Oct. 29, 2010 at 7:33 a.m.
Filed under:
Economy,
Policy,
Politics
By Reuters
NYU economics professor Nouriel Roubini. (Stephen Lovekin/Getty Images)
The U.S. economy is a “fiscal train wreck” waiting to happen that risks ushering in a period of stagnation featuring minimal growth, high unemployment and deflationary pressure, U.S. economist Nouriel Roubini wrote on Friday.
In a commentary for the Financial Times, Roubini — one of the first economists to predict the housing crash in the United States and known as ‘Dr Doom’ for his pessimistic forecasts — said fiscal and monetary stimulus had prevented another depression.
But he said that further quantitative easing likely to be announced by the Federal Reserve next Wednesday will have little effect on U.S. growth in 2011, “so fiscal policy should be doing some of the lifting to prevent a double dip recession,” he said. Get the full story »
Oct. 29, 2010 at 7:25 a.m.
Filed under:
Pharmaceuticals
By Mary Ellen Podmolik
Baxter International Inc. announced the sale of its U.S. generic injectables business to Hikma Pharmaceuticals PLC for approximately $112 million, a move that will require Baxter to take an after-tax third-quarter special charge of $70 million, or 12 cents a share, to write down the assets of the business.
The sale involves Baxter’s high-volume, generic injectable products in vials and ampoules, which are sold primarily in the United States including chronic pain, anti-infective and anti-emetic products, along with the Cherry Hill, N.J., manufacturing facility, and a Memphis-area warehouse and distribution center. Approximately 750 employees who support the business will also transfer as part of the arrangement. Get the full story »
Oct. 29, 2010 at 7:23 a.m.
Filed under:
Autos,
Banking,
IPOs,
Unions
By Reuters
In a series of moves that pave the way for an IPO and strengthen its finances, General Motors Co. said on Thursday it would repay $2.1 billion to U.S. taxpayers and make early payments to pension and retiree health plans.
The announcement comes just days before bankers are expected to begin a road show for potential investors in an initial public offering that would allow the U.S. government to start to reduce its stake in the top U.S. automaker.
Get the full story »
Oct. 29, 2010 at 7:03 a.m.
Filed under:
Earnings,
Pharmaceuticals
By Reuters
Merck & Co. reported disappointing quarterly sales on Friday and took an almost $1 billion charge related to a previously disclosed U.S. government probe of its recalled Vioxx arthritis drug.
The drugmaker, which completed it $41 billion acquisition of Schering-Plough Corp in November 2009, said third quarter earnings fell 89 percent to $372 million, or 11 cents per share, reflecting charges related to the merger as well as the new $950 million Vioxx legal reserve. The company earned $3.46 billion, or $1.61 per share in the year earlier period. Get the full story »
Oct. 29, 2010 at 6:39 a.m.
Filed under:
Bankruptcy,
Earnings,
Management,
Retail
By Reuters
General Growth Properties, the U.S. mall owner expected to emerge from bankruptcy in early November, reported negative third-quarter funds from operations, taking a hit from reorganization expenses.
Funds from operations for its core mall properties were losses of $29.3 million, or 9 cents a share, compared with a positive $88.9 million, or 28 cents a share a year earlier. Get the full story »
Oct. 29, 2010 at 6:28 a.m.
Filed under:
Consumer news,
Policy,
Politics
By Reuters
The financial industry continues trying to thwart the Obama administration’s effort to set up an effective consumer protection agency, though one is needed now more than ever, new consumer czar Elizabeth Warren charged on Thursday.
“We fought hard to get here, and those who tried to block the agency’s creation have already said that they will be back,” Warren said in remarks prepared for delivery at the University of California in Berkeley,
“Every day, they spend money to find a way to cut back the agency’s power — even before its work has begun,” she added. A text of her remarks was issued in advance in Washington. Get the full story »
Oct. 29, 2010 at 6:28 a.m.
Filed under:
Autos,
Earnings,
Environment,
Green
By Associated Press
Japanese automakers Honda and Mazda posted hefty profits despite a strengthening yen as the global recovery and government incentives for green cars drove sales higher.
Oct. 29, 2010 at 5:56 a.m.
Filed under:
Earnings,
Health care
By Associated Press
Managed care company Cigna Corp. said Friday its third-quarter profit fell 6.7 percent on higher medical costs and losses from the company’s reinsurance segment. The Philadelphia insurer says it earned $307 million, or $1.13 per share, in the three months that ended Sept. 30. That’s down from the $329 million, or $1.19 per share, in the same period last year. Get the full story »
Oct. 29, 2010 at 5:56 a.m.
Filed under:
Energy,
IPOs
From The New York Times | The wind farm developer First Wind has shelved its plans for an initial public offering after cutting its offering price by nearly 25 percent.
Oct. 29, 2010 at 5:39 a.m.
Filed under:
Earnings: Merck, Chevron Corp, Pepco Holdings, Progress Energy, NiSource Inc.
Reports: GDP Q3, 7:30 a.m.; Employment cost index, Chicago PMI, 8:45 a.m.; Reuters/UofM Consumer Sentiment, 8:55 a.m.
Oct. 29, 2010 at 5:36 a.m.
Filed under:
Health care,
Pharmaceuticals,
Policy
By Reuters
Vivus Inc.’s weight-loss drug candidate Qnexa failed to win over U.S. health regulators, who declined to approve the diet pill, asking for evidence related to heart risk and other information.
The Food and Drug Administration told Vivus on Thursday that its new drug application for Qnexa could not approved in its present form. Get the full story »
Oct. 28, 2010 at 6:05 p.m.
Filed under:
Autos,
Litigation
By Associated Press
Toyota Motor Corp. bought back cars from drivers who reported sudden acceleration defects, but the company didn’t tell federal regulators about it, according to court documents filed in litigation against the automaker.
Plaintiffs’ lawyers contend the Japanese company compelled the owners to sign confidentiality agreements that prevented them from speaking publicly about the issues they encountered. Get the full story »
By Ameet Sachdev
Tyrone Fahner, a partner at the Chicago law firm of Mayer Brown, will become the president of the Commercial Club of Chicago, the Tribune has learned.
Fahner succeeds R. Eden Martin, also a lawyer, who has been president of the influential organization since 1999. Fahner will take over Jan. 1, W. James Farrell, chairman of the club, confirmed Thursday. Get the full story »
Oct. 28, 2010 at 5:37 p.m.
Filed under:
Airlines,
Transportation,
Travel
By Julie Johnsson
Southwest Airlines is aiming for a larger slice of the Big Apple, and the corporate travel market, as it launches a slew of new flights from Chicago to Newark next spring and firms plans for onboard Internet service.
Texas-based Southwest said Thursday that it would enter Newark Liberty International Airport March 27, with six daily flights from Midway and two from St. Louis. Southwest also unveiled plans to begin charging a flat $5 per-flight fee for broadband connections. Get the full story »
Oct. 28, 2010 at 5:23 p.m.
Filed under:
Earnings,
Entertainment
By Reuters
Coinstar Inc., the electronic kiosk company, raised its full-year outlook on Thursday after posting a big jump in sales at its DVD rental unit Redbox, sending its shares up more than 10 percent after the market’s close.
The Bellevue, Wash., company, which has courted controversy with Hollywood for Redbox’s $1 a night DVDs, said revenue at the unit rose 54 percent. Get the full story »
