Gulf of Mexico spill costs hit $2 billion, BP says
NEW YORK (MarketWatch) — BP said Monday its costs arising from the continuing oil spill in the Gulf of Mexico hit the $2 billion mark as the environmental disaster reached the grim 60-day mark and as the oil major reportedly set plans to float $10 billion in debt.
Gold prices ease off fresh highs
NEW YORK (CNNMoney.com) — The price of gold surged to a fresh intraday record Monday before pulling back as investors digested China’s decision to allow the yuan to appreciate against the dollar.
What prices are doing: Gold for August delivery rose 40 cents to $1,258.70 an ounce. Earlier, prices climbed to $1,266.50, beating the record intraday high of $1,263.40 set the previous session. Gold prices also set a settlement record Friday, at $1,258.30 an ounce.
Factbox: Winners and losers from a firmer yuan
The immediate winners from a yuan revaluation would be firms that buy raw materials and other inputs overseas, such as airlines purchasing jet fuel and automakers sourcing parts.
Chinese exporters are likely to be the hardest hit. A relatively mild yuan appreciation against the dollar of about 5 percent would cause losses at these companies, according to a Reuters poll conducted at China’s top trade fair in April.
Following is a list of some likely winners and losers from any yuan appreciation.
In today’s news updates we offer links to keep up to date on the BP Oil Spill crisis and the news, economics and politics surrounding it.
BP Reports Highest Oil-Capture Rate Since Spill Began
June 17 (Bloomberg) — BP Plc captured 18,600 barrels of oil from its leaking Gulf of Mexico well yesterday, a 78 percent increase from the previous day and the most since the spill began in April.
About 21 percent of the oil was burned aboard the Q4000, a floating rig connected to the wellhead that began operations early yesterday, BP said in a statement posted today on its website. The rest was stored aboard the Discoverer Enterprise, a drillship that’s been collecting oil since June 4, BP said.
Is BP a Buy? Wall Street isn’t sure.
FORTUNE — Simply put, the crisis in the Gulf is an environmental, political, and financial disaster. You will hear no argument on any of those counts here.
What you will get are short answers to two pressing questions about BP and a longer one to a third. Now that BP (BP) has suspended its dividend and agreed to set aside $20 billion for costs relating to the spill, it’s time to determine what the future might look like for the embattled oil giant. And who else to ask but Wall Street?
BP’s Shareholders Take It on the Chin
Just how big is this oil spill, really? For BP shareholders, about $88 billion big — and growing, Christine Hauser reports in The New York Times.
That is roughly how much money investors have lost on paper as the oil giant’s share price has plunged. And, in the grim calculus of the spill — the lives and livelihoods lost, the barrels of oil spewing into the Gulf of Mexico — the financial toll keeps mounting, too.
BP is so big, and its stock is so widely held, that its troubles are being felt throughout the investment world. Large insurance companies in Britain, big money management companies in the United States and government-controlled investment funds in Norway, Kuwait, China and Singapore rank among the company’s largest stockholders. BP may be British, but Americans own half its stock.
Rudy Giuliani Bashes President Obama As Political Opportunist On BP Oil Spill
Former Mayor Rudy Giuliani went after President Obama on FOX News Channel’s FOX & Friends over the catastrophic Gulf Coast oil spill this morning, saying while BP Executive Tony Hayward “deserves all the criticism he gets…the government has played a big role in this down here as well.”
Giuliani, who as we all know ran for president in 2008, said Hayward would get treated “like a punching bag… There is something very unseemly about it.”
BP chairman apologises for ‘small people’ gaffe
BP has tried to set right another blooper after the company’s chairman referred to victims of the Gulf of Mexico oil spill as the ”small people”, a reference that prompted an immediate outcry.
Carl-Henric Svanberg apologised for having spoken ”clumsily” to reporters after his White House meeting with President Barack Obama on Wednesday.
”What I was trying to say – that BP understands how deeply this affects the lives of people who live along the Gulf and depend on it for their livelihood – will best be conveyed not by any words but by the work we do to put things right for the families and businesses who’ve been hurt.”
In today’s news updates we provide links to stories related to GM profits, oil drilling protocol and tensions between South and North Korea.
GM Announces First Quarterly Profit Since 2007
General Motors Co. on Monday reported its first quarterly profit in three years, buoyed by stronger global sales and savings won through last year’s government-funded bankruptcy.
The auto maker warned the next few quarters may not be as strong amid turmoil in Europe and slowing growth in the massive Chinese market.
Oversight on Offshore Drilling May Change, but U.S. Dependence on Oil Won’t
LONDON — When the congressional hearings are forgotten and the catastrophe in the Gulf of Mexico has dropped from the headlines, the most surprising thing about the spill of millions of gallons of oil may be what it does not change about the business of BP and the rest of its often-vilified industry.
South Korea freezes North Korea money ahead of Cheonan warship sinking report
South Korea said Monday it was freezing government funds for North Korea, just days before the findings of an international investigation into the sinking of the Cheonan warship are scheduled for release.
