Wall St closes lower on banks »

NEW YORK (Reuters) - Banks led stocks lower on Wednesday as the S&P 500 stalled near a 10-month-high after signs of weak European business activity rekindled concerns about a recession overseas. The Dow Jones industrial average was down 26.72 points, or 0.21 percent, at 12,938.97. The Standard & Poor's 500 Index was down 4.57 points, or 0.34 percent, at 1,357.64. The Nasdaq Composite Index was down 15.40 points, or 0.52 percent, at 2,933.17. (Reporting by Ryan Vlastelica; Editing by Kenneth Barry)

Fitch downgrades Greece on debt swap plan »

ATHENS (Reuters) - Fitch cut Greece's long-term ratings on Wednesday to its lowest rating above a default, becoming the first ratings agency to make the widely expected downgrade after the country announced a bond exchange plan to ease its massive debt burden. It said Greece would be designated as having technically defaulted after the bond exchange is formalized, but the new bonds would be give and new rating. ...

Home resales at 1-1/2 year-high, supply falls »

WASHINGTON (Reuters) - U.S. home resales rose to a 1-1/2 year high in January, pushing the supply of properties on the market to the lowest level in almost seven years in a hopeful sign for the housing sector. The National Association of Realtors said on Wednesday existing home sales increased 4.3 percent to an annual rate of 4.57 million units last month, the fastest pace since May 2010. It was the latest sign the housing market may be coming off the floor. While economists attributed some of the rise to unseasonably warm winter weather, they also said it signaled genuine improvement. ...

Citi, UBS provide keys to interest rate-rigging probe: sources »

(Reuters) - Citigroup Inc and UBS AG , in a series of disclosures to law-enforcement officials, have provided crucial information to investigators in multiple countries as part of inquiries into whether the world's biggest banks manipulated a global benchmark interest rate, according to people familiar with the situation. The two banks, linked by a trader who worked at both, have provided closely guarded details to U.S. ...

JPMorgan, Citi, BofA sued for $949 million by Sealink »

NEW YORK (Reuters) - JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp. and more than a half dozen other major banks are being hit with a new lawsuit over $949 million in residential mortgage-backed securities. A summons was filed Tuesday by Sealink Funding Ltd, an Irish entity that oversees risky RMBS, in New York state Supreme Court. Sealink has filed numerous other lawsuits against major banks over billions in residential mortgage-backed securities it bought. New York attorney Joel H. ...

Peugeot and GM in alliance talks: sources »

FRANKFURT/PARIS (Reuters) - General Motors and PSA Peugeot Citroen are discussing a manufacturing alliance designed to stem losses in Europe and reduce production costs elsewhere, sources with knowledge of the matter said. Talks between GM, the world's biggest automaker, and European No.2 Peugeot are focused on sharing vehicles and parts rather than swapping stakes, according to the people. Any new shareholdings that emerged would be small and symbolic. ...

UBS to issue more loss-absorbing capital »

ZURICH/LONDON (Reuters) - UBS might struggle to attract big institutional investors for more loss-absorbing bonds it wants to sell, after investors voiced distaste for the structure and price of an initial $2 billion deal announced on Wednesday. UBS's new bonds are designed to help bolster the bank in tough times by absorbing losses. Their value can be written down if the bank's common equity Tier 1 ratio -- a measure of financial strength -- falls below 5 percent or hits non-viability. ...

Analysis: Goldman's top brass gun for cash bonuses »

(Reuters) - While Wall Street slashes pay and freezes cash awards, Goldman Sachs Group's top five executives may reap special bonuses of $10.5 million apiece if the firm hits historically easy profit targets over the next two years. Many companies have long-term incentive plans, but Goldman's program is notable for dangling hefty cash payouts at a time when banks are tilting toward deferred-stock awards. ...

Exclusive: Palo Alto Networks, other tech firms tee up IPOs »

NEW YORK (Reuters) - A series of technology companies, including security software maker Palo Alto Networks, are preparing to go public on the heels of Facebook's $5-billion filing, sensing a window of opportunity as the stock market rallies. Technology management software maker ServiceNow, human resources software provider Workday, machine data software company Splunk and flash memory maker Violin Memory are also in various stages of planning public offerings this year, sources familiar with the matter said. These companies are expected to be valued at $1 billion and higher, they said. ...

Greece pores over bailout laws amid protests »

ATHENS (Reuters) - Trade unionists, communists and pensioners angry at punishing spending cuts in Greece marched through central Athens on Wednesday as lawmakers set to work on legislation needed to secure payment of a second bailout for the debt-laden country. Ringed by riot police, parliament debated a string of measures demanded by euro zone states in exchange for a 130 billion euro rescue, endorsed by finance ministers on Tuesday after hours of torturous negotiation in Brussels. ...

