CANADA STOCKS-TSX stumbles on weak bank, energy shares - Reuters UK CANADA STOCKS-TSX stumbles on weak bank, energy shares - Reuters UK

Tuesday, June 5, 2012

CANADA STOCKS-TSX stumbles on weak bank, energy shares - Reuters UK

CANADA STOCKS-TSX stumbles on weak bank, energy shares - Reuters UK

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Global slump alert as world money contracts - Daily Telegraph

The Americans may act first. Goldman Sachs expects Federal Reserve chair Ben Bernanke to open the door for QE in testimony on Thursday.

Stock markets rallied in Madrid and Milan led by bank shares on rumours of an EU plan to recapitalise banks directly with funds from the EU bail-out machinery.

Olli Rehn, the EU economics chief, said use of the European Stability Mechanism to bail out lenders was a "serious possibility", adding that it was imperative to "break the link between banks and sovereigns".

However, there is no sign yet that Germany will be willing to drop its veto on such action, viewed by Berlin as the start of debt mutualisation. Chancellor Angela Merkel crushed talk of an instant "banking union" after meeting commission president Jose Barroso, saying their could be no quick fix. She called instead for EU banking supervision as a "mid-term goal".

Her spokesman said any options that "resemble eurobonds" are for the distant future. "It's up to national governments to decide whether they want to avail themselves of aid. That also applies to Spain," he said.

Use of the ESM for bank bail-outs would meet fierce resistance in the German, Dutch and Finnish parliaments. A senior EU official said even Germany's Social Democrats are cooling on eurobonds. "They looked at the polling data and shivered. The German people are not willing to send money into a bottomless pit," he said.

Stocks Slump: Is a Summer Meltdown or Pre-Election Rebound Ahead? - Yahoo Finance

Stocks are under pressure today in the aftermath of the weaker-than-expected May jobs report, a surprise drop in Factory Orders reported earlier, last Thursday's revision to Q1 GDP to 1.9% from 2.2%, and more signs that China's economy may be slowing. The major U.S. indexes are close to giving up all gains for 2012. The Dow Jones Industrial Average went in the red on Friday, and the S&P 500 is another 1% away from turning negative, while the Nasdaq is still roughly 5% higher for the year.

"This is where we cross the rubicon," says Lee Munson, author of Rigged Money and CIO at Portfolio, LLC. "We're in an election year," he continues, pointing to historical data that indicates the weakest months leading up to a presidential race are April and May and the strongest are June, July, and August.

"June is going to be the time where you want to get in there and buy and have a very nice summer rally," he says.

But Munson is quick to admit the fundamentals are equally important, and you must pay attention to slow growth in the labor market. Last week we saw weakness across the board in the Labor Department's latest jobs report, as well as a surprise jump in initial jobless claims.

"You have to talk about the job market because overall, over the past couple years, we are making headway. But believe me, nobody likes the pace, including myself," he says. "Nobody likes the type of jobs we're creating; nobody likes the speed. But the bottom line is, we're off the bottom."

And as for the looming threats that will remain in focus through this summer, they're all front and center already, and not likely to jolt the market lower.

"Europe is still a disaster, the deficit cliff is still a disaster, and China continues to have this hard landing-esque landscape. So if we get some type of swoon, which I think we just had, I think it will have less impact, and the rebound should be just as sweet," says Munson. "I think people should not bet that it's going to get as bad as it did last summer."

So if you're willing to shrug off the headlines and buy stocks, Munson advises you keep it simple: Avoid Europe and stick with the S&P 500. And, oh yeah, he's considering buying into Japanese stocks (EWJ) this week! He couldn't leave us without throwing just one curveball.

Are you expecting a summer meltdown or pre-election rebound? Let us know your thoughts in the comment section below or visit us on Facebook.

Delta Reports Financial and Operating Performance for May - Yahoo Finance

ATLANTA, June 4, 2012 /PRNewswire/ -- Delta Air Lines (DAL) today reported financial and operating performance for May 2012.

(Logo: )

Delta's consolidated passenger unit revenue (PRASM) increased 6 percent for the month of May as compared to the prior year.  While lower than recent guidance by one point, May's performance is strong when viewed in the context of an exceptional May performance in 2011. The variance to recent guidance is due primarily to the impact from competitor fare actions in the second half of the month. Delta expects strong peak season revenue performance.

