FINANCIAL MARKETS
Greek standoff weighs on Asian shares, data boosts Japan
TOKYO (AP) — The standoff between Greece and its creditors is weighing on Asian stock markets, but improved economic data and a weak yen is lifting Japanese shares.
Shares were lackluster in many markets after an emergency meeting between Greece’s new government and finance ministers from nations that use the euro ended in a stalemate. Greek officials proposed renegotiating the terms of an international bailout that has imposed years of punishing austerity on the country. There is a risk the standoff could eventually end with Greece defaulting on its debts and leaving the euro common currency.
On Wall Street yesterday the Dow Jones industrial average edged down 6.62 points, or 0.04 percent, to 17,862.14. The S&P 500 closed flat, down 0.06 of a point to 2,068.53 and the Nasdaq rose 13.54 points, or 0.3 percent, to 4,801.18.
The price of oil fell back below $50 a barrel after the Energy Department reported a rise in U.S. crude inventories, which are now at their highest level in at least 80 years.
The dollar rose to 120.33 yen from 120.16 yen in the previous day. The euro dropped to $1.1309 from $1.1319.
ECONOMY-THE DAY AHEAD
Major business and economic events scheduled for today
WASHINGTON (AP) — Investors will have three government reports to mull over today.
The Labor Department will release the number of people who applied for unemployment benefits last week.
Also, the Commerce Department will report on retail sales data for January and business stockpiles in December.
Freddie Mac will release the weekly mortgage rates.
KB HOME-ORDERS
KB Homes says new home orders up 25 percent
NEW YORK (AP) — In a fresh sign of the recovering U.S. housing market, KB Home says its orders for new homes so far in its current quarter jumped 25 percent compared with the same period a year ago.
The homebuilder said that it received 1,499 orders in the period running from Dec. 1 through Feb. 6, up from 1,201 a year earlier. In all, it said its orders were worth $519.2 million, up 26 percent from $413.7 million a year ago.
The numbers are cause for optimism for the upcoming spring home selling season, KB Home CEO Jeffrey Mezger said in a statement.
With mortgage rates low and the U.S. economy improving, the announcement may be a sign that home sales will rise in the coming months.
Last month, the Commerce Department said that new home sales climbed 11.6 percent in December to a seasonally adjusted annual rate of 481,000.
EARNS-TESLA MOTORS
Tesla’s 4Q profit falls on strong dollar, delayed shipments
DETROIT (AP) — Electric car maker Tesla Motors says its fourth-quarter net loss widened to $107.6 million because of the impact of the strong dollar and a delay in shipments of its new all-wheel-drive Model S sedan.
The loss, of 86 cents per share, compared to a loss of $16.3 million, or 13 cents per share, in the October-December period a year ago.
Palo Alto, California-based Tesla says those figures do not reflect its true performance because accounting rules limit how it records revenue for leases. It lost 13 cents per share on an adjusted basis. That missed Wall Street’s forecast of a profit of 30 cents per share, according to FactSet.
Revenue rose to $956.7 million from $615.2 million. Analysts forecast $1.2 billion.
Shares dropped 2 percent to $208.65 in aftermarket trading.
GREECE-BAILOUT
Greek debt talks with eurozone end without breakthrough
BRUSSELS (AP) — Talks between Greece and its creditors in the 19-country eurozone have broken down without agreement.
Following an emergency meeting in Brussels, the two sides failed to even issue a statement early Thursday, a sign that a compromise deal over Greece’s debts is a long way off.
Greece’s new government is seeking changes to the country’s financial bailout which it blames in large part for the country’s economic problems.
The finance ministers will meet again Monday and Greece’s finance minister, Yanis Varoufakis, laid out the hope that progress could be made then.
Jeroen Dijsselbloem, the head of the eurogroup of finance ministers, said detailed proposals weren’t even discussed.
Dijsselbloem said the “ambition was to agree steps but unfortunately we have not been able to do that.”
