Auto, steel workers split over S. Korea trade pact (AP)

LANSING, Mich. – Many manufacturers and agribusinesses support a new trade deal with South Korea, one reason President Barack Obama and his counterpart from that nation are heading to suburban Detroit on Friday to tour a General Motors plant where cars are being built with South Korean parts. But the pact also will make it easier for South Korea to undercut some U.S. companies, leaving many workers leery of the deal — especially in economically struggling areas. The trade deal Congress passed Wednesday has the support of the United Auto Workers and the United Food and Commercial Workers. Both say it will create jobs in the U.S. by increasing auto and beef exports. Textile and steel workers say it will cost jobs, and even the U.S. International Trade Commission acknowledges the textile industry...

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BRIC countries in talks to boost IMF: report (Reuters)

LONDON (Reuters) – Brazil, Russia, India and China are working on ways to contribute money rapidly to expand the effective funds of the International Monetary Fund, the Financial Times reported on Friday, citing people familiar with talks among the countries. Discussions involving the so-called BRIC countries are aimed at producing a confidence-boosting announcement at the G20 summit next month, the FT reported. The newspaper also said the countries are discussing ways to increase the role of emerging economic nations in combating the eurozone sovereign debt crisis. The FT cited the sources as saying governments are considering either funding an IMF-run special purpose vehicle or lending to the IMF by buying special bonds. The FT said the increased funds could be used to finance new IMF...

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Uniqlo starts U.S. expansion, eyes 200 stores (Reuters)

NEW YORK (Reuters) – Fast Retailing Co Ltd's (9983.T) Uniqlo is launching its U.S. expansion this week with the opening of a flagship store in Manhattan that will anchor a global push to rely less on its home market of Japan. In addition to the Fifth Avenue location, opening on Friday, Uniqlo is also opening a store in New York's Herald Square next week, bringing its U.S. total to three locations. The new stores will be the chain's two biggest. The retailer's goal is to eventually have 200 stores in the United States and U.S. sales of $10 billion by 2020. Uniqlo, run by Japanese billionaire Tadashi Yanai, is directly challenging rivals such as Spain's Inditex SA (ITX.MC), Sweden's Hennes & Mauritz AB (HMb.ST) and U.S.-based Gap Inc (GPS.N) with stores a stone's throw away from theirs...

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Analysis: Wall Street banks profit from their weakness (Reuters)

NEW YORK (Reuters) – The tempestuous bond markets of the third quarter could result in surprising gains for U.S. banks, but investors are unlikely to be impressed. JPMorgan Chase & Co (JPM.N) said on Thursday that about one-fourth of its profit in the quarter resulted from an accounting oddity known as debt valuation adjustments, or DVAs. They are paper gains that occur when investors price more risk into a company's bonds, leading to a reduction in liabilities. Investors, dismayed that so much of JPMorgan's profit came from an accounting quirk rather than cash-generating business, sent the bank's shares 4.8 percent lower. Its Wall Street rivals are likely to report similar results, analysts said. "We're likely to see these DVA gains across all of the big capital markets players," said...

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Weather gives boost to oil plans for stricken ship (AP)

TAURANGA, New Zealand – The calmest weather in days has given salvage crews hope they will be able on Friday to resume pumping the remaining fuel from a cargo ship stuck on a New Zealand reef. The ship Rena has already spilled hundreds of tons of oil and crews are in a race against nature to try and remove the remaining fuel before waves break up the vessel, which has begun to crack apart and is leaning on a 22-degree tilt. Last week crews removed about 10 tons of oil before the weather forced them to postpone salvage attempts. Environmentalists have warned of a disaster for wildlife if all the ship's 1,870 tons (1,700 metric tons) of oil and 220 tons (200 metric tons) of diesel is allowed to spill into the ocean. Nick Bohm, a spokesman for Maritime New Zealand which is managing the emergency...

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Carrefour warns on profit as Europeans cut back (Reuters)

PARIS (Reuters) – Carrefour, Europe's biggest retailer, issued its fourth profit warning in as many months on Thursday, adding to signs cash-strapped shoppers are cutting back and increasing doubts about its turnaround plan. The French group, battling to reverse years of underperformance in its main western European markets, said it expected 2011 operating profit to fall by up to 20 percent, compared with about 15 percent previously. Its shares, already down around 40 percent this year, were off 5 percent by 1025 GMT. The warning, coming after several strategy U-turns, is a fresh blow to the credibility of chief executive Lars Olofsson, who so far has retained the backing of the group's powerful top shareholder Blue Capital -- an alliance between French luxury tycoon Bernard Arnault and...

