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European Stocks, U.S. Index Futures Fall; Fresnillo, Xstrata, Siemens Drop

December 7, 2009

By Adria Cimino Dec. 7 (Bloomberg) — European stocks declined, led by mining companies as metals prices fell. U.S. futures retreated, while Asian shares rose. Fresnillo Plc , the world’s largest primary silver producer, and Xstrata Plc led basic-resources producers lower, sinking at least 1.6 percent. Siemens AG , Europe’s biggest engineering company, slipped 1.9 percent after Morgan Stanley cut its recommendation on the shares. Nutreco Holding NV rose 3.4 percent after ING Groep NV recommended buying the stock. The Dow Jones Stoxx 600, a benchmark for the region, slipped 0.7 percent to 247.29 at 8:17 a.m. in London. The index is valued at about 56 times its companies’ reported earnings, near the highest since June 2003, according to weekly data compiled by Bloomberg. European stocks gained last week following government reports that showed manufacturing in China and Europe expanded and employers in the U.S. cut the fewest jobs in November since the recession began. Record-low interest rates and about $12 trillion in spending by governments worldwide have spurred a 58 percent rally in the Stoxx 600 since March 9 . U.S. stocks rose during the last trading session, lifting the Standard & Poor’s 500 Index to the biggest weekly gain in three weeks. S&P 500 futures slipped 0.4 percent today, while the MSCI Asia Pacific Index added 0.4 percent. Asian Stocks Canon Inc. , the world’s largest maker of cameras and which gets 28 percent of revenue in the Americas, added 3.3 percent in Tokyo as the U.S. jobs report on Dec. 4 buoyed confidence in an economic recovery. Billabong International Ltd. , a clothing maker that gets more than half its revenue in the Americas, added 4.9 percent in Syndey. Fresnillo lost 1.3 percent to 853.5 pence. Xstrata, the world’s fourth-biggest copper supplier, slid 1.5 percent to 1,050 pence. Copper, lead, nickel and silver were among metals declining in London. Siemens retreated 1.9 percent to 62.31 euros. Morgan Stanley cut its recommendation on the shares to “equal weight” from “overweight.” BASF, Randstad BASF SE , the world’s biggest chemical company, will post better-than-expected fourth-quarter results after sales in October and November were “pleasing” and new orders increased, Chief Executive Officer Juergen Hambrecht told the Frankfurter Allgemeine Sonntagszeitung newspaper. BASF shares rose 1.2 percent to 33.2 euros. Randstad Holding NV gained 1.1 percent to 33.18 euros. The second-largest temporary staffing company was raised to “buy” from “hold” at Deutsche Bank AG. Forecasts for the fastest U.S. earnings growth in 15 years are failing to convince options traders that the S&P 500 will extend its biggest rally since the 1930s. S&P 500 options to protect against declines in stocks over the next year cost 22 percent more than one-month contracts, the highest since 1999, data compiled by London-based Barclays Plc and Bloomberg show. The gap shows concern that analyst estimates for record earnings by 2011 may prove exaggerated, endangering an advance that pushed the S&P 500 up 63 percent since March. To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net .

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European Stocks, U.S. Index Futures Fall; Fresnillo, Xstrata, Siemens Drop

December 7, 2009

By Adria Cimino Dec. 7 (Bloomberg) — European stocks declined, led by mining companies as metals prices fell. U.S. futures retreated, while Asian shares rose. Fresnillo Plc , the world’s largest primary silver producer, and Xstrata Plc led basic-resources producers lower, sinking at least 1.6 percent. Siemens AG , Europe’s biggest engineering company, slipped 1.9 percent after Morgan Stanley cut its recommendation on the shares. Nutreco Holding NV rose 3.4 percent after ING Groep NV recommended buying the stock. The Dow Jones Stoxx 600, a benchmark for the region, slipped 0.7 percent to 247.29 at 8:17 a.m. in London. The index is valued at about 56 times its companies’ reported earnings, near the highest since June 2003, according to weekly data compiled by Bloomberg. European stocks gained last week following government reports that showed manufacturing in China and Europe expanded and employers in the U.S. cut the fewest jobs in November since the recession began. Record-low interest rates and about $12 trillion in spending by governments worldwide have spurred a 58 percent rally in the Stoxx 600 since March 9 . U.S. stocks rose during the last trading session, lifting the Standard & Poor’s 500 Index to the biggest weekly gain in three weeks. S&P 500 futures slipped 0.4 percent today, while the MSCI Asia Pacific Index added 0.4 percent. Asian Stocks Canon Inc. , the world’s largest maker of cameras and which gets 28 percent of revenue in the Americas, added 3.3 percent in Tokyo as the U.S. jobs report on Dec. 4 buoyed confidence in an economic recovery. Billabong International Ltd. , a clothing maker that gets more than half its revenue in the Americas, added 4.9 percent in Syndey. Fresnillo lost 1.3 percent to 853.5 pence. Xstrata, the world’s fourth-biggest copper supplier, slid 1.5 percent to 1,050 pence. Copper, lead, nickel and silver were among metals declining in London. Siemens retreated 1.9 percent to 62.31 euros. Morgan Stanley cut its recommendation on the shares to “equal weight” from “overweight.” BASF, Randstad BASF SE , the world’s biggest chemical company, will post better-than-expected fourth-quarter results after sales in October and November were “pleasing” and new orders increased, Chief Executive Officer Juergen Hambrecht told the Frankfurter Allgemeine Sonntagszeitung newspaper. BASF shares rose 1.2 percent to 33.2 euros. Randstad Holding NV gained 1.1 percent to 33.18 euros. The second-largest temporary staffing company was raised to “buy” from “hold” at Deutsche Bank AG. Forecasts for the fastest U.S. earnings growth in 15 years are failing to convince options traders that the S&P 500 will extend its biggest rally since the 1930s. S&P 500 options to protect against declines in stocks over the next year cost 22 percent more than one-month contracts, the highest since 1999, data compiled by London-based Barclays Plc and Bloomberg show. The gap shows concern that analyst estimates for record earnings by 2011 may prove exaggerated, endangering an advance that pushed the S&P 500 up 63 percent since March. To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net .

