Daily Wrap Up - July 16

JPMorgan Powers Ahead, CIT Plummets, Cap and Trade and Jobs

 @ibtimes on July 16 2009 6:32 PM

JP Morgan profit jumps 36 percent J.P. Morgan Chase & Co. on Thursday reported a 36 percent jump in profit, a figure way beyond analyst expectations. The bank reported a record rise in revenues and producing a net income of $2.7 billion. The record rise is attributed to the record investment-banking fees.

CIT sinks on bankruptcy fears

Shares of CIT group fell 75 percent on Thursday amid concerns that the U.S. lender will go bankrupt after it failed to secure help from the U.S. government to relieve its liquidity pressure. CIT bondholders held a conference call to discuss their options today, according to the Wall Street Journal.

Senate debates climate bill impact on American jobs

The U.S. Senate Committee on Environment and Public Works held a hearing Thursday about the impact on American jobs of the American Clean Energy and Security Act. Republicans claimed the bill will cause a loss of more than 2 million jobs and relocate them abroad, while Democrats said the bill will spur green jobs in America.

Paulson admits to underestimating the extent of the financial crisis Former U.S. Treasury Secretary Henry Paulson admitted on Thursday before lawmakers that he had initially underestimated the extent of the financial crisis and described the financial markets at the time as being driven by fear and uncertainty. Paulson said it was appropriate for the government to ensure that Bank of America did go through with the deal.

Google profit up 19 Pct, beats expectations

Google Inc.'s second-quarter earnings were up 19 percent, but revenue slowed as advertising sales were down from the previous quarter. The search engine giant posted a profit of $1.48 billion, or $4.66 a share, compared with $1.25 billion, or $3.92 a share, in the same quarter last year. Read Full Article here.

IBM raises full-year outlook despite lower revenue

IBM reported a 13 percent fall in revenue amid a decline in corporate spending, but cost cuts and a shift to more profitable businesses helped it achieve higher-than-expected earnings, and the company raised its outlook for the full year. Read Full Article here.

Roubini: 'I am not forecasting economic growth before year's end' Prominent economist, Nouriel Roubini, on Thursday at a Chilean investors' conference said he initially forecast the recession would last 24 months and we are currently 19 months into the recession, and signs of recovery are only expected to appear in 2010. Various media reports on took the economists comments out of context reporting he said the economy is recovering but that is not the case.

Opposition to RHJ in GM's Opel's sale too strong: analyst

Opposition for General Motors to sell its European Opel brand to Belgian financial investor RHJ is too great, an analyst said on Tuesday, according to Reuters. The German government would prefer to have the company sold to investor Magna because that company is heavily supported by unions and the four German states with a stake in the process, according to the report.

U.S. and China to collaborate on buildings efficiency

During the last days of his visit to China, U.S. Energy Secretary Steven Chu did not say the Asian country had committed to reductions in carbon emissions but said he was greatly encouraged by what he saw on the trip, Bloomberg reported.

The U.S. and China agreed to develop energy efficient building designs. They also agreed to develop a joint Clean Energy Research Center that will focus on building energy efficiency, clean coal including carbon capture and storage, and clean vehicles.

'Renewed pessimism' for Airline operators: survey

The recovery in the airline market for premium class seats will not take place until 2011, some industry respondents said, according to a new survey. The International Air Transport Association, in its quarterly business confidence survey found that airline operators had experienced renewed pessimism due to the ongoing recession and rising fuel prices. Even the optimistic respondents don't see significant recovery before the fourth quarter this year and others not until early 2011, the IATA said in its report.

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