The Week in Review for the week ending August 10, 2012
A variety of reports that came out throughout last week confirmed that the European economy continues to weaken, with deepening troughs in Germany, Italy and the United Kingdom.
China reported lower export levels, slowing inflation and sharply lower bank loan activity. Taiwan and South Korea also had steep declines in exports.
The United States stood in contrast, with growing exports.
Despite the rising tide of negative economic data, markets were buoyed by better-than-expected corporate earnings and rising expectations of renewed central bank stimulus efforts to promote growth in the United States, Asia and Europe.
Amid this environment the DJIA was up 0.9%, the S&P 500 was up 1.1%, the Russell 2000 was up 1.7%, the Global Dow Ex-US was up 2.2% and crude oil rose 1.6%.
Economic weakness in the eurozone appears to be spreading into Germany, driving the region’s largest and strongest economy into contraction. Germany’s industrial output fell 0.9% in June in adjusted terms, after a 1.7% gain in May. German exports decreased more than expected in June as demand from eurozone trading partners declined. Germany’s factory orders also shrank 1.7% in June, twice as much as had been expected.
The UK economy has fallen into a steep slump, according to a number of reports. Industrial production reached its lowest point in 20 years in June, falling 2.5% between May and June, as the industrial sector was hurt by weak domestic demand and slowing exports. UK house prices also fell in July. The United Kingdom posted its largest overall trade deficit in at least 15 years, as weak export demand is hampering efforts by the country to trade itself out of recession. The Bank of England cut its forecasts for growth and inflation, signaling that it might add economic stimulus in the near future.
Italy’s economic output shrank in the second quarter, marking an entire year of consecutive quarterly contraction. The country’s gross domestic product shrank 2.5% in the second quarter from a year earlier. Italy’s domestic economy has seen declining retail sales, record low consumer sentiment, and weak bank lending. Italy also endured a 1.4% drop in industrial output in June from May and a decline of 8.2% from June 2011.
Chinese economic reports painted a clearer picture of a slowing economy in China, with new yuan loans by Chinese financial institutions down more than 40% in July from June, exports rising just 1% in July from a year earlier, and inflation slowing to 1.8% in July from a year earlier. The data are particularly worrisome because of how heavily dependent many other countries have become on China as a customer for their goods.
Taiwan and South Korea reported sharply lower July exports, down 12% and 8.8%, respectively, from a year earlier.
The US economy, while not robust, appears to be in better shape than any other major nation’s, as data from elsewhere continue to show softening. The US trade deficit narrowed to its lowest level in two years in June, as exports reached a record high and imports eased largely because of declining oil prices. However, the trade gap with China grew because exports to China declined while imports continued to grow.
The US housing market showed signs of a pickup: Three of five banks surveyed this summer by the US Federal Reserve Board said demand increased for home-purchase loans during the past three months; home prices rose by 2.5% in June from a year ago; and 11.9% of mortgage loans were 30 days or longer past due or in foreclosure at the end of June, down from 12.9% a year earlier.
The size of this year’s US corn crop is forecast to drop by 17%, and prices will rise by up to 39%, according to the US Department of Agriculture. The widespread US drought is expected to have a similar impact on the country’s soybean crop. As a result, food prices are expected to rise, including those of meats and poultry that rely on corn and soybeans for feed. The USDA also predicts that grain exporters and other US businesses that use corn will cut back on their consumption.
Freddie Mac, one of two US government-sponsored home mortgage market facilitators, reported a $3 billion second-quarter profit, after a $2.1 billion loss a year earlier. Freddie Mac benefited from rising home prices, which reduced the amount of money it set aside to protect against future credit losses. It also paid a $1.8 billion dividend to the US Treasury Department, which bailed it out in 2008.
Hewlett-Packard said it plans to write down the value of its services segment by about $8 billion, acknowledging that it overpaid for its $13 billion acquisition of Electronic Data Systems in 2008.
German bank Commerzbank posted a much higher second-quarter profit than a year ago but warned that its second-half profit would decline because of the challenging economy and declining consumer activity.
Germany’s Deutsche Telekom reported sharply higher second-quarter net profit as recent staff reductions led to lower expenses. However, the firm warned of ongoing business challenges, including intense competition, onerous regulations, and difficult economic conditions, particularly in Greece.
Media conglomerate News Corp posted a $1.55 billion loss for its fiscal fourth quarter after a multibillion-dollar write-down of its unprofitable publishing businesses. The firm plans to separate its film and television divisions from its publishing arm.
