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Jan. 14, 2013 at 2:25 PM   |   Comments

Markets mixed

NEW YORK, Jan. 14 (UPI) -- U.S. stock indexes were mixed Monday.

In early afternoon trading on Wall Street, the Dow Jones industrial average added 19.82 points or 0.15 percent to 13,508.25. The Nasdaq composite index shed 8.50 points or 0.27 percent to 3,117.13. The Standard and Poor's 500 lost 1.92 points or 0.13 percent to 1,470.13.

The 10-year treasury note rose 4/32 to yield 1.857 percent.

Apple Inc. stocks slipped, off 3 percent, on reports that demand for the iPhone 5 was slowing down.

Stocks were higher in Asia and mixed in Europe.

Against the dollar, the euro rose to $1.3366 from Friday's $1.3363. The dollar was higher at 89.37 yen from 89.31 yen.

In London, the FTSE 100 index lost 0.22 percent or 13.72 points to 6,107.86.


UPS drops bid for TNT Express

ATLANTA, Jan. 14 (UPI) -- United Parcel Service said it would drop a bid to buy Dutch shipping firm TNT Express, a $6.9 billion bid that did not win approval from antitrust regulators.

UPS had already agreed to carve up the deal to win approval from the European Commission, the executive arm of the European Union, which had asked for UPS to shed assets to make sure it did not have too strong a position in the shipping industry in Europe.

Among the assets UPS would have sold was TNT's air freight division, which would have been necessary, anyway, as the EU forbids foreign companies to own European airlines.

The New York Times reported Monday UPS had begun negotiating with regulators in November about what it was willing to give up to secure the purchase. UPS had also been willing to sell some assets to DPD, the shipping company 85 percent owned by a division of the French postal service.

"We are extremely disappointed with the European Commission's position. We proposed significant and tangible remedies designed to address the European Commission's concerns with the transaction," UPS chief executive D. Scott Davis said in a statement.

Analysts said only a firm smaller than UPS could step in and secure a deal to buy TNT. Shipping giant DHL, for example, might have the ability to buy TNT, but would run into the same antitrust roadblocks hit by UPS, the analysts said.

"The European Union's decision is very disappointing. It's hard to see the company being bought by anyone else," Stephen Furlong, an analyst at Davy Research in Dublin, told the Times.


Ram 1500, Cadillac ATS win at Detroit show

DETROIT, Jan. 14 (UPI) -- Two U.S. automakers that were bankrupt not long ago have won honors in Detroit for top car and truck of the year.

General Motors won the coveted car of the year award with the Cadillac ATS while Chrysler won bragging rights with the Ram 1500 truck.

It is the type of award around which advertising campaigns pivot. They are awarded to kick off the annual North American International Auto Show in Detroit, which opened to the public Monday.

The awards represent a double-win for Michigan, as both the Cadillac ATS and the Ram 1500 are manufactured in the state, The New York Times reported.

"This is a very meaningful honor for the entire Cadillac team, especially the men and women who build the ATS in Lansing, Michigan, and our dedicated and talented designers and engineers. A car like ATS is the result of incredible commitment and focus. That's the only method for creating a great performing luxury car," said Bob Ferguson, GM vice president for Cadillac.

The awards are decided by a poll of 49 automobile industry journalists and in its 20th year, the group decided to change the truck category to Truck/Utility of the Year.

It is the third win for Ram Trucks, formerly the Dodge Ram truck, which is also produced in Mexico. But it is the first win for the Cadillac, the Times said.


Swatch to buy luxury jewelry brand

BIEL, Switzerland, Jan. 14 (UPI) -- Swiss watchmaker Swatch Group said it had agreed to buy the upscale watch and jewelry business run by Harry Winston Diamond Corp. for $750 million.

After the purchase, which includes a $250 million takeover of debt, Harry Winston Diamond Corp. would adopt the name Dominion Diamond and concentrate on the company's mining business, The New York Times reported Monday.

For Swatch, which recently ended a partnership with Tiffany, the move "is a great fit," said watch industry analyst Rene Weber at Bank Vontobel in Switzerland.

The purchase "fills the gap in the portfolio," he said, referring to Swatch.

Swatch Chairwoman Nayla Hayek, daughter of the company founder, Nicolas Hayek, said the Harry Winston purchase "brilliantly complements the prestige segment" of Swatch.

The deal "will leave us well-equipped to realize upstream opportunities in an environment where cash has become a strategic resource while preserving and expanding our relationship with the downstream diamond business," said Robert Gannicott, chairman and chief executive officer of Harry Winston Diamond Corp.

Topics: Scott Davis
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