Revenues net of interest expense rose 3% to $7.2 billion from $7.0 billion a year ago. Income from continuing operations declined 23% to $861 million from $1.1 billion a year ago. Diluted earnings per share from continuing operations declined 21% to $0.74 from $0.94 a year ago.
Invensys PLC said first half revenues increased 8.7% to £1.09 billion and net profit grew 34% to £75 million or 9.1 pence a share. Tate & Lyle PLC first half sales increased 25% to £1,698 million and net profit dropped to £65 million or 18.0 pence a share.
U.S. stocks plunged nearly 5% on the second day in a row after Cisco lowered its sales outlook, initial claims of unemployment were at elevated levels and same store sales at retailers fell. The ECB, Bank of England and Swiss National Bank lowered key lending rates. Toyota plunged on earnings.
Las Vegas Sands plunged on loan default and bankruptcy filing possibilities. Whole Foods rose after earnings and capital injection from a private equity fund. Toyota Motor dropped after it lowered earnings outlook. Cisco offered weak sales outlook. Cott Corp dropped 17% on a net loss.
U.S. stocks traded lower after Cisco estimated sales decline of 10% in the current quarter and News Corp reported weak results. European markets fell despite a rate cut in the region. The ECB and Swiss National Bank cut rate by 50 basis points and the Bank of England lowered it by 150 basis points.
The Bank of England sharply lowered its key lending rate by 1.5% to 3%. The larger than anticipated rate cut was overshadowed by fall in metals and energy prices. The negative sentiment dragged stocks in UK lower by 6% and in Europe more than 5%.
Stocks in Japan fell sharply on the weak earnings outlook from Toyota and sell off in the U.S. markets. Toyota Motor net revenue declined 6.3% in the first half and estimated annual profit to drop 68%. Isuzu Motors net in the first half fell 19% and lowered annual profit outlook.
Stocks in Hong Kong dropped 7% and in Shanghai declined 2.5% after higher than expected private sector job losses in the U.S. Japan and other markets in Asia fell as well. Cathay Pacific warned that fuel hedging contract will cost the company $360 million.
Stocks in Mumbai fell after the annual wholesale inflation at the end of third week in October rose to 10.7%. The increase in inflation is likely to limit future rate cuts from the Reserve Bank of India. Foreign investors continue to sell stocks in India. Oil meal exports from India dropped 40%.
Australian stocks plunged 4% after the U.S. private sector employment report. Commodities and energy prices dropped as well. Australia employment adjusted for seasonal factors rose in October, unexpectedly. Media conglomerate News Corp first quarter net dropped to $515 million from $732 million.
