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

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news