The Week in Review for the week ending August 10, 2012
A variety of reports that came out throughout last week confirmed that the European economy continues to weaken, with deepening troughs in Germany, Italy and the United Kingdom.
China reported lower export levels, slowing inflation and sharply lower bank loan activity. Taiwan and South Korea also had steep declines in exports.
The United States stood in contrast, with growing exports.
Despite the rising tide of negative economic data, markets were buoyed by better-than-expected corporate earnings and rising expectations of renewed central bank stimulus efforts to promote growth in the United States, Asia and Europe.
Amid this environment the DJIA was up 0.9%, the S&P 500 was up 1.1%, the Russell 2000 was up 1.7%, the Global Dow Ex-US was up 2.2% and crude oil rose 1.6%.
Economic weakness in the eurozone appears to be spreading into Germany, driving the region’s largest and strongest economy into contraction. Germany’s industrial output fell 0.9% in June in adjusted terms, after a 1.7% gain in May. German exports decreased more than expected in June as demand from eurozone trading partners declined. Germany’s factory orders also shrank 1.7% in June, twice as much as had been expected.
The UK economy has fallen into a steep slump, according to a number of reports. Industrial production reached its lowest point in 20 years in June, falling 2.5% between May and June, as the industrial sector was hurt by weak domestic demand and slowing exports. UK house prices also fell in July. The United Kingdom posted its largest overall trade deficit in at least 15 years, as weak export demand is hampering efforts by the country to trade itself out of recession. The Bank of England cut its forecasts for growth and inflation, signaling that it might add economic stimulus in the near future.
Italy’s economic output shrank in the second quarter, marking an entire year of consecutive quarterly contraction. The country’s gross domestic product shrank 2.5% in the second quarter from a year earlier. Italy’s domestic economy has seen declining retail sales, record low consumer sentiment, and weak bank lending. Italy also endured a 1.4% drop in industrial output in June from May and a decline of 8.2% from June 2011.
Chinese economic reports painted a clearer picture of a slowing economy in China, with new yuan loans by Chinese financial institutions down more than 40% in July from June, exports rising just 1% in July from a year earlier, and inflation slowing to 1.8% in July from a year earlier. The data are particularly worrisome because of how heavily dependent many other countries have become on China as a customer for their goods.
Taiwan and South Korea reported sharply lower July exports, down 12% and 8.8%, respectively, from a year earlier.
The US economy, while not robust, appears to be in better shape than any other major nation’s, as data from elsewhere continue to show softening. The US trade deficit narrowed to its lowest level in two years in June, as exports reached a record high and imports eased largely because of declining oil prices. However, the trade gap with China grew because exports to China declined while imports continued to grow.
The US housing market showed signs of a pickup: Three of five banks surveyed this summer by the US Federal Reserve Board said demand increased for home-purchase loans during the past three months; home prices rose by 2.5% in June from a year ago; and 11.9% of mortgage loans were 30 days or longer past due or in foreclosure at the end of June, down from 12.9% a year earlier.
The size of this year’s US corn crop is forecast to drop by 17%, and prices will rise by up to 39%, according to the US Department of Agriculture. The widespread US drought is expected to have a similar impact on the country’s soybean crop. As a result, food prices are expected to rise, including those of meats and poultry that rely on corn and soybeans for feed. The USDA also predicts that grain exporters and other US businesses that use corn will cut back on their consumption.
Freddie Mac, one of two US government-sponsored home mortgage market facilitators, reported a $3 billion second-quarter profit, after a $2.1 billion loss a year earlier. Freddie Mac benefited from rising home prices, which reduced the amount of money it set aside to protect against future credit losses. It also paid a $1.8 billion dividend to the US Treasury Department, which bailed it out in 2008.
Hewlett-Packard said it plans to write down the value of its services segment by about $8 billion, acknowledging that it overpaid for its $13 billion acquisition of Electronic Data Systems in 2008.
German bank Commerzbank posted a much higher second-quarter profit than a year ago but warned that its second-half profit would decline because of the challenging economy and declining consumer activity.
Germany’s Deutsche Telekom reported sharply higher second-quarter net profit as recent staff reductions led to lower expenses. However, the firm warned of ongoing business challenges, including intense competition, onerous regulations, and difficult economic conditions, particularly in Greece.
Media conglomerate News Corp posted a $1.55 billion loss for its fiscal fourth quarter after a multibillion-dollar write-down of its unprofitable publishing businesses. The firm plans to separate its film and television divisions from its publishing arm.
