Home sales up more than expected
Reinforcing recent upward trends in the housing market, new home sales in the U.S. rose 11 percent to 384,000 compared to May, moving ahead of expectations. In the report for May issued last month, adjusted sales were 346,000, revised upwardly today by 2,000 sales. The supply of homes also fell to 8.8 months at the current rate.
U.S. seeks China cooperation on clean energy: Obama
President Barack Obama on Monday held the first day of talks with a Chinese delegation in Washington D.C. addressed economic issues including energy related topics. Obama said China and the United States have interest in creating clean and secure energy sources and none of the two profits from a dependence on foreign oil neither any will be able to fight climate change unless they work together, the Associated Press reports today.
Trading under regulatory pressure
U.S. financial regulators are moving to add new rules for securities and derivatives trading. The Securities and Exchange Commission today made permanent a rule approved on a temporary basis last year requiring broker dealers to promptly purchase or borrow securities to deliver on a short sale. Also the House Agriculture and Financial Services committees are considering options to ban “naked credit default swaps” and increase reporting requirements for short interests in credit default swap contracts, Reuters reported, citing documents from the regulators.
Verizon to cut 8,000 fixed line jobs
Telecom company Verizon Communications today said profit fell in the second quarter and announced it would cut 8,000 jobs in its fixed line business. Overall, the company earned $3.16 billion, or 52 cents per share, down from 66 cents per share a year ago. Excluding items, the firm matched analysts’ expectations of 63 cents per share. Revenue was up 11 percent to $26.36 billion, nearly equal to expectations of $26.85 billion.
Labels seek digital album sales on Apple
Major music labels are planning to launch a new digital album format to debut on a future Apple Inc tablet PC in September, unnamed people familiar with the plans told Reuters. Apple first proposed a similar idea in 2007 and labels have worked separately on their own idea, two people said.
GM, Chrysler make their own decisions, says Obama’s top auto advisor
President Obama’s chief adviser on the struggling car industry Ron Bloom says bailed out General Motors Co. and Chrysler LLC, are operating on their own, without any government restrictions, saying government involvement in day-to-day activities could affect their future viability and ability to repay taxpayers for the help they received, according to Bloomberg. Bloom testified before Congress today that the companies’ boards of directors won’t have to check with the government before making decisions
Honeywell cuts outlook
Honeywell International Inc, the airplane electronics firm, cut its full-year profit forecast on Monday, citing a tough recession. It expect earnings of $2.85 per share for the year, at the low end of its previous expectations. Analysts had expected a profit of $2.83 per share, according to Reuters. Second quarter income was $450 million, matching estimates while revenue was $7.57 billion, slightly below forecasts.
Four states get over $54 Million for clean and efficient energy
The U.S. Department of Energy announced funds from the stimulus package for energy efficiency and renewable energy programs. Nevada received a fund of $13.9 Million, Rhode Island $9.5 million, Wisconsin $22.1 million and Vermont $8.8 million. The funds are expected to trigger each state's economy, creating jobs and ultimately contributing to a national goal set by President Obama's administration to reduce dependence on foreign oil.