The nation’s second-largest cable company, Time Warner Cable, says its third-quarter earnings slipped 1 percent even as its revenue rose.
Time Warner Cable Inc. said Thursday that its net income fell to $356 million, or $1.08 per share. That’s down from $360 million, or $1 per share, in the same period a year earlier.
Revenue grew 4 percent to $4.91 billion from $4.73 billion.
Analysts polled by FactSet were expecting earnings of $1.13 per share on revenue of $4.95 billion.
Time Warner Cable says its residential services revenue climbed 2 percent to $4.3 billion. Business services revenue jumped 35 percent to $387 million. A growth in the number of high-speed data subscribers helped boost results.
Advertising revenue fell 3 percent to $216 million.
Scratch the Timbits the next time you order that double-double. How about a nice slab of lasagna instead?
Tim Hortons announced Monday it
JEFFERSON CITY
Stocks are opening sharply lower on renewed worries that Europe’s debt crisis will spread.
Banks are leading stocks lower in early trading Monday. Treasury prices are rising, pushing yields near their lows for the year.
Traders fear that Greece could default on its debts, and European policymakers are divided over how to handle the crisis.
A default by one of Europe’s heavily indebted governments could spread through the global banking system payday loans guaranteed no fax. Economists worry that Europe’s debt crisis could tip a weakening U.S. economy into another recession.
The Dow Jones industrial average is down 114 points, or 1 percent, to 10,882. The S&P 500 index is down 10, or 0.9 percent, to 1,143. The Nasdaq is down 15, or 0.6 percent, to 2,452.
ConocoPhillips is defending its handling of oil spills off China’s eastern coast, denying allegations that it sought to deceive authorities by falsely claiming to have stopped and cleaned up the seeps.
The spills began in June and last week led to an order to halt all production in the affected Penglai 19-3 oil field in Bohai Bay. They have prompted a chorus of criticism against ConocoPhillips in China’s state-run media, along with calls from environmentalists for harsher penalties for damages.
The China arm of ConocoPhillips operates wells in Penglai 19-3 in a venture with state-owned China National Offshore Oil Corp., whose role, despite its majority 51 percent stake in the venture, has drawn little public attention.
ConocoPhillips said in a statement Monday it was committed to complying with the law and conducting “all business activities with the highest ethical standards.”
“This commitment fully applies to how we conduct our business in China,” it said.
ConocoPhillips requested a correction of a weekend news report on state-run China Central Television. The report claimed that a ConocoPhillips China employee interviewed by marine radio said the company was deliberately deceiving the State Oceanic Administration in reporting that the oil spills had been fully contained and cleaned up.
“The ConocoPhillips China employee interviewed by CCTV did not make the negative comment which CCTV is attributing to him,” it said.
The State Oceanic Administration said Friday that its investigation found ConocoPhillips had failed to fully comply by an Aug. 31 deadline with its orders to completely clean up damage from the spills and to ensure they would not recur.
ConocoPhillips said it was working with CNOOC to bring output to a halt. CNOOC said the suspension of production in Penglai 19-3 would reduce output by 40,000 barrels a day, in addition to the 22,000 barrels a day lost with the shut-down of the two wells where the spills occurred.
The spills, which occurred June 4 and June 17, released about 700 barrels of oil into Bohai Bay and 2,500 barrels of mineral oil-based drilling mud onto the seabed, according to the company.
It says small amounts of oil and mineral oil-based drilling mud, used as a lubricant, that are still emerging are from earlier seeps that have been shifting under layers of sand on the seabed.
But the State Oceanic Administration said that monitoring by satellite, underwater robots and other means showed that the oil was not fully cleaned up and was still seeping. It repeated criticism over ConocoPhillips’ containment measures, deeming them not a permanent solution, and questioned the company’s operating procedures.
It ordered the company to strictly comply with CNOOC’s supervision.
The official newspaper China Daily, in a harshly worded commentary, said Monday that a joint investigation by seven government departments found ConocoPhillips China had “seriously violated operating rules.”
“Not only is the oil spill worse than the company reported but, despite its assurances to the contrary, it has failed to bring the situation under full control and find and stop the sources of the spills,” it said. “Obviously, China needs to learn a lesson from this incident.”