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JPMorgan Q3 net falls; bank eyes expenses (Reuters)

(Reuters) – JPMorgan Chase & Co's quarterly earnings fell 25 percent, excluding an accounting gain, as European financial turmoil reduced demand for securities underwriting and acquisition advice. The results are the first for the third quarter from a major U.S. bank and underscore how market turmoil has clobbered underwriting and merger advisory fees. JPMorgan shares closed down 4.8 percent on Thursday, pulling down other big bank stocks and weighing on the wider market. "There were some very strong headwinds for JPMorgan," said Marshall Front, chairman of Front Barnett Associates LLC. JPMorgan Chief Executive Jamie Dimon said the company will cut 1,000 jobs in its investment bank over the next 18 months. Banks globally are laying off staff as new regulations squeeze potential profits...

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56 Percent: The Most Troubling Number About Occupy Wall Street (ContributorNetwork)

A recent poll has shown that far more people are in agreement with the Occupy Wall Street movement than are opposed to it, even though it remains, going into its fourth week on October 14, a vaguely unfocused and amorphous demonstration against a number of things wrong with America and its government. In fact, according to the Time poll, the protest movement has a favorable rating of 54 percent (as opposed to a 23 percent unfavorable rating). However, even though a majority of Americans agree with those holding signs saying "We Are The 99%" and many of its positions -- such as prosecuting corporate executives responsible for the financial meltdown and raising taxes on millionaires -- 56 percent of the poll's respondents said they believe that the demonstrations will have little impact on...

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AP Interview: Walesa backs Wall Street protesters (AP)

WARSAW, Poland – Poland's former President Lech Walesa says he supports the Occupy Wall Street movement in New York that protests corporate greed. The Nobel Peace laureate told The Associated Press that he is planning either a visit or a letter to the protesters. "I am weighing now how and when to best support them, without doing any harm," Walesa said Thursday. Since mid-September, the protesters have besieged a park near Wall Street to rally against corporate greed, saying that is the main cause for the U.S.'s failing economy. Similar protests are planned across Europe this weekend, including in Poland's capital, Warsaw. The 68-year-old Walesa said the global economic crisis has made people aware that "we need to change, reform the capitalist system" because we need "more justice, more...

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JPMorgan drags blue chips down; Google up late (Reuters)

NEW YORK (Reuters) – The Dow and S&P 500 slipped on Thursday after JPMorgan's earnings and China's soft trade data revived worries about the impact of slower growth on profits. The declines put an end to three straight days of gains that capped off a 12 percent increase in the S&P 500 since hitting a low on October 4. The Nasdaq stayed in positive territory, helped by semiconductor shares. Some analysts said a pause was in store for the market, given the S&P 500's recent advance. The benchmark S&P 500 has had its largest seven-day rise since March 2009 on growing optimism that European leaders will find a way to contain the region's debt problems. JPMorgan Chase & Co (JPM.N), the second-largest U.S. bank, slid 4.8 percent to $31.60 and was the biggest drag on the Dow...

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Google's Q3 eases fears over ad market, costs (Reuters)

SAN FRANCISCO (Reuters) – Google Inc's results trounced Wall Street expectations with the help of strong advertising sales and deft cost controls, driving its shares roughly 6 percent higher. The Internet search and advertising leader, benefiting from a growing online ad market and sharper research focus, increased its profit by 26 percent and revenue by 37 percent in the third quarter. A darkening economic outlook -- particularly in Europe, had stoked worries about advertising growth. But Google's revenue and paid-clicks performance boded well for the fourth quarter, analysts said. "These guys continue to show that they are not immune to the market but that they are going to perform better than traditional players," said Macquarie Research analyst Ben Schachter. Robust demand from advertisers...

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Fitch cuts ratings on European banks (AP)

LONDON – Concerns that governments are less likely to come to the rescue of financial institutions prompted Fitch credit ratings agency to downgrade its outlook for Britain's Royal Bank of Scotland Group PLC, Lloyds Banking Group and Swiss lender UBS AG on Thursday. Fitch also said it is reviewing the ratings of a host of European lenders, citing ongoing exposure to sovereign-debt in peripheral Europe and sluggish economic growth prospects. The costs of additional bank regulation and political pressure to reduce state support for banks continue to pose challenges to lenders, Fitch said. Fitch is the second major credit rating agency in less than a week to slash its ratings of Royal Bank of Scotland and Lloyds. Last week, Moody's cut its ratings on the two U.K. banks for the same reason....

