Cyprus bailout drama drags down stocks. Learn more about this and other of the day's top news stories
Cyprus Bailout Drags Down U.S. Stocks
The S&P 500 Index yesterday came within one point of its record high of 1,565.17, set in October 2007, before falling on concerns over the effects of the Cyprus bailout on other euro zone nations, Bloomberg News reports. The S&P fell 0.3 percent to close at 1,551.69 and the Dow Jones Industrial Average fell 0.4 percent to close at 14,447.75.
Bernanke Defends Stimulus Efforts
Chairman Ben Bernanke said Monday that the Federal Reserve's low-interest-rate policies are helping to boost the global economy, the Associated Press reports. Last week, the Fed stood by its policies to keep borrowing costs at record lows, saying the U.S. economy still required the support to help lower high unemployment. In a speech yesterday at the London School of Economics, he deflected criticism that the low interest rate policies could lower a country’s currency value. “Because stronger growth in each [advanced] economy confers beneficial spillovers to trading policies, these policies are not 'beggar-thy-neighbour' but rather 'enrich-thy-neighbour' actions," Bernanke said.
Yahoo Acquires Summly
Summly, a mobile news aggregator, is Yahoo Inc.’s latest acquisition aimed at improving mobile services, Retuers reports. Summly, founded two years ago by a 17-year-old Londoner, sorts and delivers snippets of news to smartphone users. The venture was backed by Chinese investor Li Ka-Shing, and angel investors such as Ashton Kutcher and Yoko One. Anonymous sources put the deal at $30 million. Yahoo indicates it will integrate the app’s technology to improve its delivery of news, weather, stock, finance and other information to mobile devices.
Ford India Apologizes Over Ad
Ford India and The WPP Group, a British advertising agency, issued an apology yesterday for a Ford Figo compact ad depicting gagged and bound women driven by a caricature of Italian Prime Minister Silvio Berlusconi, USA Today reports. The tagline read, “Leave your worries behind with Figo’s extra-large boot.” Similar ads - the work of JWT India, a subsidiary of WPP - depict Paris Hilton abducting the Kardashian sisters and Michael Schumacher, a formula one driver, driving off with competitors. Ford said the ads were unauthorized and violated its “standards of professionalism and decency.”
Rajaratnam Sibling Pleads Not Guilty to Insider Trading
Rengan Rajaratnam, the younger brother of imprisoned hedge fund manager Raj Rajaratnam, pleaded not guilty on Monday to insider trading charges, Reuters reports. Prosecutors last week accused him of conspiring with his older brother to trade on non-public information concerning Clearwire Corp and Advanced Micro Devices Inc. in 2008. Rengagn was a portfolio manager at the hedge fund Galleon Group, and the trades for which he was charged resulted in nearly $1.2 million of illegal profit, prosecutors allege. He was charged with six counts of securities fraud and one count of conspiracy, and faces up to 20 years in prison on each of the fraud counts. Rengan’s lawyers said that he learned through the media that he had been charged and volunteered to return to the United States from Brazil, where he is living. He was arrested at New York’s John F. Kennedy International Airport and remains free on a $1 million bond.
Apple Buys WiFi Start-Up
In a bid to bolster its own mapping and location capabilities, Apple has bought WiFiSLAM, a startup that has been developing a way to use WiFi hotspots to help smartphones navigate large indoor spaces, like stores, airports and conference centers, The Associated Press reports. The Wall Street Journal reported the purchase, which it put at $20 million, over the weekend. Apple confirmed the purchase Monday but did not say how much it paid or why it wanted WiFiSLAM, the AP said.