Euro zone teetering on brink of recession »

LONDON (Reuters) - The euro zone economy is in danger of tipping into recession, with the services sector shrinking this month along with manufacturing, tempering a wave of optimism after a new bailout deal for Greece struck this week. Surveys of purchasing managers published on Wednesday showed unexpectedly weak activity in the region's most powerful economy, Germany, and in France. ...

Garmin profits from higher PND prices »

(Reuters) - Garmin Ltd's quarterly results blew past estimates as revenue from personal navigation devices grew on improved pricing, and demand for its outdoor and fitness GPS products rose, sending its shares to their highest in nearly four years. The No. 1 U.S. navigation device maker also forecast 2012 results well ahead of consensus estimates, suggesting its strategy of bundling personal navigation devices with high-margin mapping services was beginning to pay off. ...

Shell to buy Cove Energy for $1.6 billion »

LONDON (Reuters) - Royal Dutch Shell Plc has made an agreed 992.4 million pounds ($1.6 billion) bid for Mozambique-focused Cove Energy , offering a full price to open up a new gas frontier for the Anglo-Dutch oil major in East Africa. Cove's main asset is an 8.5 percent stake in the Rovuma Offshore Area 1, in Mozambique, where operator Anadarko said recoverable reserves could top 30 trillion cubic feet of natural gas. The project partners plan to build plants to freeze the gas into liquefied natural gas (LNG) and ship it to Asian markets. ...

Swiss take steps to clean up tax-haven image »

BERNE (Reuters) - Switzerland announced plans on Wednesday to force banks to do more to make sure foreign clients' money is taxed in an attempt to shake off its past as a haven for untaxed funds as it seeks to put an end to a damaging U.S. tax probe. "The focus is on enhanced due diligence requirements for banks when accepting assets as well as a requirement for foreign clients to make a declaration on the fulfillment of their tax obligations," the cabinet said in a statement. ...

France Telecom takes knife to dividend »

PARIS (Reuters) - France Telecom is cutting its dividend and putting off a promised share buyback to conserve cash in the face of brutal competition from a new mobile player and Europe's ongoing debt crisis. France has been locked in a mobile price war since mid-January, when Iliad launched its ultra low-cost mobile offers, leading France Telecom to lose 201,000 customers to date. ...

Apple shareholders to meet as stock at record high »

SAN FRANCISCO (Reuters) - Apple Inc Chief Executive Tim Cook is in an enviable position - market leading products, a $98 billion warchest and a seemingly gravity-defying stock price. But as he gears up for the annual face-to-face meeting with shareholders, a few issues may be causing him angst. Chief among them are in China, where poor labor conditions are in the spotlight and Apple's iPad trademark is under attack. The meeting this Thursday comes days after Apple touched a new lifetime high of $526.29 before receding slightly. ...

U.S. mortgage applications sagged last week: MBA »

NEW YORK (Reuters) - Applications for U.S. home mortgages tumbled last week as demand for loan refinancing sagged, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 4.5 percent in the week ended Feb 17. The MBA's seasonally adjusted index of refinancing applications gave up 4.8 percent, while the gauge of loan requests for home purchases slipped 2.9 percent. The refinance share of total mortgage activity dipped to 80. ...

Aimed at banks, Volcker Rule hits unlikely targets »

(Reuters) - Some public agencies that rely on the municipal bond market for financing fear that a landmark financial reform rule will cripple their ability to sell bonds and make it more expensive to raise money for crucial services. The Volcker Rule was designed to curb the risks that banks take with depositor dollars, a practice known as proprietary trading. ...

Ford pours $3.8 billion into pension plan, eyes shift to bonds »

DETROIT (Reuters) - Ford Motor Co is pouring $3.8 billion into its global pension plan this year and will invest its plan assets more heavily in bonds, as the second-largest U.S. automaker moves more aggressively to minimize its pension risks in a shaky market. The planned cash injection, detailed in its annual securities filing posted on Tuesday, dwarfs the $1.5 billion Ford contributed in 2011. Ford also said 80 percent of its U.S. pension plans will be invested in bonds within "the next several years." Funds outside the United States have similar goals. ...

Top Olympus lender denies board ambush, but may fill chair »

TOKYO (Reuters) - Olympus Corp's main lender Sumitomo Mitsui Banking Corp (SMBC) denied it was trying to take control of the firm's board by stealth, but said it might well agree to send a former banker to be chairman of the disgraced camera and medical device maker. Foreign investors in the Japanese firm, which is engulfed by a $1.7 billion accounting fraud, have called for an entire renewal of the board, bringing in outside talent unconnected to the company, its banks or major owners. ...