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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news