IBT Staff Reporter

Banks worldwide need to strengthen their balance sheets to stabilize the financial system, senior U.S. regulators said on Tuesday.

British Airways' main cabin crew union, Unite, said on Tuesday its members had rejected a revised airline pay offer, in a long-running dispute over pay and staffing levels which has cost the carrier millions.

Johnson & Johnson's revenue fell far short of Wall Street expectations and it cut its full-year profit forecast for the second time this year, citing repeated recalls of Tylenol and other consumer medicines.

UnitedHealth Group Inc posted a much higher-than-expected second-quarter profit, helped by growth in its government health insurance plans for elderly and low-income Americans, and lower spending of premium revenue on medical costs.

Goldman Sachs Group Inc posted lower second-quarter earnings, hurt by its settlement of U.S. Securities and Exchange Commission fraud charges and the UK tax on bank executive bonuses.

Wall Street fell on Tuesday after disappointing revenues stood out in a flurry of quarterly corporate scorecards and housing data gave more evidence of a slowing economy.

Shares in Nokia jumped on Tuesday on news the world's top cellphone maker has sent out headhunters to find a replacement for Chief Executive Olli-Pekka Kallasvuo.

Goldman Sachs Group Inc said quarterly earnings tumbled 82 percent, coming in well short of expectations, as trading and underwriting revenue slumped, raising questions about how well Wall Street's preeminent bank can navigate a shifting industry landscape.

State Street Corp said operating profit rose 5 percent in the second quarter, fueled by strong growth in its investment management and servicing business.

The euro fell from a more than two-month high against the U.S. dollar on Tuesday as tumbling equity prices hit appetite for risk, prompting investors to book profits ahead of the results from stress tests on European banks.

Gold pared losses to turn higher after hitting its lowest in about two months in Europe on Tuesday as risk aversion returned to the wider markets after Goldman Sachs earnings disappointed investors. A weak technical picture is weighing, but interest from physical buyers is helping limit losses, analysts said.

Wall Street was set for a lower open on Tuesday after a flood of quarterly earnings reports showed disappointed revenues and more evidence of a struggling housing market.

The Bank of Canada raised its key interest rate by 25 basis points to 0.75 percent on Tuesday, as expected, but cautioned that the domestic and global recoveries will be slower than previously expected in a hint that any further hikes may be gradual.

Bank of New York Mellon Corp said second-quarter earnings more than tripled as higher stock prices and tighter credit spreads boosted its asset management and custody business.

PepsiCo Inc reported a quarterly profit just above analysts' expectations, helped by strength in international snack and beverage markets and the recent acquisition of its North American bottlers.

Stock index futures trimmed declines on Tuesday after data showed housing starts fell more than expected in June, but applications for building permits rose more than forecast.

Housing starts fell more than expected in June to their lowest level in eight months, a government report showed on Tuesday, supplying further evidence the economy was losing momentum during the second quarter.

PepsiCo Inc reported higher quarterly profit from operations, helped by strength in international snacks and beverage markets and the recent acquisition of its North American bottlers.

The euro fell to a session low against the dollar while Bund futures extended gains on Tuesday after Goldman Sachs (GS.N) released second quarter results. The euro fell to a low of $1.2840 EUR= from just above $1.2870 before the earnings were released, close to 2 cents from the high of $1.3028 reached earlier in the day.

Shares in Nokia jumped on Tuesday after the Wall Street Journal reported the world's top cellphone maker has sent out headhunters to find a replacement for Chief Executive Olli-Pekka Kallasvuo.

Goldman Sachs Group Inc posted lower second-quarter earnings, hurt by its settlement of U.S. Securities and Exchange Commission fraud charges and the UK tax on bank executive bonuses.

UnitedHealth Group Inc posted a much higher-than-expected second-quarter profit increase on Tuesday, helped by results in its government health insurance plans for elderly and low-income Americans, and the company raised its full-year forecast.

All diamond producing African antions are now rallying behind Zimbabwe threatening to leave the Kimberley Process Certification Scheme if Zimbabwe was not allowed to market its diamonds freely. African countries, led by diamond rich Namibia, has already conveyed this decision to the KP.

Exports from India rose sharply by 32.2% in the first quarter of this fiscal to $ 50.8 billion and growth rate in June alone was 30.4% to US $ 17.75 billion as compared to $ 13.5 billion during June 2009. India's Commerce Secretary, Rahul Khullar stated that the first quarter (April-June 2010-11) exports reached a level of US $ 50.8 billion at a growth of 32.2% while the imports were $ 83 billion with a growth of 34% and a trade deficit of $ 32.2 billion.

Oil was little changed on Tuesday, pressured by declines in European stock markets but supported by expectations that U.S. industry data due later in the day would show a fall in crude inventories. European .FTEU3 shares fell, dragged lower by weakness in bank stocks as investors braced for results from Goldman Sachs (GS.N) due before the opening of the U.S. stock market.

The euro fell on Tuesday, reversing a climb to its highest against the dollar in more than two month, as European shares fell and investors reckoned its gains have been overdone before bank stress test results.

Stock index futures were lower on Tuesday after technology bellwethers International Business Machines and Texas Instruments posted quarterly revenues that fell shy of expectations.

China is satisfied that U.S. Internet giant Google Inc is complying with Chinese laws after it tweaked the way it directs users to an unfiltered search page, a senior official said on Tuesday.

Stock index futures were lower on Tuesday after technology bellwethers International Business Machines and Texas Instruments posted quarterly revenues that fell shy of expectations.