Tensions have been high since the Cheonan was torn in half by an unexplained explosion and sank on March 26, killing 46 South Korean sailors. It is widely suspected that the explosion came from a North Korean torpedo, but the South has avoided directly accusing the North, saying it will wait until the results of the investigation are announced.
During today’s news update we provide links to Obama’s Supreme Court pick and economy related news.
Elena Kagan to be Obama’s Supreme Court pick
President Barack Obama will name Solicitor General Elena Kagan as his pick to replace retiring Supreme Court Justice John Paul Stevens, a choice that comes 176 days before the 2010 midterm election and is freighted with potential political implications.
The announcement, which was first reported by NBC’s Pete Williams, is expected to be formalized by Obama today.
Kagan was regarded in some political circles as a somewhat safe pick given that she was confirmed to her current post last March by a 61 to 31 vote.
European stocks surged Monday, as investors took heart from a €750 billion ($954.83 billion) rescue package intended to stabilize the single currency and prevent the Greek debt crisis from spreading to other member countries.
Overnight, European Union finance ministers reached agreement on a support plan for nations facing financial meltdown. It will consist of up to €440 billion in loans from euro-zone governments and €60 billion from an EU emergency fund, in addition to €250 billion from the International Monetary Fund.
Fannie Mae asks for more federal aid after Q1 loss
NEW YORK, May 10 (Reuters) – Fannie Mae (FNM.N), the largest U.S. residential mortgage provider, on Monday reported a net loss of $13.1 billion in the first quarter and said it tapped the Treasury for additional aid of $15.3 billion.
Another strong sales month for McDonald’s
CHICAGO (MarketWatch) — McDonald’s Corp. had another strong month, posting same-store sales growth in all of its global markets for April, the fast-food giant said Monday.
In today’s news update we provide links to stocks in Greece, the Gulf Coast oil spill and health insurance pool.
BEFORE THE BELL:US Stock Futures Up;Focus On Merger, Data, Greece
U.S. stock futures were higher on Monday, with investors set to shake off Friday’s big sell-off as they focused on a well-flagged merger between Continental and United Airlines, anticipation of strong economic data and the Greek aid package.
Futures for the Dow Jones Industrial Average rose 39 points to 10,977, while those for the Nasdaq 100 rose 4 points to 2,003. Futures for the S&P 500 rose 2.6 points to 1,186.
Worries in the financial sector triggered a sharp fall in stocks on Friday, though the month of April was positive.
Gulf Coast oil spill may take months to contain
Officials from the Obama administration and oil giant BP say it may take up to three months to to seal off a leaking oil well 5,000 feet below the surface of the Gulf of Mexico that has created a massive environmental crisis that could affect much of the gulf coast.
BP chief executive Tony Heyward said Monday that “the worst-case scenario is that we would need to contain this for two to three months whilst a relief well is drilled.”
Crist embraces Obama’s high-risk health insurance pool
Gov. Charlie Crist will leave it to the Obama administration to run the federally subsidized high-risk health insurance plan that is to cover people unable to buy such insurance in the private market due to preexisting conditions such as cancer or diabetes.
In a letter late Friday to Health and Human Services Secretary Kathleen Sebelius, Crist said he agreed that states and the federal government must cooperate in expanding healthcare for Americans but said “unfortunately Florida is not in a position to authorize new financial obligations.”
Today’s news updates include links on Wall Street, K-State Goes ‘Green’ and Air Traffic in Europe.
Wall Street gives much to lawmakers in reform debate
The political action committees of six Wall Street banks spent the first quarter of 2010 giving handsome donations to Republicans and Democrats who are critical to passing legislation that could determine the future of the U.S. financial sector.
The banks — JPMorgan Chase, Wells Fargo, Citigroup, Bank of America, Morgan Stanley and Goldman Sachs — gave about $106,000 to 12 members of the Senate and House of Representatives who sit either in leadership positions or on the committees that forged the measures.
K-State listed as ‘green school’
MANHATTAN — Move over, purple. Kansas State University is going green.
That is the view of new guidebook about institutions of higher education that have demonstrated an above-average commitment to sustainability in terms of campus infrastructure, activities and initiatives.
K-State is the only school in Kansas to be included in the newly released “Princeton Review’s Guide to 286 Green Colleges,” a free comprehensive guidebook that profiles the nation’s most environmentally responsible campuses. The book was developed by The Princeton Review in partnership with the U.S. Green Building Council.
Europe seeks new air traffic control system
BRUSSELS — The European Union speeded up action on a sweeping reform of its air traffic control system Friday after a crisis over volcanic ash turned much of the continent into a no-fly zone for days.
“The worst is now over, but there is a huge amount of work to be done to deal with crisis management,” EU Transport Commissioner Siim Kallas told reporters.
In today’s news updates we provide links to health care updates.
Key Democrats Still in Play as Health Vote Approaches
WASHINGTON — House Democrats, entering the final 48-hour countdown on their yearlong effort to overhaul the health care system, emerged from a caucus meeting on Friday morning amid signs that crucial votes remained in play in both directions.
Full text of President Obama’s speech on health reform
The link above will forward you to the text from President Obama’s speech at Georgetown University.
