The Wall Street Journal-20080112-Business and Finance
Return to: The_Wall_Street_Journal-20080112
Business and Finance
The Dow industrials tumbled 246.79 points, or 1.9%, to 12606.30 as recession concerns drove investors toward the safety of bonds and gold. Fresh signs are appearing that consumer spending, which had been stable throughout the housing downturn, is slowing.
Tiffany reported weak holiday sales and cut the top end of its profit forecast, signaling that the slowdown in sales of luxury goods is broadening.
---
Bank of America agreed to buy Countrywide for $4 billion in stock, a deal that began with a December phone call from Countrywide CEO Angelo Mozilo.
Bank of America's purchase may drive other mortgage lenders that have heft to withstand the housing turmoil into deals.
---
Saudi billionaire Prince Alwaleed bin Talal may buy another stake in Citigroup, which is talking to other investors, including China Development Bank.
---
China's trade surplus surged 48% to $262.2 billion in 2007. The U.S.'s trade deficit rose 9.3% to $63.12 billion in November, its biggest gap in 14 months.
---
CIT Group forecast a loss, saying it is boosting loan-loss provisions amid continued weakness in home-lending markets.
---
UBS sought shareholder support for a planned capital increase of about $12 billion aimed at protecting its balance sheet.
---
Lockheed officials and the Pentagon plan to meet to discuss troubles over a pact to build helicopters for White House use.
---
Northern Rock agreed to sell a mortgage portfolio to J.P. Morgan for $4.42 billion in a move to help pay off the lender's debts.
---
Gold crept toward $900 an ounce, helped by bullish crop reports, before settling at $896.10. Crude fell $1.02 to $92.69.
---
Starbucks shuffled several top management jobs as part of CEO Schultz's turnaround plan.