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Stocks in U.S. Fall as Autodesk, Salesforce.com Outlooks Hurt Tech Shares

November 18, 2009

By Elizabeth Stanton Nov. 18 (Bloomberg) — U.S. stocks retreated, pulling the Standard & Poor’s 500 Index down from a 13-month high, as technology companies slid on profit forecasts at Salesforce.com Inc. and Autodesk Inc. that trailed some analyst estimates. Salesforce.com, the largest seller of Web-based customer- management software, tumbled 5.2 percent for its steepest drop since June. Autodesk, the biggest maker of engineering-design software, tumbled 11 percent after saying job losses in core markets are making the company’s recovery “challenging.” Bank of America Corp. rallied 3.2 percent as John Paulson’s hedge fund said the shares may almost double as writedowns ease. The S&P 500 fell 0.2 percent to 1,108.02 at 10:42 a.m. in New York. The Dow Jones Industrial Average lost 34.46 points, or 0.3 percent, to 10,402.96. The Nasdaq Composite Index declined 0.6 percent to 2,190.48. The S&P 500 has jumped as much as 64 percent from a 12-year low in March as a four-quarter contraction in the world’s largest economy ended. The eight-month rally has pushed the index’s valuation to about 22.3 times its companies’ reported earnings, the highest level since 2002, weekly data compiled by Bloomberg show. U.S. stocks gained for a third session yesterday as a rebound in metal prices boosted commodity producers, overshadowing a smaller-than-forecast increase in industrial production. Autodesk, Salesforce.com Autodesk slid 7.6 percent to $24.94. The biggest maker of engineering-design software projected fourth-quarter profit excluding some items of 24 cents a share at most, trailing the average analyst estimate of 25 cents. Salesforce.com Inc. lost 2.6 percent to $63.94. The largest seller of Internet-based customer-management software forecast fourth-quarter profit of 14 cents to 15 cents a share. Analysts, on average, expected the company to earn 15 cents, according to Bloomberg survey. Bank of America, the largest U.S. lender by assets, jumped 3.2 percent to $16.27. Paulson & Co., the hedge-fund firm run by billionaire John Paulson, said in a quarterly letter to clients that the shares may rise to $29.81 by December 2011. “Banks will have passed the current writedown cycle and have visibility for growth in 2012,” the letter said. Bank of America dropped to $2.53 in February amid concern that the U.S. might seize banks that ran short on capital. While the bank “has risen from when we purchased the stock, we believe considerable upside remains,” the letter said. Pulte Homes Inc. added 4.6 percent to $10.04. The homebuilder that bought competitor Centex Corp. in August was raised to “buy” from “hold” and its share price estimate increased to $12 from $11 at Citigroup Inc., which said the company was “undeservedly out of favor.” Pulte led gains in all 12 shares in a gauge of homebuilders even after Commerce Department figures showed housing starts unexpectedly plunged 11 percent in October as the sales outlook dimmed with the looming expiration of a government tax credit. To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net .

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Opportunity Investment Fund I, LLC Announces a Tender Offer for 100,000 Shares of Common Stock of Piedmont Office Realty Trust, Inc. at $4.60 Per…

November 16, 2009

NEWPORT BEACH, Calif., Nov. 16, 2009 (GLOBE NEWSWIRE) — Opportunity Investment Fund I, LLC, a Delaware limited liability company, today announced the launch of a tender offer whereby it seeks to acquire 100,000 shares of common stock (“Shares”) of Piedmont Office Realty Trust, Inc., a Maryland corporation (the “Corporation”), at a purchase price equal to $4.60 per Share (the “Offer Price”), less the amount of any dividends declared or made with respect to the Shares between November 16, 2009 and December 18, 2009 or such other date to which this offer may be extended (the “Expiration Date”), in cash, without interest, upon the terms and subject to the conditions set forth in a Offer to Purchase and a related Letter of Transmittal, as each may be supplemented or amended from time to time (which together constitute the “Offer” and the “Tender Offer Documents”).

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AB InBev Profit Growth Slows as U.S., Russia Beer Sales Drop; Shares Fall

