Stock futures rise after China data, earnings eyed

NEW YORK (Reuters) - Stock index futures rose on Tuesday as investors looked to corporate profits as earnings season picks up and Chinese data fueled the belief the government may move to stimulate growth. China's economy grew slightly more than expected but at the weakest pace in 2-1/2 years, suggesting the government may act to increase growth in the near future. Corporate earnings are due from Citigroup Inc , Forest Laboratories Inc , Linear Technology Corp , M&T Bank Corp , and Wells Fargo & Co . ...

S&P downgrade may spark tougher EU ratings curbs

LONDON (Reuters) - Standard & Poor's credit rating downgrades of nine euro zone countries will fuel attempts by European Union lawmakers to slap stricter curbs on sovereign ratings. The bloc's financial services chief Michel Barnier proposed in November a third set of rules for rating agencies in as many years. But faced with opposition from some of his fellow commissioners, Barnier dropped one proposed element: publication blackouts on ratings downgrades. Now, with many lawmakers angry about the timing of Friday's downgrades, that proposal could be revisited. ...

WestJet may launch regional airline

TORONTO (Reuters) - WestJet Airlines Ltd may launch a regional, short-haul airline as early as 2013, using a fleet of about 40 turboprop aircraft, Canada's No. 2 airline said on Monday. The company will meet with staff through January to gather more input on the plan, which it said would allow it to expand into smaller markets, create new connections between existing destinations and boost the frequency of its flights. A WestJet spokeswoman said staff would be asked to vote on the proposal. ...

European shares sink after S&P cuts

LONDON (Reuters) - European shares fell on Monday and the euro was stuck at 17-month lows against the dollar while German government bonds eased after early gains on fears that S&P's mass euro zone sovereign rating cuts and a Greek debt standoff would worsen the region's debt crisis. Rating agency Standard & Poor's downgraded nine of the euro zone's 17 countries on Friday, with France and Austria losing their top-notch status, and said it would decide shortly whether to cut the euro zone's bailout fund from triple-A. ...

It's earnings versus Europe for stocks

NEW YORK (Reuters) - Stock investors will return to a tug of war between signs of domestic strength and overseas concerns next week as a batch of critical earnings reports look to add credence to the idea the economy is improving, while credit rating downgrades in Europe will keep that region's difficulties in view. Bank stocks will probably once again be a primary focus, as not only will European issues call the group's profit outlook into question, but many key names report results. ...

Analysts: S&P downgrades could have been worse

The decision by Standard & Poor's to strip France of its prized AAA credit rating and downgrade eight other European countries slammed a continent struggling with a debt crisis and an economic slowdown.

S.Africa's rand may test 8.00 against dollar

JOHANNESBURG (Reuters) - South Africa's firmed slightly against the dollar on Friday and looked set to test the psychologically important 8.00 level on the back of improved risk sentiment. The rand hit 5-week highs of 8.01 against the dollar on Thursday, helped by better-than-expected manufacturing production data, which bodes well for broader economic growth. By 0640 GMT, it was trading at 8.0326, a touch firmer than Thursday's New York close of 8.05. The rand last attempted to break below the 8.00 level in December, after breaching it in mid-November. ...

South Sudan offers crude oil despite export woes

SINGAPORE (Reuters) - South Sudan is offering more than 6 million barrels of crude oil on the spot market even though it cannot guarantee vessels will be able to load the cargoes at the Sudanese port, traders and shipbrokers said on Thursday. South Sudan has issued a tender to sell 4.7 million barrels of Dar Blend and 1.6 million barrels of Nile Blend crude for loading in February despite concerns its shipments were being blocked by Sudan at the Bashayer oil export terminal. ...

Samsung may consider alliance with Olympus: source

SEOUL/TOKYO (Reuters) - South Korea's Samsung Electronics is open to forging an alliance with Japan's troubled Olympus Corp, potentially joining other electronics firms in circling one of the world's biggest names in medical equipment, sources said. Samsung's major Japanese rivals, Sony and Panasonic, have already shown interest in Olympus, now in need of capital after being swamped by a $1.7 billion accounting scandal over the past three months, sources in Tokyo have told Reuters. ...

Wall Street steady near 5-month high

NEW YORK (Reuters) - Stocks held firm near recent five-month highs on Wednesday as investors awaited key bond market tests for Europe in the next two days that could determine the direction of the euro zone crisis. Equities have been performing better in the face of turmoil from Europe's sovereign debt problems. This is a major change from four months ago and comes as investors have taken improving U.S. economic data to heart and an optimistic view about corporate earnings. ...