The maritime authority has said it is preparing to file lawsuits on behalf of those who suffered losses due to pollution from the spill.
BRENTWOOD
U.S. stock futures are swerving between small gains and losses early Friday as traders await fresh economic data and a major speech by Federal Reserve Chairman Ben Bernanke.
The government reports at 8:30 a.m. on the pace of growth in the second quarter. Economists expect that the economy grew at a 1.1 percent annual rate _ slower than the 1.3 percent estimated previously.
The market’s reaction might be muted. Shares already have fallen this month as analysts and companies said the economy has slowed more than they had expected.
Bernanke’s speech at 10 a.m. is bigger news for traders of stocks, bonds and commodities. Many hope he will outline aggressive plans by the central bank to boost the economy. The Fed has already pledged to keep short-term interest rates low until mid-2013. Low rates make higher-risk bets such as stocks more attractive to investors.
At last year’s conference in Jackson Hole, Wyo., Bernanke signaled that the central bank would buy more government bonds to lower long-term interest rates. Stocks rose throughout the period when the Fed bought up $600 billion of Treasurys.
This year, economists say, Bernanke will likely lay out a list of options. The market’s reaction might be violent. Analysts say stocks might soar and plunge as traders decipher Bernanke’s message paydayloan.
About an hour before markets open, Standard & Poor’s 500 futures fell 3, or 0.2 percent, to 1,155. Dow Jones industrial average futures lost 31, or 0.3 percent, at 11,100. Nasdaq 100 futures dropped 6, or 0.3 percent, to 2,106.
Stocks fell sharply on Thursday, ending a three-day rally. The Dow Jones industrial average closed down 170.89 points, or 1.5 percent, to close at 11,149.82.
Financial shares rose on news from Bank of America Corp. that Warren Buffett will invest $5 billion in the troubled company. Its shares leaped 9 percent. Bank of America has lost half of its value this year as investors feared massive losses related to shoddy mortgages that it bundled and sold.
Major U.S. stock indexes are still up more than 3 percent for the week.
The market’s quick reversals were driven in part by speculation about Bernanke’s speech. Early gains were fueled by rumors that he would announce another round of bond-buying by the central bank. As the week went on, consensus grew that Bernanke will not announce firm plans.
The European Union said Thursday it would help Greece access billions of euros in EU development funds in an attempt to boost the country’s struggling economy and sweeten unpopular austerity measures ahead of a tight parliamentary vote.
European Commission President Jose Manuel Barroso said the EU was prepared to reduce the amount of money Greece has to come up with to co-fund projects under its regional funds to 15 percent, from the usual 50 percent. The Commission, which manages the funds, and other EU member states will also set up a program of technical assistance to make sure debt-laden Greece uses the money to stimulate economic growth and create new jobs.
The EU funds are designed to help underdeveloped regions catch up with richer parts of the 27-nation bloc. About euro15 billion ($22 billion) is still available for Greece until 2013, but the country has been struggling to prove it can use the funds well and come up with matching financing.
EU leaders hope that the prospect of some EU funds _ which, in contrast to the rescue loans Greece has been receiving for the past year, do not have to be repaid _ will offer some hope to Greek citizens who have been suffering through a steep economic recession and unemployment above 16 percent.
The Greek debt crisis, which has already spilled over into Ireland and Portugal and threatens to take a larger toll on the 17-country eurozone, has reached a new boiling point in recent weeks. Barely one year after first being granted euro110 billion in rescue loans from other eurozone countries and the International Monetary Fund, it has become clear that Greece will need tens of billions more to avoid defaulting on its massive debts in the coming years.
But eurozone governments have blocked a final deal on a new aid package _ as well as the payment of a crucial euro12 billion installment of the existing bailout _ until the Greek parliament passes euro28 billion in additional spending cuts, tax increases, economic reforms and public asset sales. The new measures, which will allow Greece to meet the deficit targets set out in its bailout program, have sparked sometimes violent protests and been strictly opposed by the conservative opposition party.
In their statement Thursday night, the leaders said the comprehensive package of reforms “must be finalized as a matter of urgency in the coming days” for the new funds to be disbursed. Earlier in the day, they also piled pressure on Greek opposition leader Antonis Samaras, who was in Brussels for a meeting of European conservatives, to back the new measures.