November 12, 2009

By Andrew Cleary Nov. 12 (Bloomberg) — Anheuser-Busch InBev NV , the world’s largest brewer, reported slowing third-quarter profit growth after cost cuts failed to offset declining beer sales in markets from the U.S. to Europe. Earnings excluding interest, taxes, depreciation and amortization rose 11.9 percent to $3.55 billion on a so-called organic basis, the Leuven, Belgium-based company said today. That matched the average estimate of 12 analysts surveyed by Bloomberg News, and slowed from the 18.5 percent growth reported in the second quarter. Net income beat analysts’ estimates on a one-time gain from asset disposals. The brewer of Stella Artois and Budweiser is grappling with shrinking beer markets in all of its regions except Latin America. Revenue fell 10.4 percent to $9.76 billion, lower than the $10.11 billion estimate of the analysts. The shares fell as much as 4.2 percent, reaching their lowest in a month. “They’re still improving the business, but the rate of improvement is not as fast as we’d been expecting,” Trevor Stirling , an analyst at Sanford C. Bernstein, said in an interview today. “The U.S. was definitely worse than expected.” Stirling has an “outperform” rating on the shares. Shipments in the U.S. fell 5.1 percent in the quarter, while western Europe declined 3.3 percent, led by weakness in Germany and Belgium. The company expects an “improved” volume performance in both markets in the fourth quarter, Chief Financial Officer Felipe Dutra said on a conference call. Shares Fall The shares fell 65 cents, or 2 percent, to 31.45 euros at 9:10 a.m. in Brussels, extending losses over the two previous days stemming from concern today’s results would disappoint.. The shares have still more than tripled from their low a year ago as the company sold assets and new stock to repay debt. The company’s overall 3.3 percent decline in beer sales by volume accelerated from the second quarter’s 1.5 percent drop, as market share gains in Brazil and Argentina were eroded by lower sales in the U.S. and Europe. The performance of AB InBev’s so-called focus brands, which represent two thirds of sales, suffered in the period, with volumes rising 0.4 percent, slowing from the second quarter’s 1.5 percent pace. “Eventually you’ve got to grow the top line; you can’t go on cutting costs forever,” Andrew Holland , an analyst at Evolution Securities Ltd. in London, said in an interview yesterday. “They’ve had five years of cutting their way to greatness and probably only another year left.” Holland has a “sell” rating on the shares. Russian Plunge To help restore growth, the company said it’s releasing two new beers in the U.S.: Bud Light Golden Wheat and Select 55. Investment in sales and marketing will rise “significantly” in the final quarter of the year to support the new brands and the push behind Budweiser globally, Dutra said. Central and eastern Europe volumes fell 16.8 percent, driven by Russia, where “difficult market conditions” saw sales plummet 20.4 percent. That market may suffer further as “it looks much more likely than not” that Russia will raise beer taxes, Dutra said. Rival SABMiller Plc last month said beer sales by volume fell 1 percent in the six months through September, and reported a 12 percent decline in Russian volumes. Savings Target AB InBev has slashed marketing, administration and production expenses since last year’s takeover of Anheuser-Busch by the former InBev, and cut $265 million of expenses in the third quarter, bringing year-to-date savings to $875 million. The company is targeting $1 billion in savings this year and $2.25 billion within the first three years of the acquisition. Dutra today signaled there may be room to expand that target as the company rolls out Anheuser brands such as Budweiser into new markets. “We can now focus all of our efforts on growing our core business, including realizing top line synergy opportunities not considered in our $2.25 billion synergy commitment,” Dutra said in the statement. A “better than expected” reduction in selling expenses, greater procurement power, and falling raw material costs helped the ebitda margin rise 3.9 percentage points to 36.4 percent. The company also drove through “selective price increases” to help counter slipping volumes. Net income for the quarter was $1.55 billion, helped by a $436 million one-time gain from the sale of its South Korean unit. That beat the $1.39 billion average of eight estimates compiled by Bloomberg. In August, AB InBev said earnings growth would be “significantly less” in the latter half of the year, with the third quarter to be an “especially challenging” comparison with the prior-year period, when Bud Light Lime was released. AB InBev’s Latin American unit, Sao Paulo-based Cia. de Bebidas das Americas, also reported figures today. The company, known as AmBev, said third-quarter profit rose 5.8 percent, bolstered by beer sales in Brazil and price increases. To contact the reporter on this story: Andrew Cleary in London at acleary7@bloomberg.net .

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Asian Stocks Rise on Commodity Prices, Brokerage Upgrades; Axa Asia Gains

November 9, 2009

By Patrick Rial and Akiko Ikeda Nov. 10 (Bloomberg) — Asian stocks climbed, lifting the MSCI Asia Pacific Index for a third day, as a rally in commodities boosted materials producers and brokerages upgraded Australian financial shares. Newcrest Mining Ltd. , Australia’s biggest gold producer, added 1 percent as bullion advanced to a record. Commonwealth Bank of Australia rose 1.3 percent after UBS AG recommended buying the shares and Axa Asia Pacific Holdings Ltd. gained 2.6 percent after Credit Suisse Group AG lifted the stock to “neutral.” Hyundai Motor Co. , South Korea’s largest automaker, rallied 3.4 percent after China’s auto sales climbed. “A rise in gold futures will lure investors and gold- related stocks will be bought,” said Fumiyuki Nakanishi , a strategist at Tokyo-based SMBC Friend Securities Co. The MSCI Asia Pacific Index gained 0.8 percent to 118.53 as of 10:18 a.m. in Tokyo, set to close at the highest level since Oct. 26. Japan’s Nikkei 225 Stock Average rose 1.4 percent to 9,950.19. South Korea’s Kospi Index added 1.2 percent, while Australia’s S&P/ASX 200 Index advanced 1.2 percent. Futures on the Standard & Poor’s 500 Index were little changed. The gauge advanced 2.2 percent yesterday for its sixth straight increase as the Group of 20 nations pledged to maintain stimulus measures until economic recoveries take hold. The MSCI Asia Pacific Index has climbed 68 percent from a more than five-year low on March 9, exceeding gains by the S&P 500 and Europe’s Dow Jones Stoxx 600 Index. Stocks in the benchmark are valued at 22 times estimated earnings, compared with 17 times for the S&P and 15 times for the Stoxx. Gold Rises Newcrest added 1 percent to A$35.65. Fortescue Metals Group Ltd., Australia’s third-largest iron ore producer, surged 3.6 percent to A$4.04. Mitsui & Co. , which generates more than half its profits from commodities dealing, climbed 2.8 percent to 1,201 yen. Gold futures for December delivery added 0.2 percent to $1,104 an ounce in New York after reaching a record $1,111.70 yesterday. Crude oil climbed 2.6 percent to $79.43 a barrel. The London Metals Index, a measure of six metals including copper and zinc, gained 0.9 percent. Commonwealth Bank rose 1.3 percent to A$55.82. The nation’s biggest lender was raised to “buy” from “neutral” at UBS. The company said yesterday first-quarter unaudited cash profit totaled about A$1.4 billion ($1.3 billion). Axa Asia Pacific , which yesterday rejected an unsolicited $10 billion takeover bid from parent Axa SA and wealth manager AMP Ltd., gained 2.6 percent to A$5.85. Credit Suisse lifted the shares to “neutral” from “underperform.” Hyundai Motor, which cited growth in China for its record quarterly profit in the three months to Sept. 30, gained 3.4 percent to 106,000 won. NSK Ltd. , a maker of bearings for autos, added 2.7 percent to 582 yen. JTEKT Corp., a maker of power steering, jumped 2.7 percent to 989 yen. China’s passenger-car sales rose 76 percent last month as economic growth and government stimulus measures spurred demand in the world’s largest auto market. Sales climbed to 946,400 units, the China Association of Automobile Manufacturers said. To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net .