Youths go on rampage in Nigeria's north, killing 1

Hundreds of Nigerian soldiers descended on a city in the country's north Wednesday where a state governor had to be evacuated by helicopter after protesting youths there went on a deadly rampage, attacking his residence and setting an election commission office on fire.

Deutsche Boerse's NYSE deal seen heading for the rocks

FRANKFURT (Reuters) - Deutsche Boerse AG's last-ditch lobbying efforts in support of its proposed takeover of NYSE Euronext look set to fail, leaving the deal heading for the rocks with European antitrust regulators expected to block the deal Deutsche Boerse's Reto Francioni and NYSE Euronext Chief Executive Duncan Niederauer hope to salvage the deal by pressing the case for the merger with commissioners ahead of a February deadline in Brussels. "Both companies will use the remaining time to emphasize the merits of the merger," Deutsche Boerse said in a statement on Wednesday. ...

Hostess returns to bankruptcy over pensions

(Reuters) - Twinkies and Wonder Bread maker Hostess Brands Inc filed for bankruptcy protection for the second time in less than three years, after failing to reach an agreement with workers on pension and health benefits. Hostess' declining financial performance, crippling legacy costs associated with its pension plans and massive debt levels led the company to Chapter 11 bankruptcy, court papers showed on Wednesday. The company, which has about $860 million in debt, said it does not expect disruptions in the manufacturing and delivery of its products during the bankruptcy process. ...

Global stocks, euro gain on economic outlook hopes

LONDON (Reuters) - Signs of resilience in the euro zone economy and rising hopes for U.S. corporate results lifted global stocks and the shared currency on Tuesday but concerns over Europe's intractable debt problems capped gains. European shares strengthened from the start, led by mining stocks, after forecast-beating results from U.S. aluminum producer Alcoa improved the outlook for commodities. The key FTSEurofirst 300 index was up 1.5 percent at 1,023.72 points, while the global MSCI world equity index added 0.8 percent, helped by earlier gains in Asian markets. U.S. ...

Kenya shilling weakens, tea, cbank may support

NAIROBI (Reuters) - The Kenyan shilling weakened for a second straight session on Tuesday as importers sought U.S. dollars, but traders said a tea auction and the central bank should offer support later in the week. The central bank, which was heavily criticised last year for being slow to rein in inflation and shore up the tumbling shilling, has hoovered up a total of 11.65 billion shillings through repo agreements this year. It has also sold an unspecified amount of dollars and is expected to continue its efforts to keep the currency stable. ...

S.Africa plans to issue 2024 international bond

JOHANNESBURG (Reuters) - South Africa plans to issue about 1 billion dollars of a 12-year bond in the international markets on Tuesday, traders said. The bond is in line with the Treasury's budget plans to tap international markets for about a billion dollars a year for the next two years after issuing 750 million dollars in a 30-year bond in March 2011. IFR Markets said the bond's initial pricing had tightened 5 basis points to 270 basis points from 275 basis points earlier. The deal is led by Barclays Capital and Citygroup, and Treasury is expected to announce final pricing on Tuesday. ...

Stocks drift lower on first day of earnings season

Stocks wandered between small gains and losses early Monday as traders looked ahead to Alcoa Inc.'s fourth-quarter results, the unofficial start of corporate earnings season.

Video: Made in America… Again: Jobs Returning to U.S. from China

Some jobs that were outsourced to China are returning to the United States. In North Carolina, a once shuttered furniture factory is reopening and boasting that its wood furniture is, once again, made in America. The news provides hope for some Americans that jobs they thought were lost forever might be making the round trip back to the United States. Harry Smith reports. (Rock Center)

Romney holds 8-percentage point lead in Florida

JACKSONVILLE, Florida (Reuters) - Presidential candidate Mitt Romney has opened up a lead of 8 percentage points over rival Newt Gingrich in a Reuters/Ipsos poll in Florida, as he regains front-runner status in the Republican race. The online poll released on Friday showed Romney, a former Massachusetts governor and private-equity executive, ahead of Gingrich by 41 percent to 33 percent among likely voters in Florida's January 31 Republican primary. ...