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U.S. judge says Samsung tablets infringe Apple patents (Reuters)

SAN JOSE, California (Reuters) – A U.S. judge said Samsung Electronic's Galaxy tablets infringe Apple Inc's iPad patents, but also that Apple has a problem establishing the validity of its patents. The comments from U.S. District Judge Lucy Koh came on Thursday in a court hearing on Apple's request to bar some Galaxy products from being sold in the United States. Apple and Samsung are engaged in a bruising legal battle that includes more than 20 cases in 10 countries as the two jostle for the top spot in the smartphone and tablet markets. Earlier on Thursday, an Australian court slapped a temporary ban on the sale of Samsung's latest computer tablet in that country. Apple sued Samsung in the United States in April, saying the South Korean company's Galaxy line of mobile phones and tablets...

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Ivy League professors speak to anti-Wall Street protesters (Reuters)

BOSTON (Reuters) – Ivy League professors dropped by anti-Wall Street protest camps in Boston and New York on Friday to school the demonstrators on theories that bolster their demands to end inequality in the American economy. Part of the Occupy Boston site was temporarily renamed "Free School University" as the crowd gathered at the feet of Brown University international political economy professor Mark Blyth and Boston University international relations professor Kevin Gallagher. Standing on a wooden crate, they discussed with a crowd of about 50 people the misdeeds of Wall Street and Washington. Future forums were scheduled to address anarchism, psychology and law and privacy rights. "People have every right to be angry," Blyth said about the Wall Street bailout in 2008, which left banks...

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Retailers report solid gains for September (AP)

NEW YORK – September offered the latest sign that Americans will shop, but only when they think they're getting a deal. The International Council of Shopping Centers said Thursday that revenue rose 5.5 percent in September, with several retailers including Target, Limited Brands and Kohl's posting strong gains as consumers snagged discounted merchandise. The revenue increases, which beat Wall Street estimates, leave uncertainty about whether retailers will have to offer more bargains to lure consumers to buy during the winter holiday shopping season. Retailers can make up to 40 percent of their revenue during the period, which runs from November through December. "This past month shows consumers are rewarding retailers who are matching great merchandise with great deals - a clear signal...

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Consumer borrowing dropped $9.5 billion in August (AP)

WASHINGTON – Consumers slashed their borrowing in August by the most in 16 months. The drop suggests many worried about taking on new debt while the economy slumped and the stock market fluctuated wildly. Fewer people used their credit cards. And a measure of demand for auto and student loans fell. Total borrowing dropped $9.5 billion in August, the Federal Reserve said Friday. In July, borrowing increase $11.9 billion. Americans have been struggling all year with high unemployment, meager pay raises and pricier goods and gas. That has depressed consumer spending, which fuels 70 percent of economic growth. In August, consumer confidence tumbled to a two-year low, and retail sales were flat. The weak economy, along with gridlock in Washington and heightened concerns over Europe's debt crisis,...

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Earnings on deck as Europe eyed (Reuters)

NEW YORK (Reuters) – Investors tiring of the euro zone's debt crisis dragging the market all over the place are hoping to focus on something else next week -- earnings. But will third-quarter results be enough to drive the S&P 500 higher? Or will Europe's woes get in the way? The unofficial start of earnings season begins on Tuesday, when Dow component Alcoa Inc (AA.N) reports third-quarter results after the close of trading. The earnings and guidance that may follow could give investors some clues on the health of the global economy, including any impact the euro-zone debt crisis has had and might continue to have on profits. But even if earnings paint a rosier picture than anticipated, stocks may face a stiff test in climbing much further, as analysts pointed to the declining 50-day...

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France, Belgium, Luxembourg agree Dexia rescue (Reuters)

BRUSSELS (Reuters) – France, Belgium and Luxembourg agreed a rescue plan for Dexia SA on Sunday ahead of a planned board meeting expected to decide on a break-up of the first lender to fall victim to the euro zone crisis. French Prime Minister Francois Fillon, his Belgian counterpart Yves Leterme and Luc Frieden, the finance minister of Luxembourg, where Dexia has a large presence, had found a solution for the stricken Franco-Belgian bank, Leterme's office said early Sunday afternoon. "The governments ... have reaffirmed their solidarity in finding a solution to secure the future of Dexia," it said in a statement after two hours of talks at Egmont Palace in Brussels -- also the site of talks on a previous Dexia rescue bid in 2008. "The suggested solution, which is also the result of intense...

