The dollar was broadly steady against the euro and a range of currencies in European trade Tuesday as traders hunkered down ahead of a U.S. holiday and a key week of U.S. data and European interest-rate decisions.
The optimism that bubbled up in the wake of Friday’s EU summit deal to reduce Spanish and Italian borrowing pressures eased back a bit but remained largely intact, despite lingering uncertainties over the details of the deal and the exact level of agreement across the 17-country euro-zone bloc.
Microsoft Corp. (MSFT) is taking a $6.2 billion writedown for almost the entire amount it paid for Internet-advertising company AQuantive Inc., signaling that its online division will perform worse than the company projected.
The non-cash charge means the company will probably post a loss for the quarter, which ended in June. Before yesterday’s statement, analysts had predicted that Microsoft would report profit of $5.3 billion in the period, data compiled by Bloomberg show.
Microsoft bought AQuantive for about $6.3 billion in 2007 to catch Google Inc. (GOOG), amid an acquisition spree for companies that specialize in online advertising. The deal failed to accelerate growth as much as anticipated at the company’s money- losing online division, Microsoft said. The company won’t reverse losses as quickly as it intended, said a person with knowledge of the matter, who’s not authorized to speak publicly.
The US electricity regulator has subpoenaed JPMorgan Chase twice in the past three months as it investigates whether the bank manipulated power markets in California and the Midwest region, court filings show.
The filings mark the first time the Federal Energy Regulatory Commission has revealed its formal probe into JPMorgan bidding practices, which it says may have inflated electricity costs by at least $73m.
The documents also push into public view legal manoeuvring between government and JPMorgan attorneys as the commission seeks 25 emails the bank argues are privileged. FERC on Monday petitioned a US federal court to require JPMorgan to produce the emails, shedding light on its investigation in the process.
FERC, a small but potent regulator, has in the past year compelled Constellation Energy, an utility, to pay $245m in to settle another case.
Chelsea Therapeutics International (CHTP) was notified by the U.S. Food and Drug Administration that data from the drug maker’s continuing study of its Northera low-blood-pressure medication–the drug developer’s lead drug candidate–is unlikely to provide enough evidence to support marketing approval for the treatment. Shares were down 55% at 66 cents premarket.
Microsoft Corp. (MSFT) on Monday said it will record a $6.2 billion goodwill writedown in its online services division, to be recorded in its fiscal fourth quarter. Shares were down 23 cents at $30.33 premarket.
Duke Energy Corp. (DUK) said Progress Energy Inc.’s Bill Johnson, who had been slated to be chief executive and president of the combined company, resigned by mutual agreement and Jim Rogers will assume the role as the merger between the two utilities closed. Mr. Rogers, who originally served as Duke Energy’s CEO, was initially slated to be the executive chairman of Duke Energy after the merger. Shares were down 1.7% at $68.68 premarket.
Nanosphere Inc. (NSPH) was upgraded by Jefferies to buy from hold, as the analysts said the Food and Drug Administration’s recent approval of the company’s test to detect certain bacteria that can lead to life-threatening bloodstream infections removes significan operational and financial overhangs on the stock. Shares were up 7.9% at $2.72 premarket.
Watchlist:
Brookdale Senior Living Inc. (BKD) named Jeffrey R. Leeds as its nonexecutive chairman, replacing Wesley R. Edens, who had been chairman since the company was formed and will stay on the board.
Standard & Poor’s Ratings Services boosted CF Industries Holdings Inc. (CF) into investment-grade territory, citing the fertilizer producer’s recent operating performance and leverage-related metrics.
CME Group Inc. (CME) saw its trading volume fall last month amid a steep decline in trading of interest-rate futures at the world’s largest futures market operator.
Corporate Executive Board Co. (EXBD) has agreed to acquire privately held U.K.-based talent-testing company SHL for $660 million in cash as it seeks to expand its market.
Jaguar Mining Inc. (JAG, JAG.T) said Rogerio Fernandes, its chief operating officer, will resign due to health reasons, adding to a senior management shakeup at the Brazilian gold producer.
LCA-Vision Inc. (LCAV) said laser-vision-correction procedures rose 2.4% during the second quarter as the economy shows signs of a slow recovery.
Penson Worldwide Inc. (PNSN) named Vice Chairman Daniel P. Son as interim chief executive, succeeding Philip A. Pendergraft, who is retiring as CEO and as a board member.
SourceFire Inc. (FIRE) said its chief executive officer, John Burris, has taken a medical leave of absence to undergo treatment for colon cancer and said it expects second-quarter results to be at the high end of or exceeding its expectations.
TranSwitch Corp. (TXCC) has named a new board chairman, and unveiled a restructuring plan aimed at saving $8 million in employee-related costs and other areas.