Steelmakers fell as global economic slowdown forces companies to cut production. ArcelorMittal dropped 10% and AK Steel declined 12%. Best Buy offered weak outlook for the holiday season. CB Richard Ellis dropped 14% on the worries that public offering will dilute shareholders.
The unemployment rate in the UK jumped to 5.8% in the third quarter to September. The BoE lowered its inflation forecast for the second half. Sainsbury lifted its dividend on higher quarterly profit. Thomson Reuters revenue rose but net fell.
Global markets struggle to find footing as politicians around the world struggle to save financial systems and devise plans to support sagging economic growths. NTT DoCoMo agrees to pay $2.7 billion for 27% stake in Tata Teleservices. ING reports its first quarterly loss ever.
Nikkei 225 index in Japan dropped below its underlying book value as domestic investors sell stocks. Consumer confidence in Japan dropped to the lowest level since 1982 in October. Inpex lowered its revenue and earnings outlook for the year. Softbank led the gainers after Alibaba.com earnings rise.
Industrial production in India rises 4.8% in September. Stocks fall on political uncertainty as state wide polls draw near. Tata Teleservices sell 26% stake for $2.7 billion to NTT DoCoMo of Japan. Software exporters rose after the rupee declined to 48.84 to a dollar.
The Producers Price Index in China rises to 6.6% in October and CPI increased to 4%. Alibaba.com reported higher than expected earnings lifting the stocks 10%. Third quarter net rose 49%. Stocks in Hong Kong fell 0.7% and in Shanghai declined 1.2%. Li & Fung surges 11% on an outsourcing order.
Stocks in Australia dropped despite a rise in consumer sentiment. UBS lowered net income estimate by 9% for Rio Tinto after the mining giant lowered production target by 10%. Fortescue Metals lowered iron ore shipment estimate on a fall in demand plant shut downs.
Starbucks, the coffeehouse chain reported a 3% rise in fourth quarter revenues to $2.5 billion from a year ago. Net income declined 97% to $5.4 million and earnings per share fell to $0.01 compared to $0.21 per share in the prior year fourth quarter. Domestic comparable same store sales fell 5%
The largest insurance company reported third quarter net loss of $24.47 billion or $9.05 per share as compared to net income of $3.09 billion or $1.19 per share. The US Treasury announced that it will purchase $40 billion of AIG preferred shares and relax the terms of the original loan.
The Amazon.com third quarter sales gained 31% to $4.26 billion and net income surged to $118 million on revenue. The company lowered the revenue guidance to $19.46 billion from the previous estimate of $20.10 billion. Worldwide revenue declined 28% when currency gains of $80 million were excluded.