Caterpillar Opposes Health Care Bill, AARP and AMA Support It
As Congress prepares for a final vote on health care reform legislation, an executive from Caterpillar, Inc., notified the Democratic and Republican leaders of the House that the company is asking legislators to vote against the health care reform bill because it will drive up the company’s health care costs “by more than 20 percent (over $100 million) in the first year alone and put at risk the coverage our current employees and retirees receive.”
In today’s news updates we provide links on health care, international women’s day and AIG sale to MetLife.
Obama to appeal for public support on health care
WASHINGTON — With the fate of his signature legislative initiative far from certain, President Barack Obama is taking his last-ditch push for health care reform on the road.
In a speech Monday in Philadelphia, Obama will try to persuade the public to back his plan to remake the nation’s health care system, while also urging uneasy lawmakers to cast a “final vote” for a massive reform bill in an election year.
Obama’s pitch in Philadelphia, along with a stop in St. Louis Wednesday, comes as the president begins an all-out effort to pass his health care proposals. Though his plan has received only modest public support, Obama has implored lawmakers to show political courage and not let a historic opportunity slip away.
World Marks International Women’s Day
(CNN) — The world marks International Women’s Day on Monday, an annual celebration that highlights their economic, political and social achievements.
“International Women’s Day is the story of ordinary women as makers of history; it is rooted in the centuries-old struggle of women to participate in society on an equal footing with men,” the United Nations says.
AIG in $15.5 billion unit sale to MetLife
NEW YORK (CNNMoney.com) — AIG agreed Monday to sell its American Life Insurance Co. unit to MetLife Inc. for $15.5 billion in cash and stock, in beleaguered AIG’s second sale of an international unit in a week.
AIG said it will sell the unit, known as Alico, for $6.8 billion in cash and the remainder in MetLife equity. The deal leaves AIG as the second-largest shareholder of MetLife, with a stake of more than 20% in the company.
In today’s news update we will hear from AIG, Freddie Mac, Fannie Mae, Toyota and updates on the job market.
AIG Plans to Sell Remaining Transatlantic Stake
American International Group Inc. plans to sell its remaining 13.8% stake in casualty reinsurer Transatlantic Holdings Inc. held by its American Home Assurance Co. subsidiary.
The 9.19 million shares AIG wants to sell would be worth about $494 million based on Translantic’s closing share price on Thursday.
Transatlantic shares were down 3.7% in recent trade at $51.77, while AIG rose 4.3% to $27.87 amid a broad market gain.
Rep. Frank questions safety of Fannie Mae, Freddie Mac investments
An influential voice on Capitol Hill has unexpectedly called into question the safety of investing in Fannie Mae and Freddie Mac, raising the specter that investors who have lent money to the two firms or bought their mortgage-backed securities could one day suffer losses.
The comments by Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, come despite the assumption of many investors that investments in the two mortgage finance giants are risk-free. Until now, federal officials — who took over Fannie and Freddie two years ago to save them from collapse — have signaled to the market that lending the companies money is just about as safe as lending to the U.S. government itself.
Toyota incentives rouse would-be buyers
NEW YORK (CNNMoney.com) — Toyota’s new incentive plan appears to have piqued the interest of buyers looking to snag a good deal, reports showed Thursday, even as the automaker’s recall woes linger.
Edmunds.com and kbb.com, Web site of Kelly Blue Book, both reported significant increases in traffic among users expressing serious interest in Toyota vehicles since the automaker announced a new incentive plan on Tuesday.
Jobs report shows unemployment unchanged
NEW YORK (CNNMoney.com) — As severe winter storms crippled East Coast cities, the U.S. economy shed thousands of jobs in February, according to a government report released Friday. But the unemployment rate remained unchanged.
The Labor Department said the economy lost 36,000 jobs in the month, fewer than the 68,000 jobs economists were expecting, according to a survey conducted by Briefing.com.
In today’s news update, we provide links to headlines regarding Bill Clinton’s release from the hospital, online retail sales, and China and Dalai Lama.
Bill Clinton released from hospital
New York (CNN) — Former President Clinton left a New York hospital early Friday, less than a day after doctors performed a procedure to restore blood flow in one of his coronary arteries.
Terry McAuliffe, a Clinton confidant and former chairman of the Democratic National Committee, confirmed Clinton had left New York-Presbyterian Hospital’s Columbia campus.
Retail sales get a boost online
NEW YORK (CNNMoney.com) — Retail sales rose in January, driven by strength in discount retailers and online merchants, according to a government report Friday.
The Commerce Department said total retail sales edged up 0.5% to $355.8 billion last month, compared with December’s revised decline of 0.1%. Economists surveyed by Briefing.com had anticipated that January sales would grow 0.3%.
China Urges Obama to Cancel Planned Dalai Lama Meeting
China is urging the US government to cancel plans for President Barack Obama to meet next week with Tibet’s exiled spiritual leader, the Dalai Lama.
Chinese Foreign Ministry spokesman Ma Zhaoxu issued a statement Friday, urging the United States to, in his words, “immediately withdraw” plans for a meeting between President Obama and the Dalai Lama.