The Week in Review for the week ending August 10, 2012
A variety of reports that came out throughout last week confirmed that the European economy continues to weaken, with deepening troughs in Germany, Italy and the United Kingdom.
China reported lower export levels, slowing inflation and sharply lower bank loan activity. Taiwan and South Korea also had steep declines in exports.
The United States stood in contrast, with growing exports.
Despite the rising tide of negative economic data, markets were buoyed by better-than-expected corporate earnings and rising expectations of renewed central bank stimulus efforts to promote growth in the United States, Asia and Europe.
Amid this environment the DJIA was up 0.9%, the S&P 500 was up 1.1%, the Russell 2000 was up 1.7%, the Global Dow Ex-US was up 2.2% and crude oil rose 1.6%.
Economic weakness in the eurozone appears to be spreading into Germany, driving the region’s largest and strongest economy into contraction. Germany’s industrial output fell 0.9% in June in adjusted terms, after a 1.7% gain in May. German exports decreased more than expected in June as demand from eurozone trading partners declined. Germany’s factory orders also shrank 1.7% in June, twice as much as had been expected.
The UK economy has fallen into a steep slump, according to a number of reports. Industrial production reached its lowest point in 20 years in June, falling 2.5% between May and June, as the industrial sector was hurt by weak domestic demand and slowing exports. UK house prices also fell in July. The United Kingdom posted its largest overall trade deficit in at least 15 years, as weak export demand is hampering efforts by the country to trade itself out of recession. The Bank of England cut its forecasts for growth and inflation, signaling that it might add economic stimulus in the near future.
Italy’s economic output shrank in the second quarter, marking an entire year of consecutive quarterly contraction. The country’s gross domestic product shrank 2.5% in the second quarter from a year earlier. Italy’s domestic economy has seen declining retail sales, record low consumer sentiment, and weak bank lending. Italy also endured a 1.4% drop in industrial output in June from May and a decline of 8.2% from June 2011.
Chinese economic reports painted a clearer picture of a slowing economy in China, with new yuan loans by Chinese financial institutions down more than 40% in July from June, exports rising just 1% in July from a year earlier, and inflation slowing to 1.8% in July from a year earlier. The data are particularly worrisome because of how heavily dependent many other countries have become on China as a customer for their goods.
Taiwan and South Korea reported sharply lower July exports, down 12% and 8.8%, respectively, from a year earlier.
The US economy, while not robust, appears to be in better shape than any other major nation’s, as data from elsewhere continue to show softening. The US trade deficit narrowed to its lowest level in two years in June, as exports reached a record high and imports eased largely because of declining oil prices. However, the trade gap with China grew because exports to China declined while imports continued to grow.
The US housing market showed signs of a pickup: Three of five banks surveyed this summer by the US Federal Reserve Board said demand increased for home-purchase loans during the past three months; home prices rose by 2.5% in June from a year ago; and 11.9% of mortgage loans were 30 days or longer past due or in foreclosure at the end of June, down from 12.9% a year earlier.
The size of this year’s US corn crop is forecast to drop by 17%, and prices will rise by up to 39%, according to the US Department of Agriculture. The widespread US drought is expected to have a similar impact on the country’s soybean crop. As a result, food prices are expected to rise, including those of meats and poultry that rely on corn and soybeans for feed. The USDA also predicts that grain exporters and other US businesses that use corn will cut back on their consumption.
Freddie Mac, one of two US government-sponsored home mortgage market facilitators, reported a $3 billion second-quarter profit, after a $2.1 billion loss a year earlier. Freddie Mac benefited from rising home prices, which reduced the amount of money it set aside to protect against future credit losses. It also paid a $1.8 billion dividend to the US Treasury Department, which bailed it out in 2008.
Hewlett-Packard said it plans to write down the value of its services segment by about $8 billion, acknowledging that it overpaid for its $13 billion acquisition of Electronic Data Systems in 2008.
German bank Commerzbank posted a much higher second-quarter profit than a year ago but warned that its second-half profit would decline because of the challenging economy and declining consumer activity.
Germany’s Deutsche Telekom reported sharply higher second-quarter net profit as recent staff reductions led to lower expenses. However, the firm warned of ongoing business challenges, including intense competition, onerous regulations, and difficult economic conditions, particularly in Greece.
Media conglomerate News Corp posted a $1.55 billion loss for its fiscal fourth quarter after a multibillion-dollar write-down of its unprofitable publishing businesses. The firm plans to separate its film and television divisions from its publishing arm.
