The Wall Street Journal-20080116-Business and Finance
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Business and Finance
Citigroup and Merrill are turning to investors from Japan, Korea, Singapore, Saudi Arabia and Kuwait as they post big losses linked to the subprime-mortgage crisis. Citigroup is writing down certain assets by $18.1 billion; Merrill's write-downs may total nearly $15 billion. Financial stocks slid on fears credit problems are spreading into auto loans and other types of credit.
The Dow industrials tumbled 277.04, or 2.17%, to 12501.11 on concern over consumer spending and Citigroup's mounting losses. Treasurys rose sharply.
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Boeing is close to announcing further delays in its 787 Dreamliner program that might hurt its ability to deliver as many jets as promised next year.
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Intel posted a 51% surge in quarterly net but sounded a cautious note about this year, pushing the chip maker's shares down over 14% in after-hours trading.
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December retail sales fell 0.4%, their worst results in six months, as consumers curbed spending on a broad swath of products.
Congress and the White House can reach a stimulus plan if Republicans don't insist on permanent tax cuts, Rep. Frank said.
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Europe's economies are showing signs of slowing significantly even as inflation rates rise.
European stocks posted steep losses on concern over consumer spending and write-downs.
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S&P sharply raised its projected losses for subprime mortgages, a sign it may cut ratings on more mortgage-backed securities.
IndyMac plans to slash 24% of its work force and further cuts are likely, the latest sign of fallout from mortgage-default woes.
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Bank of America and Citigroup, battered by dismal market results, are scaling back their investment-banking operations.
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Booz Allen is in talks to sell its government-consulting business to Carlyle. A sale price would likely be around $2 billion.
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Apple unveiled a new Internet movie-rental service, a revamped product for getting video to TV sets and an ultrathin laptop.
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Northern Rock shareholders voted to limit some of the board's power to negotiate a private-sector bailout of the U.K. lender.
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Liz Claiborne hired celebrity designer Isaac Mizrahi as creative director to revive its flagship women's apparel brand.
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Burberry warned it might miss its 2007 profit estimate. Williams- Sonoma cut its outlook due to weak holiday sales.
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U.S. airlines are expected to post a collective quarterly loss, hurt by storms and fuel prices.
Aircraft insurers face a loss of some $300 million for 2007 due in part to expensive accidents.