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Merkel, Sarkozy tackle differences over euro crisis (Reuters)

BERLIN (Reuters) – German Chancellor Angela Merkel will thrash out differences with French President Nicolas Sarkozy on Sunday over how to use the euro zone's financial firepower to counter a sovereign debt crisis threatening the global economy. With the turmoil threatening to spiral into financial meltdown as the value of banks' sovereign bond holdings slide, Merkel and Sarkozy are likely to discuss in Berlin both how to manage Greece, prevent contagion and strengthen lenders. The implosion of Belgian lender Dexia, the first victim of the crisis, has added a sense of urgency to the talks. The prime ministers of France and Belgium and the finance minister of Luxembourg agreed a rescue plan for Dexia on Sunday ahead of the stricken Franco-Belgian bank. "Dexia will be among the topics that...

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European stocks rise ahead of U.S. jobs data (Reuters)

LONDON (Reuters) – European stocks rose on Friday and the euro clung to gains from a 2-cent rally after euro zone policymakers moved to shore up struggling banks and fend off a financial crisis, while markets positioned for U.S. employment data due later. The European Central Bank (ECB) announced aggressive liquidity measures on Thursday, throwing a lifeline to lenders whose wholesale funding has dried up as market confidence ebbed, and the European Union said it would present a plan for a coordinated recapitalization of banks by member states. Gold, oil, copper and equities were all on course to post weekly gains on hopes that Europe's leaders may finally be getting to grips with a two-year-old sovereign debt crisis, although the scale of the task meant caution remained high. "European...

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Amid anti-tax mood, Ark. cities raising taxes (AP)

CARLISLE, Ark. – Like many residents in the central Arkansas town of Carlisle, James Dowdy doesn't like taxes. The 70-year-old retired farm equipment salesman complains about "tax and spend" government and said he vowed to never vote for a local tax increase after the last one he supported more than 25 years ago. But that was before cracks and potholes started eating away the town's streets and mold evicted the police from their station downtown. So he grudgingly voted yes this month to raise local sales taxes to pay for improvements. "We need a jail, and we need good roads," he said, with resignation. A funny thing is happening in the midst of the most powerful anti-tax climate in years: towns are raising taxes. In Arkansas, 16 communities have brought sales tax proposals to their voters...

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For Greeks, future is a void (AP)

ATHENS, Greece – To find symbolism in the Greek financial crisis, just go to the source. The national image on the two-euro coin in Greece depicts an ancient myth about the abduction of Europa, a Phoenician princess, by Zeus, the king of the gods in the form of a bull. The saga known as the "Rape of Europa," whose protagonist rides the bull's back in an image reproduced by artists over the centuries, mirrors the turbulent journey of Greece and the rest of Europe, hitched together in an agonizing spiral that seems to go on and on and on. The crude parallel ends there, however — Zeus turned into a human, had his way with Europa, and she bore him children. The last chapter in modern Greece, meanwhile, is still blank. Will there be a debt default, with its ominous implications for the global...

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Metro CEO Cordes says not seeking contract renewal (Reuters)

FRANKFURT (Reuters) – Eckhard Cordes, chief executive of German retailer Metro (MEOG.DE), said he no longer wishes to renew his contract, just weeks after winning support from the group's top shareholder. Cordes had seemed in danger of losing his job last month after reports that he had fallen out of favor with some supervisory board members, who were due to vote later in the autumn on whether his contract would be extended past October 2012. However, he battled for support among other members of the board and in a rare public statement, the Haniel family, which owns 34.24 percent of Metro, said they were in favor of a contract extension for Cordes. Cordes, who informed the supervisory board and major shareholders of his decision on Sunday, criticized the public debate over his contract,...

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European bank bill well over $133.8 billion: Ireland (Reuters)

DUBLIN (Reuters) – There is general agreement that European banks will need fresh capital well in excess of 100 billion euros ($133.8 billion) and it will likely come from a variety of sources, including the euro zone rescue fund, Ireland's finance minister said on Saturday. Germany and France are split ahead of key talks on Sunday over how to strengthen shaky European banks. Paris is keen to tap the euro zone's 400 billion rescue fund, the EFSF, to recapitalize its own banks and Berlin is insisting the fund should be used as a last resort. The International Monetary Fund (IMF) has said European banks need 200 billion euros in additional funds. "I think there is general agreement that it will be significantly in excess of 100 billion (euros)," Michael Noonan told reporters on the sidelines...

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