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Video: Market Close 10.26

October 26, 2009

S&P Falls 1.1%; Dow Falls 1%; Nasdaq Falls Less Than 1%; KBW Bank Index Falls Nearly 4%; S&P Homebuilding Index Falls 3.4%; RadioShack Earnings Send Shares Up Around 16% (Bloomberg News)

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Code Green Networks Announces New Channel Director to Accelerate and Expand Partner Program

October 19, 2009

Empower Partners to Capture Rapidly Growing Data Loss Prevention Market Shares

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Video: Market Close 10.16

October 16, 2009

All Three Major Indexes Each Fall Less Than 1%; Bank of America Shares Fall 4.6% After Earnings Miss Estimates; Advanced Micro and IBM Both Give Cautious Outlooks in Earnings Reports, Shares Fall in Reaction; Estee Lauder Shares Rise 5%, Positive Outlook for Holiday Sales; Haliburton Reports Positive 3Q Earnings; 65% of Technology Companies and 71% of Financial Companies Beating Top Line of Analysts’ 3Q Estimates (Bloomberg News)

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European Stocks Are Little Changed, Sainsbury Declines; Asian Shares Rise

October 7, 2009

By Adria Cimino Oct. 7 (Bloomberg) — European stocks were little changed after the Dow Jones Stoxx 600 Index’s biggest gain in six weeks. U.S. futures rose before Alcoa Inc. kicks off the earnings reporting season, while Asian shares climbed as gold’s surge to a record lifted mining companies. J Sainsbury Plc sank 2.3 percent as the U.K.’s third- biggest supermarket owner reported a slowdown in same-store sales growth. Whitbread Plc, the operator of the Premier Inn budget-hotel chain, dropped 1.4 percent as Citigroup Inc. cut its recommendations on the shares. ING Groep NV rose 1.5 percent after Julius Baer Group Ltd. agreed to buy its Geneva-based wealth management business. Europe’s Stoxx 600 added 0.1 percent to 241.49 at 8:22 a.m. in London, erasing an earlier decline of as much as 0.5 percent. The measure has retreated 1.9 percent since this year’s high on Sept. 17 as U.S. unemployment, manufacturing and consumer confidence data missed economists’ forecasts, fueling concern the global economic recovery may not be robust. The MSCI Asia Pacific Index increased 1.7 percent today, led by Newcrest Mining Ltd., Australia’s largest gold producer. Futures on the Standard & Poor’s 500 Index rose 0.4 percent, indicating the benchmark measure for U.S. equities may climb for a third day on speculation earnings will top estimates. Alcoa, the biggest U.S. aluminum producer, is scheduled to release results after the market closes, the first company in the Dow Jones Industrial Average to report third-quarter results. The shares rose 0.9 percent to $14.01 in German trading. Alcoa Earnings Alcoa is expected to post a loss of 9 cents a share compared with a profit of 37 cents a year earlier, according to analysts’ estimates compiled by Bloomberg. S&P 500 companies will report a ninth straight quarter of declining profits before returning to growth in the final three months of the year, the forecasts show. Sainsbury declined 2.3 percent to 315.5 pence. Sales at outlets open at least a year rose 5.4 percent, excluding gasoline and value-added tax, in the fiscal second quarter, the retailer said. That compared with the first quarter’s 7.8 percent gain and the 5.5 percent median estimate of nine analysts surveyed by Bloomberg News. Whitbread dropped 1.4 percent to 1,205 pence after Citigroup downgraded the shares to “hold.” ING increased 2.3 percent to 11.94 euros. Julius Baer, the Swiss private bank that split from its asset management unit this month, agreed to buy ING’s Geneva-based wealth management business for 520 million Swiss francs ($506 million). The purchase will increase Julius Baer’s managed client assets by about 10 percent, giving it more than 160 billion francs at the end of August. Baer is paying with excess capital and expects the acquisition to have no effect on earnings per share in 2010, the company said. To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net .

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Europe, U.S. Stock Futures Rise; Asian Shares Drop After Roubini Forecast

October 5, 2009

By Adria Cimino Oct. 5 (Bloomberg) — European and U.S. stock-index futures rose as speculation a report will show U.S. service industries stabilized overshadowed Nouriel Roubini’s forecast that equity markets may drop in the coming months. Asian shares declined. Insurance stocks may climb after HSBC Holdings Plc lifted its recommendations on Hannover Re, Allianz SE and Aegon NV . Iberia Lineas Aereas de Espana SA, Spain’s biggest airline, and Bouygues SA may advance after Bank of America Corp. advised investors to buy the shares. Volkswagen AG may slip after Automobilwoche said that the company expects German car sales to contract by almost 20 percent next year. Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark measure for the euro region, added 0.2 percent at 7:27 a.m. in London. The U.K.’s FTSE 100 Index may increase 7, according to Cantor Index, a betting firm. “After what can best be described as a poor finish to the week, some European markets are set to move slightly higher at the open but an air of caution looks set to prevail,” Ben Potter , a research analyst at IG Markets in Melbourne, wrote in a note. Futures on the Standard & Poor’s 500 Index gained 0.3 percent before a report that may show services industries, the largest share of the U.S. economy, stabilized in September after contracting for almost a year. The Institute for Supply Management’s index of non- manufacturing businesses, which reflects almost 90 percent of the economy, rose to 50, according to the median of 64 forecasts in a Bloomberg News survey. Fifty is the dividing line between expansion and contraction. Two-Week Slump The S&P 500 and Europe’s Stoxx 600 have slumped for two straight weeks as data on U.S. unemployment, manufacturing and consumer confidence missed economists’ forecasts, fueling concern that the global economic recovery may not be robust. New York University Professor Roubini, who predicted the financial crisis, said stock and commodity markets may drop in coming months as the gradual pace of the economic recovery disappoints investors. The comments helped send the MSCI Asia Pacific Index down 0.8 percent today. “Markets have gone up too much, too soon, too fast,” Roubini said in an interview in Istanbul on Oct. 3. “I see the risk of a correction, especially when the markets now realize that the recovery is not rapid and V-shaped, but more like U- shaped. That might be in the fourth quarter or the first quarter of next year.” ‘Quite Reduced’ HSBC Chief Executive Officer Michael Geoghegan said there may be a second global economic slump and as a result doesn’t want the bank to grow too fast, the Financial Times reported, citing an interview with him. Geoghegan said he wasn’t convinced that the worst was over and that the “reality is that profits will be quite reduced”, the FT reported. Alcoa Inc. kicks off the third-quarter earnings season in the U.S. this week, while investors will also watch quarterly reports in Europe at companies from Tesco Plc to Banco Espanol de Credito SA. Hannover Re, Germany’s second-biggest reinsurer, was lifted to “overweight” from “neutral” at HSBC. Allianz, Europe’s largest insurer by market value, and Aegon, the Dutch owner of U.S. insurer Transamerica Corp., were also raised to “overweight” from “neutral.” Iberia may gain. Bank of America raised its recommendation on the shares to “buy” from “neutral.” Separately, the board of Iberia wants a decision on the merger with British Airways Plc, Europe’s third-largest airline, to be reached quickly, Cinco Dias reported. Bouygues was upgraded to “buy” from “underperform” at Bank of America. Volkswagen, Bill Gross Volkswagen, Europe’s biggest carmaker, expects German car sales to contract by almost 20 percent next year after the German “cash-for-clunkers” program expired, Automobilwoche reported, citing an interview with Christian Klingler, sales chief for the VW brand. Wall Street projections for the fastest U.S. profit growth in two decades are putting some of the biggest equity investors at odds with Bill Gross . Money managers are betting that more than two years of declining earnings, the longest stretch since the Great Depression, will end in 2010 when net income rises 26 percent before expanding 22 percent in 2011, according to data compiled by Bloomberg. Gross, who oversees the world’s biggest bond fund at Pacific Investment Management Co., says the economy won’t grow fast enough to sustain the steepest rally since the 1930s and equity returns will be limited to 5 percent a year. To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net .