System load factor increased 0.2 points on a 0.9 percent reduction in capacity.

The company's fuel price per gallon was $3.37 for the month. 

Delta had strong operational performance during the month. Delta's completion factor of 99.7 percent was 0.2 points higher than prior year, and its on-time performance improved 3.7 points to 86.4 percent.

The company's financial and operational performance is detailed below.


Note: Fuel price includes taxes, transportation, settled hedges, and hedge premiums, but excludes mark to market adjustments on open hedges.

Delta Air Lines serves more than 160 million customers each year. During the past year, Delta was named domestic "Airline of the Year" by the readers of Travel Weekly magazine, was named the "Top Tech-Friendly U.S. Airline" by PCWorld magazine for its innovation in technology and won the Business Travel News Annual Airline Survey. With an industry-leading global network, Delta and the Delta Connection carriers offer service to nearly 350  destinations in 65 countries on six continents. Headquartered in Atlanta, Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, a world-class airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Delta is investing more than $3 billion through 2013 in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Customers can check in for flights, print boarding passes, check bags and review flight status at

Forward-looking Statements

Statements in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995.  All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements.  These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the impact of posting collateral in connection with our fuel hedge contracts; the impact of significant funding obligations with respect to defined benefit pension plans; the impact that our indebtedness may have on our financial and operating activities and our ability to incur additional debt; the restrictions that financial covenants in our financing agreements will have on our financial and business operations; labor issues; interruptions or disruptions in service at one of our hub airports; our increasing dependence on technology in our operations; the ability of our credit card processors to take significant holdbacks in certain circumstances; the possible effects of accidents involving our aircraft; the effects of weather, natural disasters and seasonality on our business; the effects of an extended disruption in services provided by third party regional carriers; our ability to retain management and key employees; competitive conditions in the airline industry; the effects of the rapid spread of contagious illnesses; and the effects of terrorist attacks.  

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2011.  Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of June 4, 2012, and which we have no current intention to update.


Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures

May 2012

Delta sometimes uses information that is derived from its Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Certain of this information are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules.  The non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results.

  • Delta adjusts for mark to market ("MTM") adjustments for fuel hedges recorded in periods other than the settlement period in order to evaluate the company's financial results in the period shown.


Asian Stocks, Euro, Oil Rise on Stimulus Speculation - Bloomberg

Asian stocks rose for the first time in five days, the euro strengthened and oil climbed amid speculation global policy makers will take steps to stimulate economic growth. The U.S. dollar depreciated while yields on Treasuries, Australian and Japanese bonds climbed.

The MSCI Asia Pacific Index added 1 percent as of 12:41 p.m. in Tokyo and Standard & Poor’s 500 Index futures gained 0.3 percent. The euro climbed for a third day, while the yen and the dollar weakened against most of their major counterparts. Crude oil in New York rose for a second day. Yields on 10-year Treasuries increased one basis point to 1.53 percent.

Leaders from the Group of Seven countries will hold a conference call to discuss the European debt crisis today ahead of the G-20 meeting next week. The Reserve Bank of Australia will lower its key interest rate by 25 basis points to 3.5 percent today, according to a median estimate of economists surveyed by Bloomberg News. China’s insurance regulator said it will allow insurers’ to broaden their investment scope, and four Taiwan government-controlled funds bought stocks yesterday to help pare losses, according to the Taipei-based Commercial Times.

“We are likely to see a reasonably strong policy response in a number of countries,” said Angus Gluskie, managing director at White Funds Management in Sydney, who manages more than $350 million. “It’s stacking up to be a reasonably good buying opportunity.”

MSCI Asia Pacific Index rebounded from the lowest close since November, as declines yesterday dragged down valuations on the region’s benchmark to 11.2 times estimated earnings on average, the lowest this year.

Qantas Tumbles

Australia’s S&P/ASX 200 Index (AS51) advanced 1.1 percent as interest-rate swaps indicate traders are certain the RBA will lower its 3.75 percent overnight cash-rate target by at least 25 basis points, with a better than 40 percent chance it will cut the benchmark by 50 basis points. The board will release its decision at 2:30 p.m. in Sydney.

