Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Citigroup drops

While you were sleeping: Citigroup drops

March 28 (BusinessDesk) – Wall Street fell along with shares of Citigroup after the bank failed a Federal Reserve stress test of its capital plan, overshadowing an upward revision of US economic growth in the fourth quarter of 2013.

Shares of Citigroup fell, down 5.5 percent, after the bank’s capital plan failed the latest Fed stress tests of the nation’s top 25 banks. A source close to the matter told Reuters that Citi officials had not expected the rejection.

“Needless to say, we are deeply disappointed by the Fed’s decision regarding the additional capital actions we requested,” Michael Corbat, Citi’s chief executive officer, said in a statement. “The additional capital actions represented a modest level of capital return and still allowed Citi to exceed the required threshold on a quantitative basis.

“We will continue to work closely with the Fed to better understand their concerns so that we can bring our capital planning process in line with their expectations and meet their standards on a qualitative basis as well. We have not yet made a decision as to when we will resubmit our plan,” Corbat said.

Four other banks failed the test as well.

“Things are improving and the banking industry has turned a corner; it just might not be as far along as the market would like,” Joseph Vitale, a partner at law firm Schulte Roth & Zabel who represents financial firms, told Bloomberg News. “You’ve still got some time to go before the regulators see things as business-as-usual again.”

In afternoon trading in New York, the Dow Jones Industrial Average slid 0.11 percent, the Standard & Poor’s 500 Index fell 0.26 percent, while the Nasdaq Composite Index declined 0.54 percent.

Shares of IBM and Cisco fell, down 1.6 percent and 1.4 percent respectively, and led the Dow lower.

Meanwhile the latest economic reports helped brighten the outlook for the US. Gross domestic product expanded at a 2.6 percent annualised rate from October through December, which was better than the 2.4 percent gain reported last month, according to Commerce Department data. To be sure, the revised number fell short of expectations.

Separately, initial claims for state unemployment benefits unexpectedly fell, declining 10,000 to a seasonally adjusted 311,000 last week, according to Labor Department data.

“The economy looks in a better place than it did just 24 hours ago," Chris Rupkey, an economist at Bank of Tokyo-Mitsubishi UFJ in New York, told Reuters.

The National Association of Realtors’ pending home sales index fell 0.8 percent in February to its lowest level since October 2011. But the outlook has improved.

“Contract signings for the past three months have been little changed, implying the market appears to be stabilising,” Lawrence Yun, NAR chief economist, said in a statement. “Moreover, buyer traffic information from our monthly Realtor survey shows a modest turnaround, and some weather delayed transactions should close in the spring.”

In Europe, the Stoxx 600 Index eked out a 0.1 percent gain from the previous close. Germany’s DAX also closed higher, finishing the day at 9,451.21. France’s CAC 40 fell 0.1 percent, the UK’s FTSE 100 slid 0.3 percent.

West Texas Intermediate crude climbed as much as 1.4 percent amid concern about a decline of supplies at Cushing, Oklahoma.

“The continuing depletion of supplies at Cushing is on everyone’s mind,” John Kilduff, a partner at Again Capital, a New York-based hedge fund that focuses on energy, told Bloomberg News. “We’re seeing the WTI-Brent spread come in as a result. There’s speculation that Cushing supplies could get below operational rates.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news