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Apartment (REIT) Hunting

September 25, 2009

currently paying for stocks? That's the question on traders' minds these days, and it certainly applies to real estate companies, which have seen their shares roughly double since the market's financial crisis nadir in March, easily trumping the S&P

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UPDATE 1-Comstock Homebuilding settles lawsuit; shares rise

September 22, 2009

* Eliminates $5.2 mln of debt * To record gain on troubled debt restructuring * Shares rise as much as 16 pct Sept 22 (Reuters) – Real estate company Comstock Homebuilding Cos Inc (CHCI.O) said

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Video: Market Close 9.11

September 11, 2009

All Three Major Indexes Each Fall Less Than 1%; Quadrangle Capital to Shut Down London Office to Increase Asia Focus; FedEx Boosts 1Q Outlook; AIG Shares Urged to Be Sold by Three Different Firms; Coca-Cola Leads DJIA as Best Performer, No Specific News (Bloomberg News)

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Video: Market Close 9.4

September 4, 2009

S&P Rises 1.3%; Dow Rises 1%; Nasdaq Rises 1.8%; Industrials Best Performer of the Day; Apple Shares Rise Ahead of Next Week’s Event, May Reveal New Product; Abercrombie & Fitch Cut to “Sell”, Shares Fall 2.6% (Bloomberg News)

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Video: U.S. Stock Market Plunges

August 28, 2009

Stocks fall as investors unload some of the shares that they buy to protect their portfolios. (Taking Stock)

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Video: Chart of the Day – Selling Buffett’s Shares Slowly

August 28, 2009

July-August: Gates Foundation Sells Buffet’s Shares Slowly (Bloomberg News)

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L’Oreal Jumps Most in Nine Months on Smaller-Than-Estimated Drop in Profit

August 28, 2009

By Keith Campbell Aug. 28 (Bloomberg) — L’Oreal SA , the world’s largest cosmetics maker, rose the most in nine months in Paris trading after posting a smaller-than-estimated earnings decline and forecasting a recovery, prompting upgrades from three banks. Operating profit fell 8.3 percent to 1.37 billion euros ($1.96 billion) in the six months through June, the Paris-based company said yesterday after markets closed, above the 1.27 billion-euro median analyst estimate. The maker of Armani makeup and Lancome scents said sales improved in July and will keep gradually improving throughout the second half. Oddo Securities, Bank of America-Merrill Lynch and UBS AG all upgraded L’Oreal today, and the shares jumped as much as 10 percent, the most since November. The stock plunged 36 percent in 2008 as U.S. department stores pared inventories. “We now consider the risk of further downside to the numbers as very remote,” UBS analysts including Eva Quiroga said in an e-mailed note this morning, raising the stock to “neutral” from the previous “sell” recommendation. L’Oreal’s profitability shrank less than the UBS analysts expected. L’Oreal stock rose 6 euros, or 9.3 percent, to 70.69 euros at 9:05 a.m. in Paris trading today. It’s up about 12 percent so far this year. Merrill analysts including Antoine Colonna raised L’Oreal to “buy” from “neutral” today, saying sentiment on the stock had been “excessively negative.” Oddo’s Vanessa Laurence raised the shares to “buy” from “add,” saying investors had underestimated the benefits from L’Oreal’s cost-cutting plan. To contact the reporter on this story: Ladka Bauerova in Paris at lbauerova@bloomberg.net .

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Stocks in U.S. Fall as Confidence Drop Adds to Speculation Rally Overdone

