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July 2, 2012 at 10:26 PM   |   Comments

Stocks rally stalls Monday

NEW YORK, July 2 (UPI) -- U.S. stock indexes were mixed Monday in contrast to the rally that ended trading last week.

The Dow Jones industrial average had added 227 points Friday (2.2 percent) while the broader Standard & Poor's 500 index gained 33 points, or 2.5 percent, its largest one-day leap of the year.

On Monday, economic data were mixed.

The Markit Manufacturing Purchasing Managers Index, a measure of U.S. manufacturing, dropped from 53 percent to 52.5 percent May to June.

Construction spending rose in May from April, the Commerce Department said. But in Europe, the unemployment rate rose to 11.1 percent from 11 percent.

By close of trading on Wall Street, the DJIA shed 8.70 points, 0.07 percent, to 12,871.39. The S&P 500 gained 3.35 points, 0.25 percent, to 1,365.51. The Nasdaq composite index gained 16.18 points, 0.55 percent, to 2,951.23.

On the New York Stock Exchange, 2,151 stocks advanced and 904 declined on a volume of 3.1 billion shares traded.

The 10-year benchmark treasury note rose 19/32 to yield 1.591 percent.

The euro fell to $1.2582 from Friday's $1.2661. Against the yen, the dollar fell to 79.52 yen from 79.81 yen.

In Tokyo, the Nikkei 225 index dropped 0.04 percent, 3.30, to 9,003.48.

In London, the FTSE 100 index added 1.25 percent, 69.49, to 5,640.64.


Barclays chairman to step down

LONDON, July 2 (UPI) -- Barclays Chairman Marcus Agius said he would resign to salvage the British bank's reputation in the wake of the Libor manipulation scandal.

Barclays agreed to pay $450 million to regulators last week for what authorities said was a "pervasive" attempt for four years to manipulate the London inter-bank offered rate, or Libor.

When banks borrow from each other, they charge each other an interest rate. The Libor is the average of those rates and it is used to establish lending rates on a variety of loans.

"Last week's events have dealt a devastating blow to Barclays' reputation. As chairman, I am the ultimate guardian of the bank's reputation. Accordingly, the buck stops with me and I must acknowledge responsibility by standing aside," Agius said in a statement.

Since the settlement was announced, pressure has been mounting for Barclays to take full responsibility for the bank's actions, The New York Times reported Monday.

Last week, the bank said four top executives, including Chief Executive Officer Robert Diamond, have "volunteered" to forfeit their 2011 bonus compensation.

But several prominent politicians have called for Diamond to step down, as well, the Times said.

The bank said Agius would stay at his job until a replacement could be found. Diamond, meanwhile, is scheduled to testify in Parliament Wednesday.

Diamond has not offered to resign, but said in a letter last week this kind of conduct "has no place in the culture of Barclays."


Apple secures iPad trademark in China

GUANGZHOU, China, July 2 (UPI) -- A Chinese court confirmed a payment of $60 million from U.S. technology giant Apple that grants it the iPad trademark for China.

Apple had paid about $60,000 to a Chinese firm, Proview Technology, some years ago, The New York Times reported Monday.

The deal covered several Asian countries. But when the iPad was launched in China with great success, Proview sued, saying the agreement with Apple did not cover China.

Proview attorney Xie Xianghui said the two companies had reached an agreement and the court had approved it.

The Chinese company is close to liquidation. The $60 million will be used to pay off some of its creditors, the Times said.


Unemployment rates rise in Europe

BRUSSELS, July 2 (UPI) -- The unemployment rate in the 17-member eurozone rose to a record 11.1 percent in May, the European Union's data office said Monday.

The jobless rate in the countries that share the euro as currency rose for the fourth consecutive month, hitting the highest level since the eurozone was created in January 1999.

For the 27-member European Union, the unemployment rate climbed from 10.2 percent in April to 10.3 percent in May, the statistics agency said.

A year earlier, the unemployment rates were 10 percent in the eurozone and 9.5 percent in the European Union.

Eurostat said 24.86 million men and women in the EU were without work, 17.56 million of whom live in the eurozone.

Compared with April, the number of unemployed rose by 151,000 in the European Union and 88,000 in the eurozone.

The unemployment rate rose from 4 percent to 4.1 percent in Austria, but it remains the country in the European Union with the lowest rate, followed by the Netherlands with unemployment rising from 5 percent to 5.1 percent and Luxembourg with unemployment rising to 5.4 percent.

The highest unemployment rate in the EU is in Spain with a rate of 24.6 percent. In Greece, the rate rose to 21.9 percent.

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