Investment banks advise sale of emerging market shares

Wall Street’s biggest banks say the slump in emerging-market assets that left equities trailing advanced-nation shares by the most since 1998 last year will prove more than a fleeting selloff. Goldman Sachs Group Inc. recommends investors cut allocations in developing nations by a third, forecasting “significant underperformance” for stocks, bonds and currencies over the next 10 years. JPMorgan Chase & Co. expects local-currency bonds to post 10 percent of their average returns since 2004 in the

Jan. 7, 2014

Global central banks split on stimulus in 2014

The united stimulus front of central banks is starting to splinter as 2014 dawns. The Federal Reserve ― soon to be led by Janet Yellen, who is poised for confirmation by the Senate Monday ― begins pulling back on its quantitative easing amid stronger U.S. growth, and the Bank of England is trying to cool its housing market. The European Central Bank and Bank of Japan lean toward more monetary action to fight weak inflation. The ECB and BOE both hold policy meetings this week. The erosion of the

Jan. 6, 2014

Bitcoin tops $1,000 again as Zynga joins wider usage

The price of Bitcoin surpassed $1,000 again on the Mt.Gox exchange, after Zynga Inc. said it would start accepting the virtual currency for some of its online social games as the digital money becomes more widely used. Bitcoins, which exist as software and aren’t controlled by any country or banking authority, surged to about $1,119 on the exchange Sunday, one of several markets where they are traded for dollars, euros and other currencies. Bitcoins first crossed the $1,000 threshold in late Nov

Jan. 6, 2014

Gold analysts get most bullish in a year after rout

Gold analysts are the most bullish in a year on speculation that investors are reducing near-record bearish bets after the biggest plunge in prices since 1981. Fifteen analysts surveyed by Bloomberg News expect gold to rise this week, two are bearish and four neutral, the highest proportion of bulls since December 2012. Short positions held by hedge funds and other large speculators jumped almost fourfold from October to Dec. 24 as the bear market deepened, the latest U.S. Commodity Futures Trad

Jan. 6, 2014

U.S. auto sales best in 6 years, but demand seen ebbing

DETROIT (AP) ― Automakers are going to have to work a little harder for your business in 2014. After four years of strong sales increases ― and limited discounts ― as the economy improved, U.S. demand for new cars and trucks is expected to slow this year. That could mean better deals for buyers as car companies fight to increase their share of the market. U.S. sales rose 8 percent to 15.6 million in 2013, thanks largely to a surge in pickup truck sales from the home construction and energy indus

Jan. 5, 2014

Boeing machinists OK 777X contract

SEATTLE (AP) ― The stakes were high and the vote was close as Boeing production workers agreed to concede some benefits in order to secure assembly of the new 777X airplane for the Puget Sound region. Washington Gov. Jay Inslee and Boeing hailed Friday’s vote, which proponents said solidifies the aerospace giant’s presence in the Seattle area. “Tonight, Washington state secured its future as the aerospace capital of the world,” Inslee declared. Under the terms of the eight-year contract extensio

Jan. 5, 2014

U.S. Treasury chief to urge Europeans to boost growth

WASHINGTON (AFP) ― U.S. Treasury Secretary Jacob Lew will call on Europeans to boost demand to strengthen economic growth during official visits to France, Germany and Portugal next week, an official said Friday.With the United States still concerned over the weak rebound in Europe, the senior Treasury official said Lew “will focus on the importance of pursuing policies to support the recovery and demand by stretching out the fiscal consolidation path in countries where feasible.”In addition, Le

Jan. 5, 2014

India scraps AgustaWestland chopper deal over alleged bribery

NEW DELHI (AFP) ― India cancelled on Wednesday a 556 million euro ($753 million) contract with Anglo-Italian firm AgustaWestland to buy luxury helicopters for VIPs amid bribery allegations.The deal signed in February 2010 was scrapped after Defense Minister A. K. Antony held a meeting with Prime Minister Manmohan Singh whose Congress-led government has been buffeted by a string of corruption scandals.A defense ministry statement said the government had “terminated with immediate effect the agree

Jan. 2, 2014

Billionaires worth surges as Gates tops list

The richest people on the planet got even richer in 2013, adding $524 billion to their collective net worth, according to the Bloomberg Billionaires Index, a daily ranking of the world’s 300 wealthiest individuals. The aggregate net worth of the world’s top billionaires stood at $3.7 trillion at the market close on Dec. 31, according to the ranking. The biggest gains came in the technology industry, which soared 28 percent during the year. Of the 300 people who appeared on the final ranking of 2

Jan. 2, 2014

Google chief says biggest mistake was missing social networks

Google Inc. Executive Chairman Eric Schmidt said missing the rise of social media was the biggest mistake he made at the world’s largest search-engine operator. “In our defense, we were busy working on many other things but we should have been in that area and I take responsibility for that,” he said in an interview on Bloomberg Television Tuesday. Schmidt led Google as chief executive officer from 2001 until 2011 when he became executive chairman, during which time the Mountain View, California

Jan. 1, 2014

Apple says never worked with NSA

Apple Inc. said it has never worked with the U.S. National Security Agency to provide backdoor access to any of its products, including the iPhone. Apple issued a statement Tuesday, following claims by researcher Jacob Appelbaum that the NSA gathers data from iPhones, including text messages, contact lists, voicemails and location data. “We have been unaware of this alleged NSA program targeting our products,” said Kristin Huguet, a spokeswoman for Apple. “We will continue to use our resources t

Jan. 1, 2014

Gold sees biggest yearly rout since ’81

Gold futures, which reached a six-month low Tuesday, posted the biggest annual slump in three decades as an improving economy cut demand for wealth protection. Silver touched the lowest since July. Bullion futures for February delivery fell 0.1 percent to settle at $1,202.30 an ounce at 1:39 p.m. on the Comex in New York, after touching $1,181.40, the lowest since June 28. Prices fell 28 percent this year. Investors lost faith in the metal as a store of value as equities rallied and an economic

Jan. 1, 2014