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Fears over Greece's political and financial crisis5/16/2012 12:57 PM

Traders work on the floor of the New York Stock ExchangeNEW YORK (Reuters) - Stocks fell in choppy trade on Wednesday, putting the S&P 500 on track for its fourth consecutive decline as concerns about the euro zone continue to be at the forefront of investors' focus. German Chancellor Angela Merkel attempted to quell some fears by saying the euro zone was committed to keeping Greece in the currency union, but news the European Central Bank had stopped providing liquidity to some Greek banks as recapitalization wasn't in place pushed markets lower. Investors failed to be enticed by the minutes from the U.S. ...


FBI's Mueller confirms JPMorgan preliminary probe5/16/2012 10:03 AM

A security guard patrols outside the JP Morgan Chase & Co annual shareholders meeting at the bank's back-office complex in TampaWASHINGTON (Reuters) - FBI Director Robert Mueller on Wednesday confirmed that the agency has opened a "preliminary investigation" into JPMorgan Chase & Co , the nation's largest bank. JPMorgan disclosed last week that it had suffered a multibillion-dollar trading loss due to a failed hedging strategy. A person familiar with the matter said on Tuesday that the FBI's New York office has opened a preliminary probe into the loss, which has been estimated at more than $2 billion. Mueller was testifying before the Senate Judiciary Committee. ...


Insight: In Ohio, "fracking" boom a delicate issue for Obama5/16/2012 1:30 PM

U.S. President Barack Obama signs a book about him for a boy scout upon his arrival in RichmondSTEUBENVILLE, Ohio (Reuters) - Out past the vacant storefronts and abandoned buildings, beyond the shuttered steel mills and decaying industrial plants, residents of eastern Ohio suddenly are seeing dollar signs. In a region more accustomed to hard times than optimism, residents hope that a boom in shale gas drilling using the controversial technique of hydraulic fracturing - or "fracking" - will lead to wealth, jobs and a reservoir of domestic energy that could dramatically boost the area's fortunes. ...


Exclusive: ECB stops operations with some Greek banks5/16/2012 11:52 AM

Workers maintain the huge Euro logo in front headquarters of ECB in FrankfurtBERLIN/FRANKFURT (Reuters) - The European Central Bank has stopped providing liquidity to some Greek banks as they have not been successfully recapitalized, the ECB said on Wednesday, confirming news earlier reported exclusively by Reuters. The news sent the euro lower against the dollar, fanning concerns among investors and in Greece that the country may have to leave the euro zone. ...


AIG to sell AIA shares after lock-up ends in September5/16/2012 12:59 PM

Panel on top of AIA Central flashes the company sign at Hong Kong's financial Central district(Reuters) - Bailed-out insurer American International Group Inc will sell its shares in Asian insurer AIA Group Ltd after a lock-up period expires in early September, Chief Executive Bob Benmosche said on Wednesday. Benmosche said the shares "will be liquidated after September 4," according to a transcript of AIG's annual shareholder meeting on its website. He said the sale would help decrease volatility in AIG's earnings. AIG spun off two-thirds of AIA in 2010 as part of a package of asset sales to repay its $182 billion U.S. government rescue. ...


U.S. housing, industrial data point to steady growth5/16/2012 12:58 PM

To match Analysis USA-AUTOS/ECONOMYWASHINGTON (Reuters) - Groundbreaking for U.S. homes rebounded in April and factory activity gained momentum, suggesting a moderate pickup in economic growth early in the second quarter. The reports on Wednesday were the latest in a series to dampen fears that the recovery in the world's largest economy was stagnating after tepid job growth last month. The Commerce Department said housing starts increased 2.6 percent to a seasonally adjusted annual rate of 717,000 units. In a separate report, the Federal Reserve said production at the nation's mines, factories and utilities rose 1. ...


Apple readies iPhone with bigger screen: sources5/16/2012 1:44 PM

A man looks at his Apple iPad in front an Apple logo outside an Apple store in downtown ShanghaiTOKYO (Reuters) - Apple Inc plans to use a larger screen on the next-generation iPhone and has begun to place orders for the new displays from suppliers in South Korea and Japan, people familiar with the situation said on Wednesday. The new iPhone screens will measure 4 inches from corner to corner, one source said. That would represent a roughly 30 percent increase in viewing area, assuming Apple keeps other dimensions proportional. Apple has used a 3.5-inch screen since introducing the iPhone in 2007. ...


Facebook boosts IPO size by 25 percent, could top $16 billion5/16/2012 8:42 AM

A flag announcing the IPO of Facebook flies next to the American flag outside the offices of J.P. Morgan in New York CityNEW YORK/SAN FRANCISCO (Reuters) - Facebook Inc increased the size of its initial public offering by almost 25 percent, and could raise as much as $16 billion as strong investor demand for a share of the No.1 social network trumps debate about its long-term potential to make money. Facebook, founded eight years ago by Mark Zuckerberg in a Harvard dorm room, said on Wednesday it will add about 84 million shares to its IPO, floating about 421 million shares in an offering expected to be priced on Thursday. ...


Analysis: Key to Universal-EMI decision: Has music business lost control?5/16/2012 8:54 AM

U.S. singer Lady GaGa poses with a plaque presented to her by Universal Music Group during a media event for the launch of Singtel's AMPed music service in Singapore June 14, 2009WASHINGTON (Reuters) - On the face of it, Universal Music Group's bid to buy a big chunk of EMI stands to make the world's leading music company an even more formidable force, combining Universal's star lineup of Lady Gaga and Rihanna with the British company's deep library of The Beatles, Pink Floyd and Katy Perry. Certainly the fierce opposition from rival Warner Music Group, consumer groups and independent music companies makes it seem that way. They have all vowed to fight it tooth and nail, telling U.S. ...


Shareholders sue JPMorgan Chase over trading loss5/16/2012 8:28 AM

The JP Morgan Chase & Co. headquarters is pictured in New YorkNEW YORK (Reuters) - JPMorgan Chase & Co was the target of two separate lawsuits by shareholders on Wednesday, accusing the bank and its management of excessive risk that led to trading losses of at least $2 billion. A spokesman for JPMorgan Chase declined to comment on the lawsuits, which were filed in U.S. District Court in Manhattan, days after Chief Executive Jamie Dimon's May 10 statement that a "failed hedging strategy" caused the massive loss over the last month. ...


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