August 14, 2009

By Whitney Kisling Aug. 14 (Bloomberg) — U.S. stocks slid, erasing this week’s gain in the Standard & Poor’s 500 Index , as lower-than- estimated consumer confidence added to concern a five-month rally has outpaced prospects for the economy. Boeing Co. , the world’s second-largest commercial airplane manufacturer, led declines in the Dow Jones Industrial Average after saying it found flaws in 23 of its 787 Dreamliners. Alcoa Inc., 3M Co. and Caterpillar Inc. also slumped as all 10 industries in the S&P 500 posted declines . J.C. Penney Co. retreated after its forecast trailed estimates. “A lot of people think the market has come up more than enough and it needs to rest,” said Charles Knott , chief investment officer at Knott Capital Management in Exton, Pennsylvania, who oversees about $550 million. “We’ve got a pretty sobering outlook and are concerned about the economy on a long-term basis. We think there’s neither the willpower nor the means to fully finance that type of V-shape recovery.” The S&P 500 tumbled 1.5 percent to 997.28 at 2:21 p.m. in New York, heading for its first weekly drop in five and its biggest daily decline since July 7. The Dow industrials lost 140.87 points, or 1.5 percent, to 9,257.32. U.S. stocks are “dramatically overpriced” because the fallout from the financial crisis will continue to hurt consumer spending, said David Tice , Federated Investors Inc.’s chief portfolio strategist for bear markets. Tice, who predicts that the S&P 500 will eventually slump to 400, said he would add to short positions if the market goes much higher. ‘Need to Be Realistic’ “I’d love for prosperity to return, unfortunately I think you need to be realistic and it takes time to work off these excesses” from a bubble in credit markets, Tice said in an interview with Bloomberg Television. Equities declined even after industrial production in the U.S. rose for the first time in nine months after mid-year retooling at automakers and as a federal “cash-for-clunkers” program fueled demand for cars. The 0.5 percent increase in output at manufacturers, mines and utilities was more than economists forecast, Federal Reserve figures showed. A 50 percent rebound from a 12-year low on March 9 left the S&P 500 trading at 18.6 times the profits of its companies on Aug. 7, the highest valuation since 2004, according to weekly Bloomberg data. Stocks gained yesterday after investor John Paulson ’s hedge fund bought stakes in banks, helping offset an unexpected slump in retail sales. Earnings Season Per-share earnings topped analysts’ estimates by 10 percent on average for the companies in the S&P 500 that have released results since June 17, according to data compiled by Bloomberg. Profits slumped about 30 percent in the period, a record eighth straight quarter of falling earnings. Instead of a so-called New Normal of subdued growth, the U.S. may be heading for a robust recovery. The worst recession since the 1930s has created a reservoir of demand that will buoy the economy, say a growing number of economists led by James Glassman at JPMorgan Chase & Co., former Fed Governor Laurence Meyer and Stephen Stanley at RBS Securities Inc. Boeing said it stopped work more than a month ago on two sections for the 787 Dreamliner after flaws were found. The 787 was almost two years behind its initial May 2008 first-delivery target before the latest delay. Shares of the second-biggest defense contractor fell 4.2 percent to $44.65, the biggest decline in more than a month. J.C. Penney slid the most since February, losing 6.3 percent to $31.23, after the third-largest U.S. department-store chain gave a third-quarter forecast trailing analysts’ estimates. Sales continue to decline, the company said. Financials Slump Financial shares , which have more than doubled since the S&P 500 hit a 12-year low of 676.53 on March 9, declined 1.6 percent as a group today. Genworth Financial Inc. slid the most in the S&P 500 after Citigroup cut the company to “sell” from “hold.” The shares , which have almost tripled this year, declined 8.1 percent to $8.04. Alcoa, the largest U.S. aluminum producer, dropped 3.8 percent to $13.19. 3M, the maker of 55,000 products, slid 2.4 percent. The Reuters/Jefferies CRB Index of 19 commodities declined 1.6 percent, bringing its weekly loss to about 1.4 percent. Crude oil fell as much as 4.6 percent to $67.29 a barrel. National Oilwell Varco Inc., the world’s largest maker of oilfield equipment, dropped 4.5 percent to $36.57, the biggest slide in more than a month. All 40 members of the S&P 500 energy group declined. Equity Residential and Barnes & Noble Inc. dropped after analysts downgraded the shares. UBS AG cut Equity Residential, the largest publicly traded owner of apartment complexes, to “sell” from “neutral,” sending the shares down 3.6 percent to $26.84. Credit Suisse Group AG lowered Barnes & Noble to “underperform,” citing the company’s decision to buy back a unit as an increased risk. The shares fell 9.7 percent to $20.75, their worst loss this year. To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net .

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Stocks in Europe Decline as Daimler, Lloyds Retreat; Asian Shares Advance

August 10, 2009

By Adam Haigh Aug. 10 (Bloomberg) — European stocks fell after four straight weeks of gains left the Dow Jones Stoxx 600 Index valued at the most expensive relative to earnings in almost six years. Asian shares rose, while U.S. index futures fluctuated. Daimler AG , the world’s second-biggest maker of luxury cars, dropped 3.1 percent after Morgan Stanley recommended selling the shares. Lloyds Banking Group Plc decreased 4.9 percent as the Times newspaper said the U.K. lender may seek to raise as much as 25 billion pounds ($41.7 billion) selling shares. The Stoxx 600 declined 0.5 percent at 8:10 a.m. in London. The regional gauge has rallied 45 percent since March 9 as companies from GlaxoSmithKline Plc to Goldman Sachs Group Inc. reported better-than-estimated earnings. The measure is valued at 40.1 times the profits of its companies, the highest level since September 2003, weekly data compiled by Bloomberg show. “I don’t think any economic recovery yet is written in stone,” said Robert Prugue , head of Lazard Asset Management in Sydney, which oversees about $98 billion in assets. “Being a little bit too optimistic without being truly pragmatic about the conditions yet to uncover is perhaps bordering from irrational exuberance to irresponsible exuberance,” he told Bloomberg Television. The MSCI Asia Pacific Index climbed 1 percent today as Japanese machinery orders increased, spurring speculation the world’s second-largest economy is emerging from its recession. U.S. Futures, VIX Standard & Poor’s 500 Index futures expiring in September dropped 0.1 percent after four straight weeks of advances pushed the benchmark gauge for U.S. equities above 1,000 for the first time since November. The U.S. economy may be on the cusp of a recovery and the impact of the nation’s stimulus plan should increase this quarter, according to Laura Tyson , an adviser to President Barack Obama . “We may have hit stability, we may be in the beginning of an upturn” based on the latest economic data, Tyson, a member of the White House’s Economic Recovery Advisory Board, said yesterday during an interview in Kuala Lumpur. Nobel Prize- winning economist Paul Krugman said the deepest slump since the Great Depression may be ending. Still, options traders are increasing bets that the steepest rally in the S&P 500 since the 1930s won’t survive September, historically the worst month for U.S. equities. Traders are betting the VIX, a gauge of expected stock swings, will increase 13 percent in the next five weeks, according to futures prices compiled by Bloomberg. Daimler, Lloyds Daimler declined 3.1 percent to 32.53 euros. Morgan Stanley downgraded the shares to “underweight” from “overweight.” Lloyds fell 4.9 percent to 97 pence. The company’s new chairman, Win Bischoff , is seeking to raise between 15 billion pounds and 25 billion pounds in a share sale as a part of a plan to reduce the bank’s exposure to the U.K.’s asset protection plan, the London-based Times reported, without saying where it got the information. Lloyds is considering reducing the amount of assets it will put in the toxic-debt plan by as much as half in order to reduce the fees it will have to pay, the Times reported. The government may back a share sale and has agreed in principle to the bank’s use of the toxic-asset plan, though contracts have still to be signed, the newspaper said. Bourbon SA added 5.5 percent to 31.43 euros. The owner of the world’s biggest fleet of supply ships for deep-water oil exploration said second-quarter sales increased 9.7 percent to 243.5 million euros ($345.5 million). U.K. companies are having an easier time getting access to loans in a sign the credit crunch is abating, the Confederation of British Industry said. A net 18 percent in a survey of 73 firms said credit availability improved in the past three months, compared with a net 20 percent reporting a deterioration in May, Britain’s biggest business lobby said today in London. To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net

