, or $63,000 for every car it hopes to produce in 2020. By comparison, General Motors Co's (GM.N) $48 billion market value is equivalent to about $4,800 for every vehicle it sold last year.

  • Steven Cohen: hedge fund crowding caused major February loss Reuters - 5 minutes ago
    Steven Cohen: hedge fund crowding caused major February loss

    Billionaire investor Steven Cohen said that too many hedge funds placing the same types of bets contributed to sharp losses for his $11 billion Point72 Asset Management earlier this year. "One of my biggest worries is that there are so many players out there trying to do similar strategies," Cohen said Monday, speaking at the Milken Institute Global Conference in Los Angeles. Cohen also commented on the hedge fund industry's relatively large size and meager recent returns, saying that both investors and their clients were willing to tolerate lower performance.

  • Bidders emerge for Tata Steel's UK assets Reuters - 7 minutes ago

    Two groups signalled their interest in buying the British assets of Tata Steel on Tuesday, offering hope that thousands of jobs could be saved after weeks of uncertainty. Sanjeev Gupta's metals group Liberty House and a management buyout team called Excalibur said they had submitted an initial expression of interest in buying the assets ahead of a 1600 GMT deadline. The two groups had been racing to submit their interest after India's Tata Group announced plans in March to sell its entire UK steel operation, which had been hit by cheap Chinese imports, soaring costs and weak demand.

  • Japan finance minister ready to respond to stem yen's rise Reuters - 8 minutes ago

    Japan is concerned about the "speculative" and abrupt firming of the Japanese yen and will respond if necessary to stem the currency's rise, Finance Minister Taro Aso told a news conference in Frankfurt on Tuesday. "The economy is a living animal... one-sided, abrupt movements could have adverse impact on the economy, which is not desirable," Aso said, adding that any steps taken will be in accordance with G20 agreements. Speaking alongside Aso, Bank of Japan Governor Haruhiko Kuroda added that the bank would not hesitate to take additional steps to achieve its inflation target.

  • Glencore considers selling gold mine worth over $2 billion: sources Reuters - 9 minutes ago
    Glencore considers selling gold mine worth over $2 billion: sources

    Mining company Glencore is considering selling its Vasilkovskoye gold mine in Kazakhstan, sources close to the deal said on Tuesday, confirming an earlier report in the Financial Times. Two other sources said the assets were on offer and all three sources said Glencore had appointed Deutsche Bank and BMO Capital Markets as advisers. Along with other big mining companies, Glencore is looking to sell assets to reduce high levels of debt following a plunge in commodity prices and a fall in Chinese demand for raw materials.

  • Delaying expenses helps Estee Lauder's Q3 profit, hurts forecast Reuters - 12 minutes ago

    Cosmetics maker Estee Lauder Cos Inc reported a better-than-expected profit in the third quarter as it shifted some expenses into the current quarter, analysts said, a move that limited the company's ability to raise its forecast. Also, Estee Lauder's quarterly sales, excluding the effect of currency, did not rise as much as analysts expected, helping send the company's shares down as much as 3.7 percent on Tuesday. Estee Lauder raised its full-year profit forecast to $3.09-$3.14 per share from $3.07-$3.12, attributing the increase only to a smaller impact from the dollar.

  • U.S. kills 39,000 turkeys in outbreak of mild bird flu -OIE Reuters - 16 minutes ago

    U.S. authorities destroyed 39,000 turkeys in Missouri due to an outbreak of a mild form of avian flu, the World Organization for Animal Health said on Tuesday, as officials remained on alert for new cases. State authorities also have begun a quarantine and taken surveillance measures around the farm in Jasper County that was hit with the H5N1 strain of the virus to watch for other cases, according to the Missouri Department of Agriculture. The outbreak, which was detected late last month, is considered low pathogenic, meaning it is not as contagious or deadly as other varieties of the disease.

  • Brazil judge rules to unblock Whatsapp Reuters - 22 minutes ago
    Brazil judge rules to unblock Whatsapp

    A Brazilian judge overturned a suspension of Facebook Inc's Whatsapp messaging application on Tuesday, before a 72-hour block ordered by a different judge on Monday had expired. Judge Ricardo Mucio Santana ...

