On Wednesday August 18, 2010, 5:38 pm EDT
GM takes 1st step in
shedding government ownership
DETROIT (AP) -- General
Motors Co. on Wednesday filed the first batch of paperwork required by
regulators to sell stock to the public, a step that brings the automaker closer
to its goal of shedding government ownership.
The 700-page registration
form, filed with the U.S. Securities and Exchange Commission, begins a process
that will lead to an initial public offering of GM's stock. No date was set for
the sale, but experts say the IPO could come as early as October.
Stakeholders in the
company, including the U.S. Treasury Department, initially will sell common
stock, while GM will sell preferred shares that are similar to bonds.
Target 2Q profit rises but
keeps outlook tempered
NEW YORK (AP) -- Target
Corp. is counting on driving customers into its stores in the coming months
with two weapons: a 5 percent discount for its store credit-card holders and an
emphasis on food.
Even with those, the
company offered a conservative sales outlook as a slowing economy weighs down
its expectations.
The cautious view comes as
Target reported a 14.3 percent increase in net income, as improved business in
its credit card division, cost-cutting and strong demand for its stylish
fashions, which carry fat profit margins, overcame disappointing sales.
Stocks close modestly
higher on retail reports
NEW YORK (AP) -- Stocks
ended a seesaw day with a modest gain Wednesday after investors found some
pluses in retail earnings reports.
The Dow Jones industrial
average and other major indexes fluctuated throughout the day before closing
with slender gains. There was little news to motivate investors a day after a
stream of improving economic numbers restored some of their enthusiasm for
stocks and sent the Dow up 103 points. But retailers continued reporting
second-quarter earnings and investors found a few positives.
BHP bets on crop boom with
hostile Potash bid
SYDNEY (AP) -- BHP
Billiton's hostile $38.5 billion takeover offer for one of the world's biggest
fertilizer producers, a bet that developing nations will drive a farming boom,
could get the Australian iron ore miner involved with yet another commodity
prized by China -- potash.
In what is likely just an
opening salvo, BHP on Wednesday reacted to Potash Corp. of Saskatchewan's
dismissal of its bid as "grossly inadequate" by going directly to
shareholders with the $130 a share offer. BHP said it was offering a 20 percent
premium to the closing price on Aug. 11 -- the day before BHP's first approach
to Potash directors.
Limited Brands 2Q net
income jumps
COLUMBUS, Ohio (AP) --
Limited Brands Inc. says its second-quarter net income rose sharply as more Americans
shopped at its mall stores -- Victoria's Secret and Bath and Body Works -- and
it recorded several one-time gains.
The company, based in
Columbus, Ohio, also raised its full-year outlook.
Limited reported late
Wednesday that it earned $178.7 million, or 54 cents per share, for the quarter
that ended July 31. That's up from $74.3 million, or 23 cents per share, earned
in the same quarter last year.
Deere 3Q profit up 47 pct
on strong US farm sales
Deere & Co. said
Wednesday its third-quarter profit grew 47 percent because American and
Canadian farmers bought enough of the company's large equipment to offset a
sharp downturn in Europe, but Deere kept its forecast for the year
conservative.
The company reported $617
million in net income, or $1.44 per share, in the quarter that ended July 31.
That's up from $420 million, or 99 cents per share, a year ago.
Deere says global revenue
spiked 16 percent to $6.84 billion.
Judge approves Barclays
deal with Justice Dept
WASHINGTON (AP) -- A judge
who questioned whether Barclays Bank PLC was getting off too easily nonetheless
approved a deal Wednesday that will likely enable the financial institution to
avoid prosecution on allegations that it engaged in $500 million in illegal
transactions with banks in Cuba, Iran, Libya, Sudan and Myanmar for more than a
decade.
Under the arrangement with
the Justice Department, Barclays will pay $298 million -- half of it to the
United States and the rest under an agreement with the Manhattan district
attorney's office in New York.
Levis launches new global
brand, aimed at China
SHANGHAI (AP) -- Jeans
maker Levi Strauss & Co. launched a new global brand in China on Wednesday,
joining a growing list of companies that hope to crack this fast-growing and
youthful market by tailoring their products to Chinese tastes.
Models at the launch were
wearing sneakers and high-heeled sandals: not a cowboy hat or boot in sight.
The new brand is aimed at young consumers in emerging markets, starting with
China, Singapore and South Korea.
From Nissan sedans to
watches and Hermes luxury goods, global companies increasingly are designing
products and brands with the Chinese market in mind as incomes rise amid rapid
economic growth.
American Airlines to charge
for front-row seats
NEW YORK (AP) -- American
Airlines has found another fee.
The Fort Worth, Texas,
airline said Wednesday it's now charging between $19 and $39 for "Express
Seats" -- those spots in the first few rows of coach that include bulkhead
seats.
The carrier, which is
operated by parent AMR Corp., is following in the footsteps of several other
airlines who already charge for special seats. UAL Corp.'s United Airlines,
Continental Airlines, US Airways, JetBlue, Frontier, Spirit and AirTran all
have some seats that cost extra.
AP poll: BP image
recovering from spill, still low
WASHINGTON (AP) -- BP's
image, which took an ugly beating after the Gulf oil spill, is recovering since
the company capped the well, though the oil giant's approval level is still
anything but robust. A majority of Americans still aren't convinced it is safe
to eat seafood from parts of the Gulf or swim in its waters, a new AP poll
shows.
Politically, President
Barack Obama's rating on handling the nation's worst oil spill has nudged up to
about 50 percent, the poll indicated. Fewer people now think the spill is a
major national issue, and more support increased drilling in U.S. coastal
waters than oppose it. Still, safety remains a worry.
By The Associated Press
The Dow rose 9.69, or 0.1
percent, to 10,415.54.
The Standard & Poor's
500 index rose 1.62, or 0.2 percent, to 1,094.16. The Nasdaq composite index
rose 6.26, or 0.3 percent, to 2,215.70.
Benchmark crude lost 35
cents to settle at $75.42 a barrel on the New York Mercantile Exchange. The
contract dropped as low as $73.83 before recovering most of its losses.
In other Nymex trading in
September contracts, heating oil fell 0.1 cent to settle at $2.0249 a gallon,
while gasoline added 0.8 cent to settle at $1.9612. Natural gas lost 2.8 cents
to settle at $4.239 per 1,000 cubic feet.
In London, Brent crude fell
46 cents to settle at $76.47 a barrel on the ICE Futures exchange.