Qantas Airways Ltd. (QAN), Australia’s largest carrier, plunged to a record low in Sydney after saying annual profit may decline as much as 91 percent amid mounting losses on international routes and increased fuel costs. Qantas slumped as much as 18 percent before trading at A$1.18.

Taiwan’s Taiex Index (TWSE) climbed 1.7 percent, the biggest increase among key Asian stock gauges tracked by Bloomberg amid speculation the government will take steps to bolster equities.

Shanghai Composite

Taiwanese lawmakers are trying to find a compromise solution among 20 draft bills and 10 versions of a capital gains tax on stock trading, the official Central News Agency reported yesterday.

Searches for “Shanghai Composite” were blocked from China’s most-used microblogging service after the stock index’s drop on the 23rd anniversary of the Tiananmen Square crackdown corresponded to the date of the event. The Shanghai Composite Index dropped by 64.89 points yesterday, matching the date on which Chinese authorities crushed student-led protests on June 4, 1989. The gauge was little changed today.

Korea’s Kospi Index (KOSPI) advanced 0.8 percent, while the Nikkei 225 Stock Average (NKY) gained 0.5 percent in Tokyo. Japan’s broader Topix Index (TPX), which entered a bear market yesterday as it plunged to a level not seen since 1983, added 0.9 percent.

The S&P 500 closed up less than 0.1 percent in New York yesterday after it fell 9.9 percent from a four-year high on April 2 through last week.

Factory Orders Decline

The Institute for Supply Management’s non-manufacturing index, which covers almost 90 percent of the economy, probably held at 53.5, matching April’s four-month low, according to median forecast of economists surveyed by Bloomberg before a report from the Tempe, Arizona-based group today. Orders to U.S. factories unexpectedly declined 0.6 percent in April from the previous month, according to the Commerce Department report yesterday.

The euro advanced 0.2 percent against both the dollar and yen to $1.2525 and 98.10 yen. The Dollar Index (DXY), which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six U.S. trading partners, fell 0.2 percent to 82.384.

Oil futures advanced 0.9 percent after rising for a second day before a government report that may show crude stockpiles dropped for the first time in 11 weeks in the U.S., the world’s biggest consumer of the commodity. U.S. inventories probably slipped 1 million barrels last week as refineries increased gasoline output to meet peak summer consumption, according to the median estimate of nine analysts in a Bloomberg News survey before an Energy Department report tomorrow.

Yields on Australia’s 10-year securities rose 10 basis points to 2.873 percent while Japan’s 10-year rate was up 1.5 basis points at 0.83 percent from yesterday, when it touched 0.79 percent, the lowest since 2003.

The cost of insuring Asia-Pacific corporate and sovereign bonds from non-payment fell, according to traders of credit- default swaps. The Markit iTraxx Asia index of 40 investment- grade borrowers outside Japan dropped 4 basis points to 206 basis points, Royal Bank of Scotland Group Plc prices show. The gauge is set for its lowest close since May 31, according to data provider CMA.

To contact the reporters on this story: Mariko Ishikawa in Tokyo at; Adam Haigh in Sydney at

To contact the editor responsible for this story: Shelley Smith at

Enlarge image Asian Stocks Advance on Policy Stimulus Speculation; Oil Rises

Asian Stocks Advance on Policy Stimulus Speculation; Oil Rises

Asian Stocks Advance on Policy Stimulus Speculation; Oil Rises

Tomohiro Ohsumi/Bloomberg

In Seoul, the Kospi index gained 0.8 percent, while the Nikkei 225 Stock Average rose 0.5 percent in Tokyo. Japan’s broader Topix Index, which entered a bear market yesterday as it plunged to a level not seen since 1983, added 1 percent.