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Publicis Will Acquire Razorfish Ad Agency From Microsoft for $530 Million

August 9, 2009

By Gregory Viscusi Aug. 9 (Bloomberg) — Publicis Groupe SA , owner of the Saatchi & Saatchi ad firm, said it is buying Microsoft Corp. ’s Razorfish advertising agency for $530 million in cash and stock to expand in Internet advertising. Razorfish will continue to operate under its own name, and will remain Microsoft’s “agency of record” for online advertising and marketing, the companies said in a joint statement. In buying Razorfish, Publicis expands its digital-ad business as demand slows for traditional print and television campaigns. The Paris-based company said last month that first- half revenue fell, hurt by slackening ad spending and the bankruptcy of its client General Motors Corp. “The purchase of Razorfish is a new step in our strategic plan to be the unquestionable leader in digital communication,” Publicis Chief Executive Officer Maurice Levy said in a statement. “Once this acquisition is complete, about a quarter of our revenue will come from digital communication and our ability to grow and conquer will be reinforced.” Publicis will give Microsoft 6.5 million of its shares, which have a current market value of 162 million euros ($231 million), with the remainder paid in cash. The value of the shares will be based on the average price in the 20 trading days leading up to the eighth day before the transaction closes. Publicis said it already owns the shares and won’t be issuing new ones. Microsoft will own 3 percent of the French company after the deal is closed, which is expected in the fourth quarter, Levy said today in a conference call. Razorfish Clients Redmond, Washington-based Microsoft acquired Razorfish, which designs digital adverting campaigns, as part of its $6 billion purchase of AQuantive Inc. in 2007. Razorfish, whose clients include McDonald’s Corp. and Levi Strauss & Co., also works with Microsoft rivals Google Inc. and Yahoo! Inc. In 2008, Razorfish had revenue of about $380 million, Levy said. “We are paying between 1.4 and 1.5 times sales, which in the digital world is reasonable,” Levy said. Razorfish employs about 2,000 people, and gets 75 percent of its revenue from the U.S. It also has offices in China, France, Germany, Spain, Japan, Australia and Britain. Chief executive Bob Lord will stay with the company, the statement said. Publicis expects to now make only small acquisitions in the two areas it wants to expand in, which are digital advertising and developing countries, Levy said. “Don’t expect any acquisitions of this magnitude in the short or medium term,” he said on the call. Last year, Publicis bought the Performics search-marketing business from Google , the most popular Internet search engine, for an undisclosed amount. Publicis paid $1.3 billion in 2007 for online agency Digitas Inc. Microsoft rose 10 cents to $23.56 on the Nasdaq Stock Market Aug. 7, giving it a market value of $210 billion. Publicis fell 1.7 percent to 24.90 euros in Paris trading, for a value of 4.9 billion euros ($7 billion). To contact the reporter on this story: Gregory Viscusi in Paris at gviscusi@bloomberg.net .

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Publicis Will Acquire Razorfish Ad Agency From Microsoft for $530 Million

August 9, 2009

By Gregory Viscusi Aug. 9 (Bloomberg) — Publicis Groupe SA , owner of the Saatchi & Saatchi ad firm, said it is buying Microsoft Corp. ’s Razorfish advertising agency for $530 million in cash and stock to expand in Internet advertising. Razorfish will continue to operate under its own name, and will remain Microsoft’s “agency of record” for online advertising and marketing, the companies said in a joint statement. In buying Razorfish, Publicis expands its digital-ad business as demand slows for traditional print and television campaigns. The Paris-based company said last month that first- half revenue fell, hurt by slackening ad spending and the bankruptcy of its client General Motors Corp. “The purchase of Razorfish is a new step in our strategic plan to be the unquestionable leader in digital communication,” Publicis Chief Executive Officer Maurice Levy said in a statement. “Once this acquisition is complete, about a quarter of our revenue will come from digital communication and our ability to grow and conquer will be reinforced.” Publicis will give Microsoft 6.5 million of its shares, which have a current market value of 162 million euros ($231 million), with the remainder paid in cash. The value of the shares will be based on the average price in the 20 trading days leading up to the eighth day before the transaction closes. Publicis said it already owns the shares and won’t be issuing new ones. Microsoft will own 3 percent of the French company after the deal is closed, which is expected in the fourth quarter, Levy said today in a conference call. Razorfish Clients Redmond, Washington-based Microsoft acquired Razorfish, which designs digital adverting campaigns, as part of its $6 billion purchase of AQuantive Inc. in 2007. Razorfish, whose clients include McDonald’s Corp. and Levi Strauss & Co., also works with Microsoft rivals Google Inc. and Yahoo! Inc. In 2008, Razorfish had revenue of about $380 million, Levy said. “We are paying between 1.4 and 1.5 times sales, which in the digital world is reasonable,” Levy said. Razorfish employs about 2,000 people, and gets 75 percent of its revenue from the U.S. It also has offices in China, France, Germany, Spain, Japan, Australia and Britain. Chief executive Bob Lord will stay with the company, the statement said. Publicis expects to now make only small acquisitions in the two areas it wants to expand in, which are digital advertising and developing countries, Levy said. “Don’t expect any acquisitions of this magnitude in the short or medium term,” he said on the call. Last year, Publicis bought the Performics search-marketing business from Google , the most popular Internet search engine, for an undisclosed amount. Publicis paid $1.3 billion in 2007 for online agency Digitas Inc. Microsoft rose 10 cents to $23.56 on the Nasdaq Stock Market Aug. 7, giving it a market value of $210 billion. Publicis fell 1.7 percent to 24.90 euros in Paris trading, for a value of 4.9 billion euros ($7 billion). To contact the reporter on this story: Gregory Viscusi in Paris at gviscusi@bloomberg.net .