  • S.African central bank "not comfortable" with private equity plays for banks Reuters - 28 minutes ago

    South Africa's central bank is not comfortable with private equity firms pursuing any of the major banks up for sale in Africa's most advanced economy, its deputy governor said on Tuesday. "As a regulator, we would not be comfortable with private equity play for any of the banks," said deputy governor Kuben Naidoo.

  • Norway suspects technical fault in fatal helicopter crash Reuters - 28 minutes ago

    "The investigation will now solely be focused on potential root causes of a technical failure, such as design, production, and/or maintenance," Airbus Helicopters said in a statement. Design and production are the responsibility of Airbus Helicopters, while maintenance is handled by the operator, CHC Helicopter.

  • Lower ad sales, higher costs pull down New York Times profit Reuters - 31 minutes ago
    Lower ad sales, higher costs pull down New York Times profit

    The New York Times Co's adjusted operating profit fell 13 percent in the first quarter as ad sales declined in its print and digital businesses and costs rose. Shares of the publisher, which is spending ...

  • Afreximbank seeks to raise $3 bln this year - bank president Reuters - 31 minutes ago

    The African Export-Import Bank (Afreximbank) will seek to raise around $3 billion this year via Eurobonds, syndications and bi-lateral and institutional lending in order to finance its activities, the bank's president told Reuters on Tuesday. "We are going to issue a Eurobond very soon. Afreximbank would also seek to increase deposits from the central banks of member countries to $10 billion from $3 billion currently, Oramah said.

  • Mexico cenbank seen steady after peso rally, weak US growth Reuters - 32 minutes ago

    Mexico's central bank is expected to hold its key lending rate steady on Thursday, a Reuters poll of analysts showed on Tuesday, and policymakers are seen hiking less this year after a modest recovery in the peso. All 25 analysts surveyed said they expect the Banco de Mexico to keep the benchmark interest rate at 3.75 percent. The central bank is due to announce its decision at 13:00 local time (1900 GMT) on Thursday.

  • Global stocks slide on global growth worries, U.S. yields fall Reuters - 32 minutes ago
    Global stocks slide on global growth worries, U.S. yields fall

    Stock markets worldwide fell on Tuesday after weak Chinese factory data and a surprise rate cut by Australia's central bank unnerved investors, sending benchmark Treasury yields to nearly two-week lows. The drop in oil prices helped push the S&P 500 energy index (.SPNY) down more than 2.3 percent, making it the leading decliner among the 10 major S&P sectors. The Reserve Bank of Australia cut interest rates to a record low of 1.75 percent, the first easing in a year.

  • GLOBAL MARKETS-Stocks slide on global growth worries, U.S. yields fall Reuters - 34 minutes ago

    Stock markets worldwide fell on Tuesday after weak Chinese factory data and a surprise rate cut by Australia's central bank unnerved investors, sending benchmark Treasury yields to nearly two-week lows. Activity at China's factories shrank for the 14th straight month in April as demand stagnated, a private survey showed. The drop in oil prices helped push the S&P 500 energy index down more than 2.3 percent, making it the leading decliner among the 10 major S&P sectors.

  • Liberty House Group confirms bid for Tata Steel UK Reuters - 35 minutes ago

    Metals group Liberty House confirmed on Tuesday it had formally submitted a letter of intent to buy the British assets of Tata Steel. Liberty reiterated that it plans to shift Tata Steel UK's operations ...

  • US rule would shield failed banks from hedge funds in future crisis Reuters - 38 minutes ago

    Big U.S. banks will have greater protection from hedge funds in a future financial crisis under a Federal Reserve proposal released on Tuesday that would require some investors to wait 48 hours before cutting ties with failing lenders. The two-day pause is meant to prevent a chaotic unraveling of investments like what was seen during the 2008 financial crisis and failure of Lehman Brothers Holdings Inc. At that time, desperate investors tried to void ties to Lehman after it sought bankruptcy protection, helping to spread panic in global financial markets.

  • Oil slides second straight day as glut worries return Reuters - 47 minutes ago

    Oil prices fell for a second day on Tuesday, retreating further from the year's highs hit last week, as rising output renewed worries about the global glut of crude, the U.S. dollar rebounded and equity ...