Markets firmer as focus turns from Greece to Fed

TOKYO (Reuters) - Asian shares rose on Wednesday, underpinned by strong earnings from U.S. technology giant Apple, stabilizing European money markets and falling euro zone debt yields, with investors shifting their focus from Europe to the U.S. Federal Reserve. The MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.8 percent and hit an 11-week high, led by the financial sector and a rally in Australia. Australian shares rose 1. ...

Germany, France press for Greek debt deal

PARIS/BERLIN (Reuters) - Germany and France pressed on Monday for a rapid deal between Greece and its private creditors that returns its soaring debt to sustainable levels and said they remained committed to a new bailout that is needed by March to avert a disastrous default. Euro zone finance ministers are due to decide later on Monday what terms of a Greek debt restructuring they are ready to accept as part of a second rescue for Athens. ...

Swiss economy minister sees franc weakening in the midterm

ZURICH (Reuters) - Switzerland's economy minister Johann Schneider-Ammann expects the Swiss franc to weaken to about 1.40 francs per euro in the medium term, he told a Swiss newspaper on Sunday. "My minimum expectation is that the Swiss National Bank keeps the lower boundary of 1.20 (francs per euro)," he told SonntagsZeitung. "In the midterm I expect purchasing parity to be reestablished. It lies at about 1.40 francs per euro." The SNB set a cap at 1. ...

Campaign ad spending surges past $12 million in SC

The crush of campaign ad spending in South Carolina has swollen to more than $12 million so far, with candidates and independent groups paying top dollar to elbow for room in the state's crucial advertising marketplace.

Summary Box: Microsoft 2Q beats amid soft PC sales

FIGHTING TO FLAT: Microsoft battled a weak PC market to post flat earnings in the final quarter of 2011, with net income of $6.62 billion, compared with $6.63 billion a year ago. That's 78 cents per share, better than the 76 cents expected by analysts.

Obama, in Florida, unveils plans to boost tourism

President Barack Obama planted his political flag in Florida on Thursday ahead of the state's Jan. 31 Republican presidential primary, promising a fresh boost to the economy by making it easier for foreign tourists to travel to the U.S.

Apple rolls out digital textbook service iBooks 2

NEW YORK (Reuters) Apple Inc unveiled a new digital textbook service called iBooks 2 on Thursday, aiming to revitalize the U.S. education market and quicken the adoption of its market-leading iPad. The consumer electronics giant has been working on digital textbooks with publishers Pearson PLC, McGraw-Hill and Houghton Mifflin Harcourt, a trio responsible for 90 percent of textbooks sold in the United States. Amazon.com Inc and other device makers have made inroads into an estimated $8 billion market for electronic textbooks. ...

Chinese hunker down for annual holiday travel rush

Desperate to return home for China's most important holiday, migrant worker Li Zhuqing lined up for six chilly days and nights at a train station ticket counter only to be told that all the seats were sold out.

Markets up on hopes IMF will get more money

Markets advanced further Wednesday on hopes the International Monetary Fund would get more money and as Greece resumes discussions with private creditors to get them to agree to reduce the value of their holdings of Greek debt.

Kenya eyes inflation rate of 5 pct by 2014/15

NAIROBI (Reuters) - Kenya plans to cut inflation to five percent by 2014/15 (July-June) through austerity measures to reduce its budget deficit, accompanied by a tight monetary stance, Finance Minister Uhuru Kenyatta said on Tuesday. Year-on-year inflation rose for 13 straight months to peak at 19.72 percent last November, before easing to 18.93 percent in December after the central bank raised rates aggressively and good rainfall pointed to an improvement in harvests. ...

S.Africa's weekly maize exports jump

JOHANNESBURG (Reuters) - South Africa exported 38,486 tonnes of white maize last week compared with 7,954 tonnes in the previous week, the South African Grain Information Service (SAGIS) said on Tuesday. Exports of yellow maize were recorded at 3,045 tonnes, compared with 1,748 tonnes in the week before, SAGIS said on its website www.sagis.org.za. SAGIS also said South Africa imported 11,663 tonnes of white maize from Zambia and 38,847 tonnes of yellow maize from Romania during the period.

Olympus sues 5 auditors seeking up to 1 billion yen

TOKYO (Reuters) - Japan's Olympus Corp said on Tuesday it has sued five past and current auditors seeking up to 1 billion yen ($13 million) in compensation, after they signed off on 13 years of fraudulent accounts. The suit against five individuals, filed with the Tokyo district court on Tuesday, comes after an unofficial panel of experts cleared global accounting groups KPMG and Ernst & Young of any responsibility for the company's $1.7 billion accounting fraud. The role of accounting firms remains under official review. ($1 = 76. ...