“We call on the opposition to fulfill its historical responsibility,” German Chancellor Angela Merkel said as she arrived at the summit. Samaras’ conservative party had been in power for years before Socialist Prime Minister George Papandreou took over in late 2009 and discovered that Greece’s deficits were much bigger than previously disclosed.
But in their final statement, the leaders also made a stronger commitment to a second aid package for Greece, saying the promised austerity measures “will provide the basis for setting up the main parameters of a new program jointly supported by its euro area partners and the IMF.”
The leaders decided that the European Commission’s bailout fund, the European Financial Stability Mechanism, won’t be part of the new Greek bailout, EU President Herman Van Rompuy said. That’s a win for British Prime Minister David Cameron, who had strictly opposed using the euro60 billion EFSM, which is backed by the EU budget.
On his way out of the summit, Greek Prime Minister George Papandreou said “very important decisions” had been made at Thursday’s meeting. “We got the support of our partners. This is not only a green light but a positive sign for the future of Greece,” he said. “I believe we are on a stable on a stable course. It is a difficult course for Greece.”
The leaders put off another decision originally slated for Thursday’s talks. The formal appointment of Mario Draghi as the next president of the European Central Bank won’t be debated until Friday, Van Rompuy said. However, others implied that even on Friday no agreement will be found on Draghi, as fellow Italian executive board member Lorenzo Bini Smaghi has so far refused to leave his post.
The French, who with the departure of current ECB President Jean-Claude Trichet on Oct. 31 would not have a representative on the board, will only support Draghi if a Frenchman or woman takes over Smaghi’s spot.
“I do know that French expectations concern the succession of Mr. Draghi,” said Luxembourg Prime Minister Jean-Claude Juncker. “The rule is that the members of the governing council are appointed for eight years and it is up to them to decide” when to leave.
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Raf Casert, Don Melvin and Angela Charlton contributed to this story.
What began with a steep drop in the stock market ended with a modest decline Thursday. The Dow Jones industrial average lost just 60 points after being down nearly 240 points earlier in the day.
A jump in the number of people applying for jobless benefits and plummeting oil prices drove stocks lower at the market open. By 11 a.m., the Dow was down 234 points. Then came late afternoon reports that Greece may have reached a deal for a new austerity plan. The Dow made up nearly 100 points between 2:45 and 3 p.m. alone.
The Dow finished with a loss of 59.67 points, or 0.5 percent, to 12,050. The Standard & Poor’s 500 index, down as many as 24 points, closed down just 3.64, or 0.3 percent, to 1,283.50.
Since late April, reports on manufacturing, retail sales, home sales and other economic indicators have come in weaker than economists anticipated. Europe’s debt problems and a slowing growth rate in China have also raised concerns about the global economy. On Wednesday, Federal Reserve Chairman Ben Bernanke said problems plaguing the economy may last longer than previously thought.
As a result, the stock market has fallen six of the last seven weeks. The S&P 500 is down 5.9 percent from its high for the year of 1363.61 in April.
“This is no longer looking like a small soft patch. It’s beginning to look more like quicksand,” said Lawrence Creatura, a stock portfolio manager at Federated Investors.
The continued rise in first-time claims for unemployment benefits indicated little improvement in the job market since May, when there was a drop in the number of new jobs created. New applications for unemployment benefits rose to 429,000 last week, from 420,000 the week before.
“400,000 is the magic number and we’ve been above it for 11 weeks,” Creatura said.
Energy companies like Exxon Mobil and Chevron Corp. led the market downward after oil prices tumbled nearly 5 percent. Oil dropped after the International Energy Agency said 60 million barrels of oil would be released from reserves to make up for the loss of Libyan exports. Oil prices had spiked following unrests in Middle East and North Africa, raising concerns that higher fuel costs would slow the world economy.
Companies like Netflix, Priceline.com and others in the consumer discretionary industry were mostly up guaranteed payday loans. Overall, the group rose 0.4 percent. Investors are betting that a drop in oil costs could lead consumers to spend more money on things like movies, restaurants and clothing. Netflix was up 2.9 percent. Chipotle Mexican Grill gained 2.2 percent.