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Stocks in U.S. Gain, Treasuries Drop After Better-Than-Estimated Jobs Data

August 7, 2009

By Whitney Kisling Aug. 7 (Bloomberg) — U.S. stocks jumped after the unemployment rate fell for the first time since April 2008, bolstering speculation that a recovering economy justifies the steepest rally in equities in seven decades. Commodities and the dollar also advanced, while Treasuries retreated. American Express Co. , Alcoa Inc. and Walt Disney Co. added at least 1.3 percent after the Labor Department said the nation lost 247,000 jobs last month, 78,000 fewer than economists projected. The jobless rate fell to 9.4 percent from 9.5 percent. American International Group Inc. rallied 11 percent as its first profit since 2007 topped estimates. CBS Corp. and D.R. Horton Inc. climbed on analyst upgrades. “The market has a laser focus on the economy and on jobs, so any improvement in that leads to an improvement in the stock market,” said David Katz , who oversees $1.1 billion as chief investment officer of Matrix Asset Advisors in New York. “The worst is behind for the economy, and we’re on the mend.” The Standard & Poor’s 500 Index added 1 percent to a 10- month high of 1,006.89 at 10:34 a.m. in New York, poised for a fourth straight weekly advance. The Dow Jones Industrial Average climbed 97.34 points, or 1.1 percent, to 9,353.6. The S&P 500 rallied 47 percent from March 9 through yesterday, the steepest surge over the same number of days since the Great Depression. In addition to today’s jobs data, reports this month showed better-than-estimated sales of cars and existing homes and a contraction in manufacturing that was smaller than economists forecast. The Conference Board’s index of leading economic indicators has risen three straight months. Earnings Watch While profits at S&P 500 companies are falling for a record eighth straight quarter, results have surpassed projections by an average of 10 percent in the current season. Per-share earnings have beaten estimates at three-quarters of the 446 companies in the S&P 500 that released second-quarter results since June 17, according to data compiled by Bloomberg. “The economic news is getting less grim, and earnings estimates are ratcheting up,” said Michelle Clayman , chief investment officer at New Amsterdam Partners in New York, which manages $3 billion. “The market could go higher from here, and if the recovery is even sharper, there could be more upside.” The S&P 500 and the Dow have gained at least 6.2 percent so far in 2009 as better-than-expected earnings and improving economic data suggest the worst recession since the 1930s may be subsiding and investors regain some confidence in U.S. equities. The S&P 500 and Dow are up about 2 percent over the past five days, both poised for the fourth straight week of increases. AIG Doubles AIG climbed 11 percent to $25.05 and has almost doubled over the past week. The insurer bailed out by the U.S. government reported second-quarter earnings per share of $2.57 on an adjusted basis, beating the $1.50 average analyst estimate. Shares of AIG climbed 63 percent on Aug. 5, and rose 2.4 percent yesterday before results were released. Nvidia Corp. added 6 percent to $13.91 after the second- biggest maker of graphics chips forecast sales of as much as $830.9 million in the third quarter, compared with an average analyst estimate of $757 million. D.R. Horton , the largest U.S. homebuilder by sales, gained 5 percent to $13.17 as Goldman Sachs Group Inc. added the shares to its “conviction buy” list. American Express, the best performing stock in the Dow this year with a 76 percent rally, climbed 4 percent to $32.57. Disney, the biggest media company in the world, rallied 2 percent to $25.87. Alcoa, the largest U.S. aluminum producer, rose 1.3 percent to $12.96. Jobs Data Eight of 10 industry groups in the S&P 500 advanced after the pace of job losses slowed more than forecast, the clearest sign yet that the worst recession since the Great Depression is easing. Economists at Goldman Sachs Group Inc. and Deutsche Bank Securities Inc. yesterday changed their forecasts for a smaller drop in payrolls, saying the world’s largest economy and the labor market are showing some signs of improvements. Goldman Sachs lowered the forecast to 250,000, almost matching today’s report. Chiquita Brands International Inc. rallied the most since May 1, adding 17 percent to $14.90, after the seller of bananas and other produce posted second-quarter earnings excluding some items of $2.08 a share, more than twice the average analyst estimate, according to Bloomberg data. CBS, the only major broadcast network to gain viewers last season, surged the most in the S&P 500. The stock added 20 percent to $10.21 after earnings topped analysts’ estimates and Benchmark Co. raised the shares to “buy” from “hold,” saying the stock is “well positioned to benefit from the improving economic outlook.” Leap, PMI Slide Leap Wireless International Inc., the pay-as-you-go mobile phone company, slid 22 percent to $17.71 after posting quarterly results and revenue that missed analysts’ estimates as rivals increased competition with new products. Yesterday, telephone stocks slid the most of 10 industry groups in the S&P, dropping 1.2 percent after MetroPCS Communications Inc. reported disappointing results. PMI Group Inc., the fourth-largest U.S. mortgage insurer, lost 9.7 percent to $3.18. The company posted an eighth straight quarterly loss, missing the average analyst estimate. Mortgage defaults cut into income and policy sales declined. To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net .

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AP Shares – Dangote Sues Otedola For N2 Billion

July 23, 2009

AP Shares – Dangote Sues Otedola For N2 Billion

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