Olympus panel clears auditing firms of blame in scandal

TOKYO (Reuters) - An unofficial panel of experts cleared global accounting groups KPMG and Ernst & Young of any responsibility for a $1.7 billion accounting fraud at Japan's Olympus Corp on Tuesday, though the role of the firms remained under official review. The scandal, one of corporate Japan's worst, had raised questions over the role of the two audit firms, which signed off on the accounts of the maker of medical equipment and cameras before the 13-year fraud finally surfaced in October. ...

Home sales edge higher, price gains cool

TORONTO (Reuters) - Existing homes sales rose only slightly in Canada last month, while the average sale price declined, offering further evidence the once hot market is cooling under pressure from a slowing economy, tighter mortgage rules and anxiety about global financial troubles. The Canadian Real Estate Association (CREA) said 39,740 homes changed hands in December, up 1.8 percent from a month earlier, using seasonally adjusted calculations. The number of listings rose 3 percent from November. Actual sales rose 4.6 percent from December 2010. ...

Fed officials say not time to buy bonds now

ST. LOUIS (Reuters) - Two top Federal Reserve officials, including a policy centrist, said on Friday the central bank should hold off buying more bonds to boost growth given a strengthening in the economy. "The data has been stronger in recent weeks and months, and so I think there's probably a good case to stand pat for now," St. Louis Federal Reserve Bank President James Bullard told reporters after a speech here. ...

Gadget Watch: Control a PC with body motions

Don't trash your keyboard and mouse just yet. But three companies at the International Consumer Electronics Show demonstrated depth-sensing cameras that let you to control your computer by moving your hands or body.

Wall Street opens off on reports of euro zone cuts

NEW YORK (Reuters) - Stocks fell at the open on Friday after reports that Standard & Poor's was set to downgrade the ratings on several euro zone countries. The Dow Jones industrial average was down 86.05 points, or 0.69 percent, at 12,384.97. The Standard & Poor's 500 Index took off 10.42 points, or 0.80 percent, at 1,285.08. The Nasdaq Composite Index dropped 20.99 points, or 0.77 percent, at 2,703.71. A senior euro zone source said S&P would announce the downgrades of several nations later Friday, adding that Germany was not one of them. ...

Retail sales weak, jobless claims up

WASHINGTON (Reuters) - U.S. retail sales rose at the weakest pace in seven months in December and first-time claims for jobless benefits moved higher last week, signs the economic recovery is shaky despite a recent pick-up in growth. Retail sales increased a less-than-expected 0.1 percent, despite continued strength in auto purchases, a Commerce Department report showed on Thursday. "The retail sales (data) suggests that spending isn't really picking up any momentum," said Sean Incremona, an economist at 4Cast Ltd in New York. ...

Uganda removes power subsidies, to expand generation

KAMPALA (Reuters) - The Ugandan government announced on Thursday it had abolished electricity subsidies paid to power generators to cushion consumers, a move that will see tariffs rise by an average of 42 percent. Energy minister Irene Muloni said the money freed will be used to expand generation capacity in east Africa's third largest economy. "Government has spent a total of 1.53 trillion Ugandan shillings since 2005 on subsidies to the electricity sub-sector," Muloni said. "This level of subsidy is not sustainable. ...

Philips warns on profits due to weak Europe

AMSTERDAM (Reuters) - Philips Electronics NV warned of soft fourth quarter profits due to weak European consumer markets that is leading to charges for inventory it cannot shift. Europe's biggest consumer electronics maker said it will report a fall in underlying fourth quarter earnings to about 500 mln euros from 910 mln a year earlier. The earnings report, due at the end of January, would also show slowing sales growth across its biggest divisions and unspecified charges for products that are still sitting in its warehouses. ...

China trade growth slows to 2-year lows in December

BEIJING (Reuters) - China's exports and imports grew at their slowest pace in more than two years in December as foreign and domestic demand ebbed, data showed on Tuesday, bolstering expectations of more policy action from Beijing to support the world's number two economy. Annual export growth of 13.4 percent in December was in line with expectations, albeit the slowest since November 2009 except for a February distortion caused by Lunar New Year holidays. But it was a big downside surprise for import growth that caught investor attention, sinking to a 26-month low of just 11. ...