In Seoul, the Kospi index gained 0.8 percent, while the Nikkei 225 Stock Average rose 0.5 percent in Tokyo. Japan’s broader Topix Index, which entered a bear market yesterday as it plunged to a level not seen since 1983, added 1 percent. Photographer: Tomohiro Ohsumi/Bloomberg

June 5 (Bloomberg) -- Simon Flood, chief investment officer at Lion Global Investors Ltd., talks about the impact of Europe's sovereign debt crisis on global financial markets and his investment strategy. He speaks from Singapore with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)

June 5 (Bloomberg) -- David Cassidy, an equity strategist at UBS AG, talks about Australian stocks. He also discusses the local currency, central bank monetary policy, and Qantas Airways Ltd.'s profit forecast. He speaks from Sydney with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)

Financial Engines Personalizes Better Retirement Plans with SAS ® - Business Wire

CARY, N.C.--()--Financial Engines, America’s largest independent investment advisor, needed a better way to analyze its massive database of 401(k) participant demographic information. Using software from SAS, the leader in business analytics software and services, the company will quickly and easily harness investment advisor analytics to more clearly understand what customers want and pinpoint drivers for service enrollment, ultimately resulting in more attractive retirement plan offers.

“Since our services are available to more than 8 million 401(k) participants nationwide, we can learn a great deal about what influences participant retirement choices”

“We chose SAS because we needed a secure, best-in-class solution for managing our customer data,” said Mike Ault, Director of Investor Communications at Financial Engines. “SAS was both easy to implement and scalable, giving us plenty of room to grow.”

SAS will help Financial Engines save considerable time in data manipulation, processing and analysis. In addition to increased efficiencies, the analysis provides a more comprehensive user view. “With more information and engagement, we can create solutions that meet client needs while growing our business,” said Ault.

“Since our services are available to more than 8 million 401(k) participants nationwide, we can learn a great deal about what influences participant retirement choices,” said Ault. “SAS helps us gather that intelligence efficiently, enabling us to quickly adapt and improve user experience.”

About Financial Engines

Financial Engines is the largest independent investment advisor, committed to providing everyone the trusted retirement help they deserve. The company helps investors with their total retirement picture by offering personalized retirement plans for saving, investment, and retirement income. To meet the needs of different investors, Financial Engines offers both online advice and professional management. Co-founded in 1996 by Nobel Prize-winning economist Bill Sharpe, Financial Engines works with America's leading employers and retirement plan providers to make retirement help available to millions of American workers. Financial Engines Advisors LLC is a subsidiary of Financial Engines Inc. (NASDAQ: FNGN).

For more information, please visit

About SAS

SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions, SAS helps customers at more than 55,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world THE POWER TO KNOW®. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright © 2012 SAS Institute Inc. All rights reserved.

Paulson Backs Schapiro’s Bid for SEC Rules on Money Markets - Bloomberg

Former Treasury Secretary Henry Paulson is backing U.S. Securities and Exchange Commission Chairman Mary Schapiro’s effort to impose new rules on money- market funds.

In a letter that the SEC published May 30 on its website, Paulson highlights excerpts of his 2010 book, “On the Brink,” which provides his account of the financial crisis. Paulson’s letter covered the period between Sept. 16 and Sept. 19, 2008 when Bank of New York Mellon Corp., BlackRock Inc. (BLK) and Northern Trust Corp. (NTRS) reported requests for “billions in redemptions” from their money funds. Such requests exacerbated a credit crisis that began earlier that month, he wrote.

Paulson, who was President George W. Bush’s Treasury Secretary from 2006 through 2009, has mostly avoided the debate over financial regulation since he left office. He encouraged Schapiro to use his letter to help bolster her argument that money-market funds should face tougher regulations.

“You should feel free to use this any way which helps you secure this important reform, including quoting from it, or sharing all or part of it with the press or members of Congress,” Paulson, a former chairman of Goldman Sachs Group Inc. (GS), wrote in the letter dated Feb. 22.

Michele Davis, a spokeswoman for Paulson, said he wrote the letter because Schapiro asked for his views on the issue.

Schapiro has warned since November that future runs on money-market firms could damage the economy, a view shared by Treasury Secretary Timothy F. Geithner and Federal Reserve Chairman Ben S. Bernanke.

Chamber Opposition

She is battling a lobbying campaign funded by the U.S. Chamber of Commerce, which opposes new rules as an unnecessary burden that could weaken money-market funds.

House Financial Services Committee Chairman Spencer Bachus, an Alabama Republican, has also questioned the need for new rules. The Senate Banking Committee is expected to hold a hearing on June 21 to discuss possible rules, a person familiar with the plan said.