Companies that benefit from lower fuel costs also rose. Airline stocks like United Continental Holdings Inc. and AMR Corp, the parent company of American Airlines, rose more than 4 percent.
The two indexes most tied to economic growth fared better than the broader market. The tech-focused Nasdaq composite index was up 17.56, or 0.7 percent, to 2,686.75. And the Russell 2000 index of small companies gained 0.4 percent. For the week, both are up 2.7 percent.
“We’re starting to see that the supply-chain disruptions caused by the tragedy in Japan are easing a bit, and the biggest beneficiaries of that are technology and auto-supply companies” which tend to be smaller businesses, said Burt White, the chief investment officer at LPL Financial.
Among the most active stocks, Bed Bath & Beyond gained 5.3 percent after the home furnishings retailer posted a 31 percent jump in income. The company also raised its earnings forecast for the rest of the year, in part because of cost controls it has in place. ConAgra Foods Inc. fell 0.2 percent. The owner of Slim Jim and Hebrew National brands cut its earnings estimate for the current quarter.
Government bond prices were higher as traders shifted money into investments that are considered safe, pushing long-term interest rates lower. The yield on the 10-year Treasury note sank to 2.90 percent, near its low mark for the year. Bond yields fall when their prices rise.
Even so, portfolio manager Creatura says that the recent market slide could represent a chance to pick up some stocks on the cheap. Current prices already reflect reaction to most of the economy’s problems, he says. “The most fearful times can be the best times to invest,” he said. “It’s not only what you buy, it’s the price you pay that matters.”
Three stocks fell for every two that rose on the New York Stock Exchange. Volume was slightly above average at 4.4 billion.
The Food and Drug Administration on Friday approved a highly anticipated hepatitis C drug from Merck that is the first new treatment for the virus in 20 years.
The first-of-its-kind pill, Victrelis, has been shown to cure more patients in less time than the older drugs now used.
About 3.2 million people in the U.S. have Hepatitis C, a blood-borne disease linked to 12,000 deaths a year. The current two-drug treatment for the virus cures only about 40 percent of people and causes side effects like nausea, fatigue and vomiting.
The FDA said it approved the new drug based on two trials in which more than 65 percent of patients were cured when combining Victrelis with the two older drugs. Like HIV drugs, Victrelis will be prescribed as part of a drug cocktail to fight the virus.
Some patients were also able to eliminate the virus in seven months on the drug, nearly half the time needed with the current treatments alone.
Boceprevir works by blocking the enzyme protease that helps hepatitis reproduce. It differs from the older medications that boost the immune system.
“This new medication provides an effective treatment for a serious disease, and offers a greater chance of cure for some patients’ hepatitis C infection compared to currently available therapy,” said Dr. Edward Cox, director of the FDA’s office of antimicrobial products.
The drug, known generically as boceprevir, is designed to be taken three times a day with meals. Side effects include fatigue, nausea, headache and low blood cell count.
Analysts expect boceprevir to reach annual sales between $800 million and $1 billion. The drug is one of two new hepatitis treatments expected to gain approval this month. Vertex Pharmaceuticals is scheduled to receive a decision on its drug, telaprevir, by May 23. That drug is could garner even higher sales of up to $3 billion due to higher efficacy data, according to analyst estimates.
Hepatitis C is the primary cause of liver transplants in the U.S. and is expected to become a much larger public health problem as aging baby boomers succumb to the disease.
People can get the disease by sharing needles or having sex with an infected person. The disease could also be picked up from blood transfusions before 1992, when testing of the blood supply for the virus began.
Most people with hepatitis C don’t even know they have the virus until after liver damage has occurred, which can cause abdominal pain, fatigue, itching and dark urine.
Current treatment for hepatitis C runs about $30,000. A spokeswoman for the Whitehouse Station, N.J.-based Merck could not immediately discuss the drug’s price. The company will begin shipping the drug immediately.
“We look forward to building on our legacy in the fight against infectious diseases, and to being a part of this exciting new era in the treatment of hepatitis C,” said Merck CEO Kenneth Frazier, in a statement.
Merck & Co. Inc. was the first company to market a drug for hepatitis C in 1991 when it launched interferon-alpha.
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