CONGRESS-KEYSTONE
Congress clears Keystone XL pipeline bill, setting up veto
WASHINGTON (AP) — The Republican-controlled Congress has cleared a bill approving the construction of the Keystone XL oil pipeline. That sets up a confrontation with President Barack Obama, who has threatened to veto the measure.
The House voted 270-152 on Wednesday to send the bill to the president. Neither chamber has enough votes to overcome a veto.
The vote caps weeks of debate on a top priority for Congress after the GOP took control last month. Supporters are already planning on using other means to secure the pipeline’s approval.
First proposed in 2008, the Keystone XL pipeline would connect Canada’s tar sands to Gulf Coast refineries.
Republicans argued it was a jobs bill that would boost energy security. Democrats said it was a gift to the oil industry that would worsen global warming.
PORT LABOR
Partial West Coast port shutdown looms; contract talks stall
LOS ANGELES (AP) — Amid an increasingly damaging labor dispute, 29 West Coast seaports which handle billions of dollars of goods will be mostly closed four of the next five days.
The announcement was made Wednesday by companies that employ dockworkers.
Negotiations for a new contract were to resume Wednesday, but were canceled. The two sides last met Friday.
The employers now say they won’t hire crews to load or unload ships Thursday, Saturday, Sunday or Monday — when they’d have to pay holiday or weekend wages. Instead, smaller crews will focus on clearing already-unloaded containers off dockside yards.
Cargo is struggling to cross the docks amid historically bad levels of congestion. Employers blame crowded docks on longshoremen staging work slowdowns; dockworkers deny slowing down and say companies are exaggerating to cut their shifts.
HASLAMS INVESTIGATION
Judge allows claims to proceed against Pilot Flying J
FRANKFORT, Ky. (AP) — A federal judge has allowed several trucking companies to press claims they were cheated by a truck-stop company owned by Cleveland Browns owner Jimmy Haslam and his family.
The judge also granted Pilot Flying J’s motion to dismiss several other counts against the retailer Wednesday.
U.S. District Judge Amul Thapar dismissed seven of 11 civil claims against Haslam, the company’s CEO, and allowed four others to go forward. Haslam has not been charged with any crime.
The trucking companies claim they were cheated out of fuel rebates and discounts promised by Pilot Flying J, the nation’s largest diesel retailer.
One of the plaintiffs’ attorneys, Leonard Leicht, said the ruling means Pilot’s efforts to delay the case are over. Pilot attorney Aubrey Harwell said the retailer will fight the ongoing claims.
SKOREA-NUT RAGE
Court finds former Korean Air exec guilty in nut rage case
SEOUL, South Korea (AP) — A Seoul court found a former Korean Air executive guilty of violating aviation safety law after a trial that stemmed from her tantrum over how she was served macadamia nuts on a flight.
The court said Thursday that Cho Hyun-ah was guilty of forcing a flight to change its route, the most serious of the charges she faced.
Cho achieved worldwide notoriety after she ordered the chief flight attendant off a Dec. 5 flight, forcing it to return to the gate. She was angered she had been offered macadamia nuts in a bag instead of a dish
The court also found her guilty of obstructing the flight’s captain in the performance of his duties and forcing a crew member off a plane.
A sentence is expected later Thursday.
Prosecutors have called for three years in prison.
CARDBOARD CRACKDOWN
Authorities crack down on cardboard theft in California
FONTANA, Calif. (AP) — Authorities in San Bernardino County are cracking down on the theft of what may look like trash but turns out to be treasure: cardboard.
Investigators at the district attorney’s office have been conducting sunrise surveillance to trail trucks piled high with flattened boxes heading to and from local recycling centers.
So far, they’ve issued two citations for petty theft in a bid to curtail the theft of cardboard from commercial bins, which is a source of recycling revenue for waste hauling companies.
People can collect and recycle cardboard but can’t remove the material from recycling bins.
David Biderman, general counsel for the National Waste & Recycling Association, says his industry loses millions of dollars a year due to cardboard theft.