Since November, Schapiro has met or held telephone conversations with representatives of Vanguard Group Inc., Fidelity Investments, Charles Schwab Corp. (SCHW), and JPMorgan Chase & Co. (JPM) to discuss money-market rules, according to the SEC’s records.

Schapiro initially proposed requiring money-market firms float their $1 net asset value along with mandating more capital and preventing customers from withdrawing all of their funds for 30 days. The so-called holdback provision has been particularly controversial in the industry and Schapiro is said to be open to replacing it with a fee that would be imposed on customers who take out their money during a liquidity crisis.

Floating NAV

Money-market firms have also fought the effort to move the industry to a floating net asset value. Paulson’s letter highlights a passage in his book that supports the floating value.

“The SEC should explore whether fund managers should move from a fixed NAV, which makes money-market funds resemble insured bank accounts, to a floating NAV,” he wrote. “The funds would still be good products and could offer attractive returns, liquidity and very low volatility and principal risk.”

To contact the reporter on this story: Steven Sloan in Washington at

To contact the editor responsible for this story: Maura Reynolds at

Enlarge image Former Treasury Secretary Henry Paulson

Former Treasury Secretary Henry Paulson

Former Treasury Secretary Henry Paulson

Nelson Ching/Bloomberg

Former U.S. Treasury Secretary Henry Paulson.

Former U.S. Treasury Secretary Henry Paulson. Photographer: Nelson Ching/Bloomberg

Stocks End Mostly Up In Slow Trade; Starbucks Up 3% - Investors Business Daily

Markets Update

Stocks meandered to a mixed finish Monday as the indexes struggled near their 200-day moving averages.

The Nasdaq rose 0.5%, while the S&P 500 added 0.1%. The Dow Jones industrial average shaved 0.1%. Volume fell across the board, according to preliminary data.

Economic news was mixed. In the U.S., factory orders fell 0.6% in April vs. the Street's expectations for a 0.1% gain. March orders were revised downward.

On the plus side, officials in France said they expect differences with Germany over the eurozone government debt crisis will be bridged. Meanwhile, Spain pushed for direct European rescue for Spain's banks but Germany appeared reluctant to approve a rescue without external supervision, Reuters reported.

Blue chips were mostly down, but Home Depot (HD) tacked on 1% in a quarter faster volume. The home-improvement chain has delivered EPS growth of 39% and 30% in the past two quarters.

Among leading stocks, winners outnumbered losers on the IBD 50 by a 3-2 ratio.

Starbucks (SBUX) rose more than 3% in volume almost a third faster that usual. The company said it would announce "an initiative to further strengthen Starbucks' core U.S. retail business."

O'Reilly Automotive (ORLY) added 1% in 43% heavier volume. The stock remains under its 50-day moving average.

On the downside, Spirit Airlines (SAVE) slid 5% in 80% faster action. The stock lost its 50-day line in mid-May and is now approaching its 200-day line.

Copart (CPRT), a company that guides wrecked vehicles through the auction process, dropped almost 3% in 46% faster trade as it skidded further below its 50-day line.

Among IBD's 197 industry groups, education stocks did well while airlines and home builders struggled.

See Also
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  • Starbucks Buys Bakery Chain
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  • Yum Brands Cut On China Fear; Starbucks Update Looms
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  • Futures Poised For Flat Open; Titan Machinery Rising

World stocks fall on dismal US hiring report - Yahoo Finance

BANGKOK (AP) -- World markets took a beating Monday as another setback for the U.S. economic recovery sent investors fleeing from stocks.

A weak U.S. jobs report flustered investors and intensified fears that a global recession was in the making. The dismal report released Friday came on the heels of other data that showed weak economic conditions in Europe and Asia.

Unemployment in the 17 countries that use the euro currency stayed at a record-high 11 percent in April. And there were signs that growth in China, which helped sustain the global economy through the 2008-2009 recession, is slowing significantly. China's manufacturing weakened in May, according to surveys released Friday.

Germany's DAX lost 1.4 percent to 5,963.41 and France's CAC-40 shed 0.3 percent to 2,940.33. Markets in Britain were closed for a public holiday.

Wall Street appeared headed for a lower open, with Dow Jones industrial futures shedding 0.6 percent to 12,032 while S&P 500 futures lost 0.5 percent to 1,268.40.