  • U.S. Fed awards $38.54 bln reverse repos Reuters - 53 minutes ago

    The Federal Reserve on Tuesday awarded $38.54 billion of one-day, fixed-rate reverse repurchase agreements to 27 bidders at an interest rate of 0.25 percent, the New York Fed said on its website. The reverse repurchase agreement program is seen as a critical policy tool for the U.S. central bank to drain money from the financial system in an effort to achieve its interest-rate objectives.

  • Shares of hospital operator HCA fall despite profit beat Reuters - 54 minutes ago

    Shares of HCA Holdings Inc, the largest U.S. for-profit hospital operator, fell about 3 percent on Tuesday after it posted a quarterly profit that exceeded analyst estimates on higher patient admissions but disappointed investors who had expected a stronger performance. HCA said the first-quarter results were in line with internal projections. "The first quarter was another quarter of solid volume growth for the company," HCA Chief Operating Officer Sam Hazen said on a conference call.

  • Barclays Libor training should have been better, boss tells court Reuters - 1 hour 0 minutes ago
    Barclays Libor training should have been better, boss tells court

    Barclays (BARC.L) should have given its traders more training on Libor and tighter rules on their communications, a senior executive at the British bank told the trial of five former bankers charged with manipulating the benchmark. Harry Harrison, the co-head of Barclays' non-core division, told the London court on Tuesday that he had learnt during on-the-job training about the importance of setting Libor benchmark interest rates independently from a bank's commercial interests. Harrison said he expected his colleagues to have been equally aware of this distinction, although Barclays should have provided more formal training on the issue and been clearer about what was acceptable in their conversations.

  • Teachers' 'sickout' shuts Detroit public schools again Reuters - 1 hour 6 minutes ago

    Nearly all of Detroit's public schools were closed for a second straight day on Tuesday as teachers called in sick to protest news the cash-strapped school system will run out of money to pay employees at the end of June. Ninety-four of the city's 97 public schools were closed as a result of the "sickout," said Chrystal Wilson, a spokeswoman for Michigan's largest public school system. The teachers' union, the Detroit Federation of Teachers, said in a statement it is seeking a guarantee teachers will get paid for their work.

  • European shares end at three-week low, led down by miners, banks Reuters - 1 hour 7 minutes ago

    LONDON/MILAN, May 3 (Reuters) - European shares fell to a three-week low on Tuesday, with Commerzbank leading the decline after a slump in profits and mining stocks falling along with metals prices. Germany's Commerzbank fell 9.6 percent after posting a 52 percent drop in first-quarter net profit, hit by volatile capital markets and low interest rates. "The numbers for the first quarter did not come in well ... However, external factors that have also hit other banks hard appear to be the main reason for that," said Landesbank Baden-Wuerttemberg analyst Ingo Frommen in a note.

  • Germany's Schaeuble rules out 'big Greece crisis' this year Reuters - 1 hour 7 minutes ago

    German Finance Minister Wolfgang Schaeuble said on Tuesday that he did not expect a "big crisis" to erupt this year in Greece, which is in talks with lenders on concluding its bailout review to unlock new funds and debt relief. "We will have no big Greece crisis this year," Schaeuble said, adding that the country was on its way to making visible progress.

  • Funds moving back into online education firm 2U after short-seller report Reuters - 1 hour 11 minutes ago

    Educational technology company 2U Inc could be poised for a comeback, a little more than six months after a report from noted short-seller Citron Research sliced its share price nearly in half. Prominent fund companies William Blair, Franklin Templeton and Fidelity Investments increased their positions by 10 percent or more in their most recent quarters, according to Morningstar.

  • Germany attacks 'illegitimate' dividend tax avoidance scheme Reuters - 1 hour 14 minutes ago

    The German government has again criticised schemes to help foreign institutional investors avoid a dividend withholding tax, following new media allegations of their widespread use, with Commerzbank pledging on Tuesday to stop offering such services before the tax loophole is blocked by a new law. Under current German law domestic funds can claim a credit on a 15 percent withholding tax paid on dividends which foreign funds cannot.

  • U.S. firm to turn Britain's red phone boxes into mini-offices Reuters - 1 hour 14 minutes ago

    A former venture capitalist is planning to restore the former glory of Britain's famous red telephone boxes by turning some of them into mini-offices for on-the-go workers. Jonathan Black, chief executive of New York City-based Bar Works Inc, said his company was refitting phone booths in five British cities with 25-inch screens, scanners, printers, a wireless mouse and WiFi connection - as well as free coffee. The phone boxes will operate using the same model.

