Top Finance News

By Leah Schnurr NEW YORK (Reuters) - Wall Street was set for a lower open on Tuesday, the day after hitting a five-month high, pressured by a stronger dollar and lackluster corporate results. Texas Instruments Inc <TXN.N> fell in premarket trade after it warned that fourth-quarter revenue will be hurt by slowing demand, while United States Steel Corp <X.N> tumbled after posting a loss and warning of a fourth-quarter deficit due to the uncertain economy in North America and Europe. Texas Instruments slipped 1.5 percent to $28.55, while U.S. Steel slumped 5.8 percent to $39.80. Equities continued to take their cue from the U.S. dollar, which steadied with investors wary of pushing it lower. The dollar index <.DXY> was up 0.6 percent. Stocks and the greenback have formed an inverse relationship, exacerbated by expectations the Federal Reserve will embark on another round of economic stimulus. Rick Meckler, president of investment firm LibertyView Capital Management in New York, noted the dollar-equities relationship could start to unravel if...

U.S. equity indices retreated in today’s early trading from their highest levels since April, as earnings from a number of companies including Texas Instruments Inc and United States Steel Corp disappointed investors, while data from the housing market also disappointed investors, which weighed down on overall confidence among investors. The S&P/CaseShiller house price index was released for the month of August today, where the index showed that house prices rise less than estimates. Meanwhile, the U.S. dollar gained momentum against its major counterparts, as investors sought less risk. The U.S. dollar index, which is a measure for the dollar’s performance against a basket of currencies including the Euro, the Pound, and the Yen, rose to trade at 77.52, compared with the opening level at 77.16 after recording its highest at 77.60 and its lowest at 77.04. Gold prices Declined to trade at $1330.40 an ounce, compared with the opening level at $1340.75, while oil prices also declined to trade at $82.00 a...

LONDON, Oct 26 (Reuters) - Greek government bonds underperformed their euro zone counterparts on Tuesday, pushing the 10-year yield spread over Bunds to a two-week high after bond fund manager Pimco said the country may default on its debt. The 10-year Greek/German yield spread widened 23 basis points to 730 basis points. "Greece is underperforming across the curve on (the Pimco story) but there's not much flow behind it," a trader said. Media reports quoted Pimco's Chief Executive Officer saying Greece is likely to default within three-year years.   

Oct 26 - (IFR) - USD/KRW traded a tight 1115.3-1122.8 range in Asia on Monday; last at 1116.3. The pair fell sharply just after the open in response to the change in language in the G20 communique (to market determined from market oriented exchange rates) plus a Goldman's note suggest that the Fed may need to do $4trln if the economy goes really bad. Traders in Asia say the BOK intervened below 1117 despite the G20 communique (reportedly to the tune of $500-600mln). The Kospi closed up 1.0%. Overnight the implieds traded an 1116/1120 range on moderate volume before closing in NY at 1119.5/1120.5. We look like getting a reality check today in terms of QE2. Fed member Dudley comments already this morning has seen EUR/USD dip 30 pips as the market pulls back on QE2 expectations. The EUR/USD move should not impact USD/KRW but it will. 

By Ben Berkowitz and Paritosh Bansal NEW YORK (Reuters) - American International Group said on Monday Chief Executive Robert Benmosche has cancer and an unclear prognosis, casting a shadow on the bailed-out insurer as it undergoes a restructuring. AIG did not disclose what kind of cancer Benmosche, 66, has but said he is undergoing "aggressive chemotherapy." He is thought to have been recently diagnosed, although it is not clear exactly when. Benmosche said in a statement he felt fine and that he had started the chemotherapy last week. The insurance company has had four chief executives since mid-2008. That turnover is evidence of the turmoil the company has faced after massive derivative positions forced it to receive more than $180 billion of U.S. government support. In recent months AIG's outlook has improved. In September, the company came up with a plan to pay back the roughly $100 billion that it still owes U.S. taxpayers. On Friday, AIG sold $17.9 billion of shares in AIA, its...

The world’s biggest steelmaker, ArcelorMittal released its third quarter results, showing a 48 percent rise in profits but forecasting a decline in earnings during the final quarter of this year. The company posted a net income of $1.35 billion or $0.89 a share, compared with $910 million or $0.60 a share in the same period a year earlier. Meanwhile, the company stated that fourth-quarter Net income BITDA would total from $1.5 billion – $1.9 billion, which comes short of analysts’ expectations of $2.44 billion. Sales increased to $21.04 billion from $16.17 billion "The business performed towards the lower end of our expectations against a background of seasonally lower volumes, weakening spot prices and higher costs," said CEO Lakshmi N. Mittal. As for the outlook, he said, "remains cautious" because of the higher costs of materials and "demand remains muted, though with some regional differences."  The company’s share (NYSE: MT) rose by $0.29 or 0.83 percent to trade at $35.10 a share.

UK reported a slightly less than anticipated weakening in the housing market for September, where BBA loans for house purchases dropped slightly less than anticipated to 31104 from the previously revised 31781 which was revised to the upside from the original estimate of 31767. The data was though still weak and reflected the decelerating pace of recovery in the sector it was still stronger than the expected decline to 31000. 

Today one of the largest U.S banks M&T Bank Corp reported its 2010 third quarter financial results where it managed to beat analysts' estimations of $1.41 earnings per share as it reported $1.48 EPS. The bank reported net income worth $192 Million higher than both year earlier Net Income of $128 Million and prior quarter of $189 Million.

NEW YORK (Reuters) - Mall owner General Growth Properties Inc <GGP.N>, which was cleared on Thursday to exit bankruptcy, is negotiating to hire Vornado Realty Trust <VNO.N> executive Sandeep Mathrani to be its next chief executive, the Wall Street Journal reported, citing people familiar with the matter. A board committee overseeing the search has focused on Mathrani as its prime candidate after a six-week search but talks with him could yet hit an impasse, the Journal reported, citing those people. General Growth, the No. 2 U.S. mall operator owner after Simon Property Group <SPG.N>, is expected to emerge from bankruptcy around November 8. (Reporting by Phil Wahba; Editing by Richard Chang)

GYEONGJU, South Korea (Reuters) - Finance leaders from the Group of 20 economies will pledge on Saturday to commit themselves to pursue market-determined exchange rates and refrain from "competitive devaluation" of their currencies, a U.S. official said. A communique to be issued at the conclusion of G20 finance ministers' and central bank governors' meeting here will state: "We're all committed to moving toward market determined exchange rates that reflect underlying fundamentals and refrain from competitive devaluation," said the official, who spoke on condition of anonymity. (Reporting by David Lawder; Editing by Tomasz Janowski)