The Week in Review for the week ending August 10, 2012
A variety of reports that came out throughout last week confirmed that the European economy continues to weaken, with deepening troughs in Germany, Italy and the United Kingdom.
China reported lower export levels, slowing inflation and sharply lower bank loan activity. Taiwan and South Korea also had steep declines in exports.
The United States stood in contrast, with growing exports.
Despite the rising tide of negative economic data, markets were buoyed by better-than-expected corporate earnings and rising expectations of renewed central bank stimulus efforts to promote growth in the United States, Asia and Europe.
Amid this environment the DJIA was up 0.9%, the S&P 500 was up 1.1%, the Russell 2000 was up 1.7%, the Global Dow Ex-US was up 2.2% and crude oil rose 1.6%.
Economic weakness in the eurozone appears to be spreading into Germany, driving the region’s largest and strongest economy into contraction. Germany’s industrial output fell 0.9% in June in adjusted terms, after a 1.7% gain in May. German exports decreased more than expected in June as demand from eurozone trading partners declined. Germany’s factory orders also shrank 1.7% in June, twice as much as had been expected.
The UK economy has fallen into a steep slump, according to a number of reports. Industrial production reached its lowest point in 20 years in June, falling 2.5% between May and June, as the industrial sector was hurt by weak domestic demand and slowing exports. UK house prices also fell in July. The United Kingdom posted its largest overall trade deficit in at least 15 years, as weak export demand is hampering efforts by the country to trade itself out of recession. The Bank of England cut its forecasts for growth and inflation, signaling that it might add economic stimulus in the near future.
Italy’s economic output shrank in the second quarter, marking an entire year of consecutive quarterly contraction. The country’s gross domestic product shrank 2.5% in the second quarter from a year earlier. Italy’s domestic economy has seen declining retail sales, record low consumer sentiment, and weak bank lending. Italy also endured a 1.4% drop in industrial output in June from May and a decline of 8.2% from June 2011.
Chinese economic reports painted a clearer picture of a slowing economy in China, with new yuan loans by Chinese financial institutions down more than 40% in July from June, exports rising just 1% in July from a year earlier, and inflation slowing to 1.8% in July from a year earlier. The data are particularly worrisome because of how heavily dependent many other countries have become on China as a customer for their goods.
Taiwan and South Korea reported sharply lower July exports, down 12% and 8.8%, respectively, from a year earlier.
The US economy, while not robust, appears to be in better shape than any other major nation’s, as data from elsewhere continue to show softening. The US trade deficit narrowed to its lowest level in two years in June, as exports reached a record high and imports eased largely because of declining oil prices. However, the trade gap with China grew because exports to China declined while imports continued to grow.
The US housing market showed signs of a pickup: Three of five banks surveyed this summer by the US Federal Reserve Board said demand increased for home-purchase loans during the past three months; home prices rose by 2.5% in June from a year ago; and 11.9% of mortgage loans were 30 days or longer past due or in foreclosure at the end of June, down from 12.9% a year earlier.
The size of this year’s US corn crop is forecast to drop by 17%, and prices will rise by up to 39%, according to the US Department of Agriculture. The widespread US drought is expected to have a similar impact on the country’s soybean crop. As a result, food prices are expected to rise, including those of meats and poultry that rely on corn and soybeans for feed. The USDA also predicts that grain exporters and other US businesses that use corn will cut back on their consumption.
Freddie Mac, one of two US government-sponsored home mortgage market facilitators, reported a $3 billion second-quarter profit, after a $2.1 billion loss a year earlier. Freddie Mac benefited from rising home prices, which reduced the amount of money it set aside to protect against future credit losses. It also paid a $1.8 billion dividend to the US Treasury Department, which bailed it out in 2008.
Hewlett-Packard said it plans to write down the value of its services segment by about $8 billion, acknowledging that it overpaid for its $13 billion acquisition of Electronic Data Systems in 2008.
German bank Commerzbank posted a much higher second-quarter profit than a year ago but warned that its second-half profit would decline because of the challenging economy and declining consumer activity.
Germany’s Deutsche Telekom reported sharply higher second-quarter net profit as recent staff reductions led to lower expenses. However, the firm warned of ongoing business challenges, including intense competition, onerous regulations, and difficult economic conditions, particularly in Greece.
Media conglomerate News Corp posted a $1.55 billion loss for its fiscal fourth quarter after a multibillion-dollar write-down of its unprofitable publishing businesses. The firm plans to separate its film and television divisions from its publishing arm.
