The Wall Street Journal-20080201-Business and Finance
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Business and Finance
Full Text (400 words)Motorola said it may sell or spin off its flagship handset business, which accounts for about half of the company's annual sales of $36 billion. The announcement comes amid declining cellphone-market share and as Carl Icahn prepares to mount a new proxy campaign to win board seats. Motorola's shares rose over 10% after hours.
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Harry Macklowe reached a tentative deal with his lender to turn over effective control of seven Manhattan buildings.
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MBIA reported a $2.3 billion loss, hurt by declines in values of securities it insures. The bond insurer said it was working to preserve its credit rating.
Moody's ratcheted up its projections for losses among subprime loans amid a worsening outlook for the housing market.
The Dow industrials rose 207.53 points, or 1.7%, to 12650.36 as MBIA's upbeat comments helped the index recover. It finished January down 4.6%.
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Merrill repurchased from Springfield, Mass., mortgage-backed securities whose value fell during the credit crisis.
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Google's profit rose 17% despite slower growth in consumer clicks on its ads and higher fees paid to partners. Shares fell 6.8% in after- hours trading.
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Jobless claims rose by 69,000 for the week ended Jan. 26, their largest one-week gain in over a decade. Consumer spending edged up 0.2% in December.
Euro-zone inflation rose unexpectedly to 3.2% last month, while consumer confidence slumped. The data and strong euro are posing a dilemma for the ECB.
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MasterCard's profit jumped, driven by 28% revenue growth and an increase in transactions. Shares climbed 9.5% to $207.
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Merck is the subject of a federal grand-jury investigation into its sales and marketing practices for painkiller Vioxx.
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Wyeth reported profit of $1.02 billion but said it is re-evaluating its business model. Bristol-Myers had a loss and took a charge tied to the credit crunch.
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IAC said the dispute with Liberty Media has hurt its ability to conduct business. A court will hear arguments today.
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Anheuser-Busch's talks with InBev over a possible merger have become more serious. The U.S. brewer's profit rose 12%.
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Procter & Gamble and Colgate reported higher profit. Both sought to allay concerns about signs of slowing in the U.S.
Mattel's net rose 15%, fueled by international growth. Barbie-brand sales in the U.S. fell 12%.
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Shell said it earned $31.3 billion last year as soaring oil prices offset lower output, which is forecast to fall this year.
