Euro Economy » 2012 » June

Fed seen keeping options open on pace of bond buying

By Alister Bull WASHINGTON (Reuters) - Federal Reserve policymakers will likely announce on Wednesday that they will keep buying bonds at a monthly pace of $85 billion, while keeping their options open to scale back the program later this year if the U.S. labor market continues to improve. Economic data since the 19 officials met in May has been mixed. Employment growth was steady and consumers kept spending despite the drag of tax hikes and government spending cuts. But inflation slowed further beneath the Fed's 2 percent target. ...

Shares edge up, dollar steady as markets await Fed

By Richard Hubbard LONDON (Reuters) - European shares edged higher and major currencies and commodities were little changed on Wednesday as investors awaited clarity on the U.S. Federal Reserve's next policy step. Recent mixed data on the health of the U.S. economic recovery is expected to encourage the Fed to leave its ultra-loose policy unchanged, but markets are on alert for any hints on when or how quickly it could wind back its bond buying. "Our view is they are going to stick with $85 billion a month (of bond buying) until the end of the year... ...

Leasing firm CIT orders 30 Boeing 737 MAX planes

PARIS (Reuters) - Boeing has won an order for 30 of its 737 MAX 8 aircraft worth $3 billion at list prices from leasing firm CIT Group , the two companies said at the Paris Airshow on Wednesday. The deal comprises 10 new aircraft and the conversion of 20 existing 737 orders, with deliveries due in 2019 and 2020, CIT said. It came two days after Boeing announced 737 MAX orders from SkyMark Airlines and TUI Travel . CIT is also "seriously looking" at the 787-10 aircraft that Boeing launched on Tuesday, said Jeff Knittel, president of transportation finance at CIT. ...

Softbank closer to acquiring Sprint after Dish abandons bid for now

By Sophie Knight and Sinead Carew TOKYO/NEW YORK (Reuters) - Japan's SoftBank Corp cleared a major hurdle in its attempt to buy U.S. wireless provider Sprint Nextel Corp, as rival bidder Dish Network Corp declined to make a new offer after SoftBank sweetened its own bid last week. SoftBank Chief Executive Masayoshi Son is now a step closer to sealing the largest overseas acquisition by a Japanese company in history, after winning support from a key shareholder by raising SoftBank's offer to $21.6 billion from $20.1 billion last week. ...

Asia business sentiment rises in second quarter, global growth risk still dominates

By Miyoung Kim SEOUL (Reuters) - Asia's top companies have become more optimistic about their business outlook with the retail and shipping industries rebounding sharply in the second quarter of 2013, the latest Thomson Reuters/INSEAD Asia Business Sentiment Survey shows. The Thomson Reuters/INSEAD Asia Business Sentiment Index climbed six points to 71 in June, its highest level in five quarters and the third consecutive quarterly rise. A reading above 50 indicates a generally positive outlook. ...

Revision of Cypriot bailout terms not likely: euro zone officials

BRUSSELS (Reuters) - The euro zone does not intend to change the terms of Cyprus's bailout as requested by Cypriot President Nicos Anastasiades in a letter sent to euro zone leaders and its lenders, three senior euro zone officials said on Wednesday. Cyprus secured 10 billion euros in emergency loans from the euro zone's bailout fund in April to avoid bankruptcy. The deal involved the closure of the island's second biggest bank, Laiki, and a fundamental restructuring of Bank of Cyprus. ...

Smithfield CEO could make about $46.6 million from Shuanghui deal

(Reuters) - Smithfield Foods Inc Chief Executive Larry Pope could receive nearly $46.6 million in merger-related payments as part of a planned takeover by China's Shuanghui International, a securities filing showed. As per a filing made with the U.S. Securities and Exchange Commission (SEC) late on Tuesday, Pope would be eligible to receive about $28 million in cash and $18.6 million in equity. Robert Manly, Smithfield's chief financial officer, would also be eligible to receive about $22.8 million in potential merger-related payments, the filing showed. ...

EADS sticks to defense business, mulls options: CEO

FRANKFURT (Reuters) - EADS has no plans to give up its defense business but is open to seeking alternatives for parts of it, Chief Executive Tom Enders told a German newspaper. "We will certainly examine very closely which business is worth continuing, with regard to profitability and market perspective - and which business may possibly have a better future as part of a joint venture or under a new owner," Enders told daily Die Welt in an interview published on Wednesday. "What's certain is that in times of shrinking budgets, consolidation in the defense industry is necessary. ...

Mexican oil producer Pemex evacuates headquarters after bomb threat

MEXICO CITY (Reuters) - Mexico's state oil producer, Pemex, said on Tuesday it had evacuated its Mexico City headquarters, the site of a deadly explosion in January, after a bomb threat. "In the face of the threat, we're applying security measures at the Pemex tower in Mexico City," Pemex said in a tweet around 8:48 p.m. (0148 GMT Wednesday). A company spokesman confirmed there was a bomb threat and said there were very few people in the building at the time of the evacuation. Another Pemex spokeswoman could not immediately provide details on how the threat arrived. ...

Empire State Building gets 'left-field' $2 billion offer to sell

NEW YORK (Reuters) - A New York City real estate company offered to buy the Empire State Building for $2 billion, a written offer showed, significantly below the skyscraper's appraisal price and about three weeks after investors in the iconic building approved a plan to take the tower public in a real-estate investment trust. ...