The Week in Review for the week ending August 10, 2012
A variety of reports that came out throughout last week confirmed that the European economy continues to weaken, with deepening troughs in Germany, Italy and the United Kingdom.
China reported lower export levels, slowing inflation and sharply lower bank loan activity. Taiwan and South Korea also had steep declines in exports.
The United States stood in contrast, with growing exports.
Despite the rising tide of negative economic data, markets were buoyed by better-than-expected corporate earnings and rising expectations of renewed central bank stimulus efforts to promote growth in the United States, Asia and Europe.
Amid this environment the DJIA was up 0.9%, the S&P 500 was up 1.1%, the Russell 2000 was up 1.7%, the Global Dow Ex-US was up 2.2% and crude oil rose 1.6%.
Economic weakness in the eurozone appears to be spreading into Germany, driving the region’s largest and strongest economy into contraction. Germany’s industrial output fell 0.9% in June in adjusted terms, after a 1.7% gain in May. German exports decreased more than expected in June as demand from eurozone trading partners declined. Germany’s factory orders also shrank 1.7% in June, twice as much as had been expected.
The UK economy has fallen into a steep slump, according to a number of reports. Industrial production reached its lowest point in 20 years in June, falling 2.5% between May and June, as the industrial sector was hurt by weak domestic demand and slowing exports. UK house prices also fell in July. The United Kingdom posted its largest overall trade deficit in at least 15 years, as weak export demand is hampering efforts by the country to trade itself out of recession. The Bank of England cut its forecasts for growth and inflation, signaling that it might add economic stimulus in the near future.
Italy’s economic output shrank in the second quarter, marking an entire year of consecutive quarterly contraction. The country’s gross domestic product shrank 2.5% in the second quarter from a year earlier. Italy’s domestic economy has seen declining retail sales, record low consumer sentiment, and weak bank lending. Italy also endured a 1.4% drop in industrial output in June from May and a decline of 8.2% from June 2011.
Chinese economic reports painted a clearer picture of a slowing economy in China, with new yuan loans by Chinese financial institutions down more than 40% in July from June, exports rising just 1% in July from a year earlier, and inflation slowing to 1.8% in July from a year earlier. The data are particularly worrisome because of how heavily dependent many other countries have become on China as a customer for their goods.
Taiwan and South Korea reported sharply lower July exports, down 12% and 8.8%, respectively, from a year earlier.
The US economy, while not robust, appears to be in better shape than any other major nation’s, as data from elsewhere continue to show softening. The US trade deficit narrowed to its lowest level in two years in June, as exports reached a record high and imports eased largely because of declining oil prices. However, the trade gap with China grew because exports to China declined while imports continued to grow.
The US housing market showed signs of a pickup: Three of five banks surveyed this summer by the US Federal Reserve Board said demand increased for home-purchase loans during the past three months; home prices rose by 2.5% in June from a year ago; and 11.9% of mortgage loans were 30 days or longer past due or in foreclosure at the end of June, down from 12.9% a year earlier.
The size of this year’s US corn crop is forecast to drop by 17%, and prices will rise by up to 39%, according to the US Department of Agriculture. The widespread US drought is expected to have a similar impact on the country’s soybean crop. As a result, food prices are expected to rise, including those of meats and poultry that rely on corn and soybeans for feed. The USDA also predicts that grain exporters and other US businesses that use corn will cut back on their consumption.
Freddie Mac, one of two US government-sponsored home mortgage market facilitators, reported a $3 billion second-quarter profit, after a $2.1 billion loss a year earlier. Freddie Mac benefited from rising home prices, which reduced the amount of money it set aside to protect against future credit losses. It also paid a $1.8 billion dividend to the US Treasury Department, which bailed it out in 2008.
Hewlett-Packard said it plans to write down the value of its services segment by about $8 billion, acknowledging that it overpaid for its $13 billion acquisition of Electronic Data Systems in 2008.
German bank Commerzbank posted a much higher second-quarter profit than a year ago but warned that its second-half profit would decline because of the challenging economy and declining consumer activity.
Germany’s Deutsche Telekom reported sharply higher second-quarter net profit as recent staff reductions led to lower expenses. However, the firm warned of ongoing business challenges, including intense competition, onerous regulations, and difficult economic conditions, particularly in Greece.
Media conglomerate News Corp posted a $1.55 billion loss for its fiscal fourth quarter after a multibillion-dollar write-down of its unprofitable publishing businesses. The firm plans to separate its film and television divisions from its publishing arm.
