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


While you were sleeping: Time Warner shares plunge

While you were sleeping: Time Warner shares plunge

Aug 7 (BusinessDesk) – Wall Street was mixed as better-than-expected US trade data offset rising concern Russia might invade Ukraine on a "humanitarian" pretext.

Tension in Ukraine is building. Russia, which annexed Ukraine's Crimea region in March, has amassed around 20,000 combat-ready troops on Ukraine’s eastern border, according to NATO.

"We're not going to guess what's on Russia's mind, but we can see what Russia is doing on the ground – and that is of great concern," NATO spokeswoman Oana Lungescu said in an emailed statement, Reuters reported.

Meanwhile, investors received promising signs about the pace of recovery in the US. A report showing the US trade deficit narrowed more than expected in June underpinned optimism that the world's largest economy continues to gather steam.

"The improvement in June could mean a modest upward revision to the second-quarter GDP estimate," Millan Mulraine, deputy chief economist at TD Securities in New York, told Reuters. "It also implies a fairly strong hand-off to third-quarter GDP."

Wall Street was little changed, following Tuesday's drop. In afternoon trading in New York, the Dow Jones Industrial Average eked out a 0.01 percent gain, as did the Standard & Poor's 500 Index, while the Nasdaq Composite Index rose 0.18 percent.

In the Dow, gains in Procter & Gamble and General Electric, both up 1.7 percent, offset declines in shares of Boeing and AT&T, down 2.6 percent and 1.7 percent respectively.

Shares of Time Warner plunged, last down 12.3 percent, after Rupert Murdoch's Twenty-First Century Fox withdrew its unsolicited takeover offer for the company. Shares of Fox climbed 3.2 percent.

"Time Warner management and its board refused to engage with us to explore an offer which was highly compelling," CEO Rupert Murdoch said in a statement. "Additionally, the reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders."

Time Warner's latest quarterly results, which exceeded expectations, failed to assuage its shareholders. Fox is set to release its latest results after the closing bell.

In Europe, the Stoxx 600 Index ended the session with a 0.9 percent slide from the previous close. The UK’s FTSE 100 Index fell 0.7 percent, as did Germany’s DAX. France’s CAC 40 fell 0.6 percent.

Here, the latest data highlighted ongoing concern about the strength of the recovery in euro-zone economies.

A report showed that German factory orders unexpectedly fell in June, sliding 3.2 percent, while in Italy a report showed that the country's gross domestic product unexpectedly shrank in the second quarter, contracting 0.2 percent.

That's the second contraction in as many quarters for Italy, indicating the country has fallen back into recession amid signs the government is struggling to enact the structural changes needed to bolster its longer-term prospects.

Those reports arrived just in time before European Central Bank policy makers gather on Thursday.

"Evidence is mounting that risks to the ECB's economic outlook are to the downside," Joerg Kraemer, chief economist at Commerzbank in Frankfurt, told Bloomberg News.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news