U.S. auto market now industry bedrock

DETROIT (Reuters) - Welcome to an unlikely beacon of hope for the global auto industry -- Detroit. Executives arriving this week for the Detroit auto show find a U.S. car market that has morphed from meltdown three years ago to a safe haven as concerns grow about the stability of other big economies, from Europe to China. Analysts and executives expect 2012 U.S. auto sales to grow 4 percent to 9 percent, the third consecutive annual gain. The only reason automakers are not more bullish is the risk that the sovereign debt crisis in Europe may trigger a broader slowdown. All three U.S. ...

New Yahoo CEO says company needs to "do better"

(Reuters) - Yahoo Inc Chief Executive Scott Thompson said reviving the company's flagging display advertising business was his "highest priority," even as he crafts a broader plan to bring the struggling Internet company back to fighting form. "There's no question that we need to do better," said Thompson on his first quarterly earnings since taking the reins earlier this month, as Yahoo reported another decline in sales and profit on Tuesday. ...

Kenya shilling gains, eyes ICC reactions

NAIROBI (Reuters) - The Kenyan shilling strengthened against the dollar on Tuesday as clients shed long dollar positions they had taken ahead of an International Criminal Court (ICC) ruling on crimes against humanity during post-election violence in 2007/08. Traders said the shilling could firm further aided by dollar inflows from the farm sector and diaspora remittances coupled with continued tightening of liquidity by the central bank. At 0747 GMT, commercial banks quoted the shilling at 85.70/90 against the dollar, stronger than Monday's close of 86.00/30. ...

Penn St. student editor quits after Paterno report

The managing editor of a student-run news organization that covers Penn State resigned hours after the publication tweeted erroneously that former coach Joe Paterno had died.

Broke, sick and lonely, Allen Stanford heads to court

HOUSTON (Reuters) - No one calls him Sir Allen Stanford anymore. He is inmate number 35017-183. On Monday, the Texas financier heads to court in Houston to battle charges that he operated a $7 billion Ponzi scheme from Stanford International Bank Ltd, his offshore bank on the Caribbean island of Antigua. By all accounts, his was a life of luxury, filled with private jets, yachts, mansions and the sport of cricket. ...

Broke, sick and lonely, Stanford heads to court

HOUSTON (Reuters) - No one calls him Sir Allen Stanford anymore. He is inmate number 35017-183. On Monday, the Texas financier heads to court in Houston to battle charges that he operated a $7 billion Ponzi scheme from Stanford International Bank Ltd, his offshore bank on the Caribbean island of Antigua. By all accounts, his was a life of luxury, filled with private jets, yachts, mansions and the sport of cricket. ...

Morgan Stanley CEO to receive $10.5 million

(Reuters) - Morgan Stanley Chief Executive James Gorman was awarded a $10.5 million bonus for 2011, down 25 percent from the previous year, according to a source familiar with the matter. All of Gorman's bonus will be deferred for a period of two to three years, including a $5.1 million restricted stock award detailed in a filing with the U.S. Securities and Exchange Commission on Friday evening. The lower bonuses with tighter restrictions reflect weak performance at Morgan Stanley in 2011, as capital markets reacted to the European sovereign debt crisis and a downgrade of the U.S. bond ...

European banks prepare for worst, hoard cash

Jan 20 (IFR) - European banks are preparing for a potential worsening of the region's sovereign and banking crisis, with many firms stockpiling cash and cutting back on loans to new clients as they seek to protect themselves against a possible seizing-up of financial markets. Faced with 650 billion euros of debt coming due this year - almost 40 percent of which matures before the end of March - lenders are choosing to build up a cash cushion to ensure they can cover redemptions, creating a squeeze on the wider economy in the process. ...

World stocks mixed amid Greek debt talks

Asian stock markets rose Friday amid signs that the U.S. economy was picking up steam, but European shares opened lower as nervous traders awaited results of crucial negotiations between debt-mired Greece and its lenders.

Paymasters wary as IMF starts new funds quest

PARIS (Reuters) - Two years after it requested $500 billion to fight off a global slump, the International Monetary Fund's call for a further $600 billion to limit the fallout from Europe's debt crisis prompted supportive words from Brussels on Thursday but no stampede in the rest of the world to commit the cash. The Washington-based IMF secured a predictably warm response from the European Commission, the European Union's executive body in Brussels, which urged the G20 economic powers to deliver. ...