On Friday March 18, 2011, 6:01 pm EDT
Investors cheer dividend
increases at large banks
NEW YORK (AP) -- Bank
shareholders got a long-awaited gift from the U.S. Federal Reserve on Friday
when the central bank cleared the way for major lenders to increase their
dividends.
It was the last hurdle left
on the path to recovery for banks and signified a return to health for the
industry. Banks were forced to cut their dividends to preserve cash after the
financial crisis that peaked in September 2008, when the industry was propped
up by a U.S. government bailout package totaling $700 billion.
Banks that received
clearance to raise their dividends wasted little time in doing so. JPMorgan
Chase & Co. said it would increase its quarterly dividend to 25 cents a
share from 5 cents. Wells Fargo & Co. raised its dividend to 12 cents,
while U.S. Bancorp increased its dividend to 12.5 cents a share.
Yen rise curbed after G-7
pledges to support Japan
TOKYO (AP) -- The yen
backed away from historic highs and Japanese shares rose Friday after the Group
of Seven major industrialized nations promised coordinated intervention in
currency markets to support Japan's recovery from a catastrophic earthquake and
tsunami.
The G-7 pledge came a day
after the yen soared to an all-time high against the dollar, possibly
threatening Japan's exports and hampering its economic recovery from the March
11 quake that triggered an unfolding nuclear crisis.
NY Fed confirms
intervention in currency markets
WASHINGTON (AP) -- The New
York Federal Reserve Bank confirmed that it intervened in currency markets on
Friday for the first time in more than a decade.
The disclosure came a day
after the Group of Seven major industrialized nations pledged in a statement to
join in a coordinated effort to weaken the Japanese yen. The yen has surged in
the last week to postwar record levels following the Japanese earthquake and
tsunami.
Cisco announces first
dividend
NEW YORK (AP) -- Cisco
Systems Inc., the world's largest maker of computer networking gear, on Friday
said its first-ever cash dividend will amount to 6 cents per share and will be
paid on April 20.
The company has said since
last year that it would start paying a dividend equating to an annual yield of
1 percent to 2 percent, but had not specified the amount or precise timing.
Goldman will pay Berkshire
$5.65B to redeem shares
OMAHA, Neb. (AP) -- The
Goldman Sachs Group Inc. said Friday it has received regulators' permission to
spend $5.65 billion to repurchase Berkshire Hathaway's preferred shares in the
banking giant.
Goldman said the Federal
Reserve has approved its plan to repay Warren Buffett's company for the $5
billion investment it made at the height of the financial crisis in the fall of
2008.
Goldman was eager to repay
Berkshire because it had been paying 10 percent interest on the preferred
shares, which translated into an annual expense of $500 million.
The repurchase will weigh
down Goldman's first-quarter earnings by $2.80 per share because it includes a
one-time preferred dividend of about $1.65 billion.
The Federal Reserve also
approved Goldman's overall capital spending plan for 2011, including the
repurchase of common stock and a possible increase in the bank's quarterly
dividend. But Goldman did not announce any stock purchase or dividend plans on
Friday.
Unemployment rises in
nearly all metro areas
WASHINGTON (AP) --
Unemployment rose in nearly all of the 372 largest U.S. cities in January
compared to the previous month, mostly because of seasonal changes such as the
layoff of temporary retail employees hired for the holidays.
The Labor Department said
Friday that the unemployment rate rose in 351 metro areas, fell in only 16, and
was unchanged in 5. That's worse than December, when the rate fell in 207 areas
and increased in 122.
Other seasonal trends, such
as the layoff of construction workers due to winter weather, also contributed
to the widespread increase.
Nationwide, the
unemployment rate dropped to 9 percent in January from 9.4 percent in December.
It ticked down to 8.9 percent in February. But the national data is seasonally
adjusted, while the metro data isn't, which makes it more volatile. The metro
data also lags the national report by one month.
The report shows that metro
areas hit hard by the housing crisis are still struggling with high
unemployment. At the same time, a strong recovery in the manufacturing sector,
particularly among U.S. auto companies, has bolstered many smaller cities in
the Midwest.
General Mills in exclusive
talks with Yoplait
General Mills Inc. has
entered into exclusive negotiations to buy a majority stake in French yogurt
company Yoplait, the company said Friday.
Yoplait is the world's
second-largest yogurt maker and is owned by French investment firm PAI partners
and French cooperative dairy group Sodiaal. If successful, General Mills would
acquire the roughly 50 percent stake held by PAI partners and work with
Sodiaal, which is retaining its stake.
General Mills did not
disclose the value of the offer but the Wall Street Journal, citing a personal
familiar with the situation, has placed it at $2.2 billion.
Netflix locks up rights to
its first TV series
LOS GATOS, Calif. (AP) --
Netflix Inc.'s Internet video streaming service will be the only place to watch
an upcoming TV series with a high-powered pedigree that includes Academy
Award-winning actor Kevin Spacey and the director of an Oscar-nominated film
about Facebook.
The deal announced Friday
illustrates Netflix's growing clout in Hollywood as its mines revenue from its
20 million subscribers to create new home entertainment options. In this
instance, Netflix will be showing a series that won't have a scheduled
broadcast time. Episodes could be released in bunches instead of just one per
week.
Borders outlines additional
28 store closings
NEW YORK (AP) -- Borders
Group Inc. plans to close an additional 28 stores, bringing the total closings
to 228, as it tries to reorganize in bankruptcy protection.
The additional closings
would bring the remaining store total to about 400.
The closings are set for a
wide variety of states, including seven in California. Stores previously on the
list are expected to be closed by the end of April and the 28 additional stores
by the end of May.
Starbucks raises prices on
packaged coffee
Starbucks Corp. is raising
prices it charges retailers for packaged coffee by up to 12 percent to cope
with higher costs for beans.
The world's largest coffee
chain said that it informed grocery customers Friday of the increase for
Starbucks and Seattle's Best Coffee brands. It's up to the grocers and other
retailers to decide if they want to pass along that increase to consumers.
Starbucks also raised the
price it suggests stores charge to $9.99 from $8.99 for a 12-ounce package of
Starbucks coffee and to $7.99 from $6.99 for Seattle's Best.
By The Associated Press
The Dow Jones industrial
average gained 83.93 points, or 0.7 percent, to 11,858.52. The Standard &
Poor's 500 index rose 5.49, or 0.4 percent, to 1,279.21. The Nasdaq composite
index gained 7.62, or 0.3 percent, to 2,643.67.
Benchmark West Texas
Intermediate crude for April delivery fell 35 cents to settle at $101.07 per
barrel.
In other Nymex trading for
April contracts, heating oil fell 4.06 cents to settle at $3.0243 per gallon
and gasoline futures were flat, settling at $2.9494 per gallon. Natural gas
added a penny to settle at $4.168 per 1,000 cubic feet