Goodyear profit gets boost from lower North America costs
(Reuters) - Goodyear Tire & Rubber Co (GT.O), the largest U.S. tire maker, reported a higher-than-expected quarterly profit as raw material costs fell in North America.
Shares of the company, which sells tires under brands such as Dunlop, Sava and Fulda, rose as much as 10 percent on Wednesday.
The company said it expects to sell 1-2 percent more tires in 2015, allaying some concerns about slowing demand due to softness in many economies.
The Conflict Between Germany and the E.C.B. That Threatens Europe
We’ve known for some time about the tension between the European Central Bank, charged with guiding the economies of the 18 countries that use the euro, and Germany, the largest and richest member of that zone. A news report sheds light on just how dysfunctional that relationship has become.
It’s not an overstatement to say that the future of Europe depends on how this conflict is resolved.
Mario Draghi, the E.C.B. president, is barely on speaking terms with Jens Weidmann, the president of the German Bundesbank (and a member of the E.C.B.'s policy-setting governing council), Reuters reported Thursday. When Mr. Draghi dispatched a deputy to Berlin to visit aides to Chancellor Angela Merkel, the message received was that vocal German attacks on the central bank were unlikely to end anytime soon.
Canada Stocks Rise Most in a Year as Crude Gains on China Data
Canadian stocks rose the most in more than a year, extending a rally to a fourth day, as commodity producers advanced after data showed China’s economy grew faster than forecast.
RMP Energy Inc. (RMP) and Surge Energy Inc. advanced at least 2.6 percent as energy shares rebounded for a fourth day. Canadian Pacific Railway Ltd. rose 1.3 percent after reporting an improving operating ratio. Air Canada soared 6.7 percent for a fourth day of gains.
Euro sells off after report ECB considering corporate bond buys
The euro fell sharply against the dollar on Tuesday after Reuters reported the European Central Bank was looking at buying corporate bonds as soon as December in its efforts to revive the stagnating euro zone economy.
The move, if realized, would expand the private-sector asset-buying program the ECB began on Monday, which is aimed at fostering lending to businesses in hopes of spurring growth.
"Headlines on the market today about the ECB potentially buying corporate bonds has reinvigorated attention on the downside for the euro," said Richard Cochinos, head of Americas G10 FX strategy at Citi in New York.
Chinese online giant Alibaba set for record 15billion stock market flotation
The biggest firm you’ve never heard of is poised for a record £15.3billion stock market listing.
Online giant Alibaba accounts for a staggering 80% of all internet retail sales in China, and handles more transactions than eBay and Amazon - combined.
The firm, founded by Jack Ma in 1998, is expected to set the price of its shares later on Thursday, ahead of a listing in New York on Friday.
The move could value the business at £122bn, making it the world’s third most valuable tech company after Google and Facebook.
Alibaba works in a similar way to eBay, in that it acts as a middleman between buyers and sellers.
Conservatives hope more US companies follow Burger King north
Industry Minister James Moore hopes more U.S. companies will follow Burger King north, seeking low taxes, a trading window on the world and the Conservative government’s warm embrace.
“I’m pleased to see that foreign firms, including some very high-profile American firms, like Burger King, like Microsoft and others, are looking north to move to Canada,” Mr. Moore told a Washington luncheon crowd on Wednesday. Burger King Worldwide Inc. bought Tim Hortons Inc., and a new home where corporate taxes are far lower, for $12.5-billion last month.
Fed to Hit Biggest US Banks With Tougher Capital Surcharge
WASHINGTON—The Federal Reserve plans to hit the biggest U.S. banks with a costly new requirement aimed at reducing the risk that some financial firms remain "too big to fail" nearly six years after the financial crisis erupted.
In testimony prepared for a Senate Banking Committee hearing Tuesday, Fed Governor Daniel Tarullo said the regulator intends to impose a capital surcharge that will require the biggest U.S. banks to maintain fatter cushions to protect against potential losses. The Fed's version of the capital surcharge will be tougher than one agreed to by international regulators.
Ports of Auckland firms up supply chain with logistics joint venture
Ports of Auckland, the ocean hub of the country's biggest city, is extending its control over the national supply chain in a joint venture with privately held transport and logistics firm Netlogix.
The two Auckland-based companies will set up Nexus Logistics to provide logistics and distribution services across the country, including to the port company's competitors, they said in a statement. As part of the deal, Ports of Auckland will put its subsidiary Conlinxx, which manages the Wiri inland port, into the joint venture.
Housing starts in Canada slowed in August
The annual pace of housing starts in Canada slowed in August to 192,368 units, down from 199,813 in July, according to the Canada Mortgage and Housing Corp.
The pace fell short of the 195,000 units forecast by analysts.
"The Bank of Canada may be looking for a rotation away from housing and the consumer, but low rates continue to support residential investment," CIBC economist Nick Exarhos said in a report.
McDonald's August Sales Highlight Struggles in Key Markets
McDonald’s (MCD) saw its monthly global sales post their worst decline in more than a decade, as the iconic hamburger chain continues to struggle in key markets.
Sales at restaurants open at least 13 months were down 3.7% in August, McDonald’s reported on Tuesday. August marked the fourth consecutive month of declines for sales in the U.S. Restaurants in Asia and Europe also booked weak results.