The Week in Review for the week ending August 10, 2012
A variety of reports that came out throughout last week confirmed that the European economy continues to weaken, with deepening troughs in Germany, Italy and the United Kingdom.
China reported lower export levels, slowing inflation and sharply lower bank loan activity. Taiwan and South Korea also had steep declines in exports.
The United States stood in contrast, with growing exports.
Despite the rising tide of negative economic data, markets were buoyed by better-than-expected corporate earnings and rising expectations of renewed central bank stimulus efforts to promote growth in the United States, Asia and Europe.
Amid this environment the DJIA was up 0.9%, the S&P 500 was up 1.1%, the Russell 2000 was up 1.7%, the Global Dow Ex-US was up 2.2% and crude oil rose 1.6%.
Economic weakness in the eurozone appears to be spreading into Germany, driving the region’s largest and strongest economy into contraction. Germany’s industrial output fell 0.9% in June in adjusted terms, after a 1.7% gain in May. German exports decreased more than expected in June as demand from eurozone trading partners declined. Germany’s factory orders also shrank 1.7% in June, twice as much as had been expected.
The UK economy has fallen into a steep slump, according to a number of reports. Industrial production reached its lowest point in 20 years in June, falling 2.5% between May and June, as the industrial sector was hurt by weak domestic demand and slowing exports. UK house prices also fell in July. The United Kingdom posted its largest overall trade deficit in at least 15 years, as weak export demand is hampering efforts by the country to trade itself out of recession. The Bank of England cut its forecasts for growth and inflation, signaling that it might add economic stimulus in the near future.
Italy’s economic output shrank in the second quarter, marking an entire year of consecutive quarterly contraction. The country’s gross domestic product shrank 2.5% in the second quarter from a year earlier. Italy’s domestic economy has seen declining retail sales, record low consumer sentiment, and weak bank lending. Italy also endured a 1.4% drop in industrial output in June from May and a decline of 8.2% from June 2011.
Chinese economic reports painted a clearer picture of a slowing economy in China, with new yuan loans by Chinese financial institutions down more than 40% in July from June, exports rising just 1% in July from a year earlier, and inflation slowing to 1.8% in July from a year earlier. The data are particularly worrisome because of how heavily dependent many other countries have become on China as a customer for their goods.
Taiwan and South Korea reported sharply lower July exports, down 12% and 8.8%, respectively, from a year earlier.
The US economy, while not robust, appears to be in better shape than any other major nation’s, as data from elsewhere continue to show softening. The US trade deficit narrowed to its lowest level in two years in June, as exports reached a record high and imports eased largely because of declining oil prices. However, the trade gap with China grew because exports to China declined while imports continued to grow.
The US housing market showed signs of a pickup: Three of five banks surveyed this summer by the US Federal Reserve Board said demand increased for home-purchase loans during the past three months; home prices rose by 2.5% in June from a year ago; and 11.9% of mortgage loans were 30 days or longer past due or in foreclosure at the end of June, down from 12.9% a year earlier.
The size of this year’s US corn crop is forecast to drop by 17%, and prices will rise by up to 39%, according to the US Department of Agriculture. The widespread US drought is expected to have a similar impact on the country’s soybean crop. As a result, food prices are expected to rise, including those of meats and poultry that rely on corn and soybeans for feed. The USDA also predicts that grain exporters and other US businesses that use corn will cut back on their consumption.
Freddie Mac, one of two US government-sponsored home mortgage market facilitators, reported a $3 billion second-quarter profit, after a $2.1 billion loss a year earlier. Freddie Mac benefited from rising home prices, which reduced the amount of money it set aside to protect against future credit losses. It also paid a $1.8 billion dividend to the US Treasury Department, which bailed it out in 2008.
Hewlett-Packard said it plans to write down the value of its services segment by about $8 billion, acknowledging that it overpaid for its $13 billion acquisition of Electronic Data Systems in 2008.
German bank Commerzbank posted a much higher second-quarter profit than a year ago but warned that its second-half profit would decline because of the challenging economy and declining consumer activity.
Germany’s Deutsche Telekom reported sharply higher second-quarter net profit as recent staff reductions led to lower expenses. However, the firm warned of ongoing business challenges, including intense competition, onerous regulations, and difficult economic conditions, particularly in Greece.
Media conglomerate News Corp posted a $1.55 billion loss for its fiscal fourth quarter after a multibillion-dollar write-down of its unprofitable publishing businesses. The firm plans to separate its film and television divisions from its publishing arm.