Markets came under siege in Asia earlier in the day. Japan's Nikkei 224 index dropped 1.7 percent to close at 8,295.63, its lowest finish since Nov. 28, 2011. The broader Topix index ended below the 700 mark for the first time since December 1983, Kyodo News Agency said.

Hong Kong's Hang Seng tumbled 2 percent to 18,185.59. South Korea's Kospi shed 2.8 percent to 1,783.13. Benchmarks in Taiwan and Indonesia fell 3 percent and 4.3 percent, respectively.

Mainland Chinese shares also lost ground, with the benchmark Shanghai Composite Index falling 2.7 percent to 2,308.55. The index's drop of 64.89 points was the biggest this year.

"US jobs numbers were not the only weak reading as manufacturing output data in China and the US were also lower, and euro area unemployment reached a record level," Stan Shamu of IG Markets in Melbourne, said in an email.

"There aren't many positives for risk assets at the moment," he said.

American employers added just 69,000 jobs in May, the fewest in a year, and the unemployment rate increased to 8.2 percent from 8.1 percent. Economists had forecast a gain of 158,000 jobs.

The report, considered the most important economic indicator each month, also said that hiring in March and April was considerably weaker than originally thought.

But the bleak outlook was balanced by what some analysts said was a sell-off that could result in good bargains for oversold stocks.

"I think it's good in terms of trading, because when there is some panic selling, then the selling pressure will be released and the short-term bottom will be there, suggesting a technical rebound," said Linus Yip, strategist at First Shanghai Securities in Hong Kong.

Falling prices for industrial metals like copper and aluminum, which are widely used in construction and manufacturing, hurt mining and resource shares. Anglo-Australian mining giant Rio Tinto Ltd. fell 4.7 percent. Hong Kong-listed Jiangxi Copper Co. lost 3.6 percent. Energy Resources of Australia plummeted 8.9 percent.

Heavy industrial shares also faltered. Japan's Nishimatsu Construction Co. plunged 7.5 percent and Australia's BlueScope Steel Ltd. sank 9.4 percent.

Japanese vehicle makers were battered. Toyota Motor Corp. fell 3.5 percent and Honda Motor Corp. lost 3.7 percent. Mazda Motor Co. dived 7.3 percent.

Sony Corp., which fell below 1,000 yen for the first time since August 1980 on Monday, briefly touching 990 yen. Sony, which has struggled to turn around its money-losing TV business, last month reported a record annual loss of 457 billion yen ($5.7 billion) for its fourth straight year of red ink. For the day, the stock fell 1.7 percent.

Benchmark oil for July delivery was down $1.30 to $81.94 per barrel, the lowest since October, in electronic trading on the New York Mercantile Exchange. The contract fell $3.30 to settle at $83.23 in New York on Friday.

In currency trading, the euro fell to $1.2420 from $1.2424 late Friday in New York. The dollar fell to 78.03 yen from 78.08 yen.


Follow Pamela Sampson on Twitter at

Financial regulators agree to coordinate on Dodd-Frank rules - The Business Journal

For all the memorandums of understanding regulators have levied on banks in recent years, there's something a little poetic about regulators giving themselves an MOU.

The MOU, issued Monday, lays out a plan for how the nation's financial regulators will coordinate their supervision of banks and credit unions with at least $10 billion in assets in light of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which has new rules for large financial institutions.

Locally, that includes McLean-based Capital One Bank  , Vienna-based Navy Federal Credit Union  and Alexandria-based Pentagon Federal Credit Union    .

The newly minted Consumer Financial Protection Bureau  , the Board of Governors of the Federal Reserve System  , the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency  and the National Credit Union Administration  jointly issued the MOU. The aim is for greater uniformity and efficiency, and to lessen the regulatory burden on banks and credit unions that answer to multiple regulatory masters.

The agencies will coordinate on things like scheduling examinations, conducting simultaneous examinations and sharing draft reports of examination for comment.

The agencies also must share information about compliance with consumer laws, consumer compliance risk management programs, and things like underwriting, sales, marketing, servicing and collections that are related to consumer products.

Bryant Ruiz Switzky covers banking, finance and corporate accountability.

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