Archives for News

AIG bid to buy back toxic assets could help market

American International Group’s bid to take back $15.7 billion in risky mortgage bonds may inject fresh confidence in a market where investors had started to question a nearly two-year rally. AIG said on Thursday it made the offer to the Federal Reserve Bank of New York for the residential mortgage-backed securities it gave up at the height of the financial crisis. The Fed on Friday confirmed it received AIG’s (AIG.N) offer for the bonds, held in Maiden Lane II, an entity formed in late 2008 as part of AIG’s bailout. For more than a year, the insurer has been preparing
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Carnival cruise line hit by rising fuel prices

Cruise operator Carnival Corp. cut its full-year earnings outlook Friday because of rising fuel prices and itinerary changes in the Middle East and North Africa. Carnival also said Friday that its first-quarter earnings will come in at 19 cents per share. Analysts surveyed by FactSet were expecting for earnings of 20 cents per share. Carnival’s first-quarter forecast was for earnings between 15 cents and 19 cents per share. The cruise operator now anticipates full-year earnings of $2.50 to $2.60 per share. That’s down from a prior range of $2.90 to $3.10 per share. Analysts expect earnings of $2.94 per share
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Obama, McConnell agree & disagree on budget cuts

President Barack Obama and the Senate’s top Republican both declared on Friday they want to take on the huge entitlement programs driving America’s long-term deficits — but their lines of attack differed sharply and that could lead to a showdown over government borrowing. Senate Republican Leader Mitch McConnell warned that GOP senators would not vote to increase the federal debt limit unless Obama agreed to significant long-term budget savings that could include cost curbs for Social Security, Medicare and Medicaid, laying down a high-stakes marker just weeks before the limit is reached. Obama said he also wants to tackle military
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Obama breaks promise on White House transparency

President Barack Obama once promised that negotiations over his health care overhaul would be carried out openly, in front of TV cameras and microphones. Tell that to the White House now. Republican congressional investigators got the brush-off this week after pressing for details of meetings between White House officials and interest groups, including drug companies and hospitals that provided critical backing for Obama’s health insurance expansion. Complying with the records request from the House Energy and Commerce Committee “would constitute a vast and expensive undertaking” and could “implicate longstanding executive branch confidentiality interests,” White House lawyer Robert Bauer said in
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Wisconsin Governor signs union-busting bill into law

Wisconsin Gov. Scott Walker on Friday signed into law the proposal that eliminates most union rights for public employees, quietly concluding a debate that provoked three weeks of loud, relentless protests at the Capitol. Walker, the 43-year-old son of a preacher who has swiftly become one of the most polarizing politicians in the country, signed the legislation in private Friday morning. He planned a ceremonial signing later in the day. The governor insisted the proposal was necessary to balance the state budget, and he never backed down, even after 14 Senate Democrats fled the state in an attempt to block
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Meltdown feared after explosion at Japan nuke power plant

An explosion at a Japanese nuclear power station Saturday destroyed a building housing the reactor amid fears that it was close to a disastrous meltdown after being hit by a powerful earthquake and tsunami. Friday’s double disaster, which pulverized Japan‘s northeastern coast, has left 574 people dead by official count, although local media reports said at least 1,300 people may have been killed. Tokyo Power Electric Co., the utility that runs the Fukushima Dai-ichi plant, said four workers had suffered fractures and bruises and were being treated at a hospital. A nuclear expert said a meltdown may not pose widespread
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Obama ‘heartbroken’ by devastation in Japan

President Barack Obama said he was “heartbroken” by images of devastation in Japan following Friday’s deadly earthquake and tsunami, and pledged U.S. assistance to help the country recover. “Our hearts go out to our friends in Japan and across the region, and we’re going to stand with them as they recover and rebuild from this tragedy,” Obama said during a White House news conference. Hundreds were dead or missing in Japan following Friday’s 8.9 magnitude earthquake — the largest in Japan’s history — and the accompanying tsunami. The West Coast and several islands in the Pacific were also under tsunami
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California, Oregon suffer damage from tsunami

The warnings traveled quickly across the Pacific in the middle of the night: An 8.9-magnitude earthquake in Japan spawned a deadly tsunami, and it was racing east Friday as fast as a jetliner. Sirens blared in Hawaii. The West Coast pulled back from the shoreline, fearing the worst. People were warned to stay away from the beaches. Fishermen took their boats out to sea and safety. The alerts moved faster than the waves, giving millions of people across the Pacific Rim hours to prepare. In the end, harbors and marinas in California and Oregon bore the brunt of the damage,
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