  • Wall St. down sharply amid growth fears, oil slide Reuters - 1 hour 14 minutes ago
    Wall St. down sharply amid growth fears, oil slide

    Activity at China's factories shrank for 14 straight months in April as demand stagnated, a private survey showed. Oil prices dropped about 2 percent as rising output from the Middle East renewed concerns about global oversupply. The CBOE Volatility index (.VIX), often called Wall Street's fear index, rose 9.2 percent to 16.03.

  • Halliburton aims to boost weak businesses after failed Baker Hughes deal Reuters - 1 hour 16 minutes ago
    Halliburton aims to boost weak businesses after failed Baker Hughes deal

    The deal would have helped Halliburton better compete with market-leader Schlumberger (SLB.N) for the dwindling number of contracts from oil producers as crude prices stay stubbornly low. While Halliburton is the market-leader in fracturing, cementing, and completion services, acquiring Baker Hughes would have boosted its artificial lift and production chemicals businesses, where the company is not dominant. "We are going to invest in those product lines where we're a little bit weak, and we'll look at selective acquisitions to round them out," Halliburton Chief Executive Dave Lesar said on a post call with analysts.

  • U.S. charges nine over alleged ForceField Energy fraud Reuters - 1 hour 19 minutes ago

    U.S. prosecutors on Tuesday unveiled criminal charges accusing nine people of defrauding investors into buying the stock of LED lighting provider ForceField Energy Inc, causing roughly $131 million of ...

  • Yelp surges on Einhorn stake but some on social media are skeptical Reuters - 1 hour 26 minutes ago
    Yelp surges on Einhorn stake but some on social media are skeptical

    Shares of Yelp Inc shot to a three-month high on Tuesday morning after hedge fund manager David Einhorn unveiled a new stake, but seesawing social media sentiment among active traders signaled skepticism about the business review site's longer-term prospects and Einhorn's prowess as a stock picker. In active mid-day trading, Yelp shares were up 3.3 percent at $22.25. Einhorn, the head of Greenlight Capital, said his firm made new investments in Yelp, according to the fund's first-quarter letter to investors, which was seen by Reuters.

  • South Africa's central bank sees February budget stalling debt decline Reuters - 1 hour 30 minutes ago

    South Africa's debt outlook will not deteriorate further if it sticks to the austere budget tabled in February, Central Bank Governor Lesetja Kganyago said on Tuesday. "It set the path for fiscal ...

  • MOVES-David Fuhrman joins Marsh to lead Western U.S Reuters - 1 hour 30 minutes ago

    Insurance broker Marsh, a unit of Marsh & McLennan Cos Inc, said David Fuhrman is joining the firm to lead its operations in the western region of the United States, effective immediately. Previously, Fuhrman was Willis Tower Watson's national partner for the California region. Fuhrman will be based in Los Angeles and report to Rob Bentley, president of Marsh's U.S. and Canada division.

  • U.S. prosecutors consider more charges against ex-CEO Shkreli Reuters - 1 hour 41 minutes ago
    U.S. prosecutors consider more charges against ex-CEO Shkreli

    More charges related to Shkreli's involvement with biopharmaceutical company Retrophin Inc could be filed within a month, Assistant U.S. Attorney Winston Paes said at a hearing in federal court in Brooklyn, New York. Shkreli, 33, sparked outrage among patients, medical societies and U.S. lawmakers after another company he ran, Turing Pharmaceuticals, raised the price of the drug Daraprim by more than 5,000 percent to $750 a pill. Shkreli has pleaded not guilty, and his lawyer Benjamin Brafman told reporters after Tuesday's court hearing that he did not believe additional charges would change the case.

  • Coty sharply raises estimate of costs related to P&G deal Reuters - 1 hour 43 minutes ago

    Perfume maker Coty Inc sharply raised its estimate of costs related to its $12.5 billion acquisition of beauty product brands from Procter & Gamble Co , sending its shares down as much as 7 percent on Tuesday. Coty, the U.S. maker of Calvin Klein and Chloe perfumes, agreed last July to buy more than 40 brands from P&G, including Wella and Clairol hair-care products, as part of its strategy to reduce its dependence on its struggling fragrance business. In July, Coty had said it expected costs of about $500 million over three years.