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BUSINESSFriday 4 December 2015
Markets slide in US, EU after stimulus falls short Google ups ante,
doubling its bet on
KEN SWEET with a thud on Thursday. the ECB, Mario Draghi, has percent against the dollar, renewable energy
AP Business Writer The ECB announced a been far more aggressive a large move for curren-
NEW YORK (AP) — Global slight cut in one of its key than his predecessors in cies, to $1.0975. Investors MICHAEL LIEDTKE
markets sank Thursday af- interest rates in an attempt trying new ways to boost had been betting against Associated Press
ter the European Central to stimulate lending and the economy, includ- the euro ahead of the an- SAN FRANCISCO (AP) —
Bank announced stimu- help a modest economic ing its current program of nouncement, expecting Google is nearly doubling
lus plans that came up recovery. Investors had negative interest rates and that more central bank the amount of renewable
short of what investors had expected to see the ECB bond buying. Expectations stimulus would put pressure energy feeding its mas-
on the currency. Investors sive data centers that en-
Specialist Frank Masiello, left, and trader Tommy Kalikas work on the floor of the New York Stock had to unwind those po- able more than 1 billion
sitions, causing Thursday’s people to search for infor-
Exchange. Global markets sank Thursday after the European Central Bank announced stimulus oversized moved in the mation, watch video clips
currency market. and communicate virtually
plans that came up short of what investors had forecast. (AP Photo/Richard Drew) “People aren’t sure where anytime they want.
to put their money so ev- The long-term commit-
forecast. The bond mar- step up its monthly pur- were high for this week’s eryone just went to cash,” ments announced Thurs-
ket was especially roiled chases of bonds as well. meeting. said J.J. Kinahan, chief day cover up to 842 mega-
by the ECB’s move. Bond “Financial markets were “In the last couple of years, strategist at TD Ameritrade. watts of power that will
prices in the U.S. and Eu- expecting the ECB to do Mario Draghi and the ECB European stocks also had flow from six different wind
rope fell sharply, and yields ‘whatever it takes’ to stim- would typically over-deliv- one of their worst days in and solar power projects
jumped. ulate inflation, and instead er on what they indicated months. Germany’s DAX scheduled to be finished
The Dow Jones indus- the ECB did ‘maybe what they would do to help plunged 3.6 percent, its within the next two years
trial average lost 252.01 it’ll take’ to stimulate infla- stimulate the economy. biggest drop since Sep- in the U.S., Chile and Swe-
points, or 1.4 percent, to tion,” said Guy LeBas, head So a lot of investors over- tember. France’s CAC-40 den. Google isn’t disclos-
17,477.67. The Standard & of fixed income at Janney bought bonds on expec- index lost 3.6 percent and ing how much it expects to
Poor’s 500 index fell 29.89 Montgomery Scott. tations that Draghi would the U.K.’s FTSE lost 2.3 per- pay for the power.
points, or 1.4 percent, to Europe’s economy has over-deliver. This time, he cent. Some of the deals were
2,049.62 and the Nasdaq lagged behind the U.S. didn’t, and he disappoint- With the ECB not expand- signed several weeks ago,
composite fell 85.70 points, since the financial crisis, ed the market quite a bit,” ing stimulus as much as ex- but Google timed its an-
or 1.7 percent, to 5,037.53. and policymakers have said Bob Michele, head pected, European bond nouncement to coincide
The selling pushed the S&P struggled to keep the 19 of global fixed income at prices fell sharply, sending with the U.N. conference in
500 back into the red for countries that use the euro JPMorgan Asset Manage- yields higher. If the ECB Paris that is exploring ways
2015. from falling into deflation ment. had announced more to reduce the volume of
The ECB’s stimulus plans, or an economic contrac- The ECB’s announcement stimulus, it would have had carbon emissions widely
long awaited, came in tion. But the President of caused the euro to jump 3 the effect of putting down- believed to be changing
ward pressure on interest the Earth’s climate.
rates. The yield on the 10- “It’s an opportune time
year German government to make a strong state-
bond soared 0.20 percent- ment,” said Gary Demasi,
age points to 0.67 per- Google’s director of data
cent, a massive move in center energy.
the bond market. The yield Google has now signed
on the 10-year French gov- contracts covering 2 giga-
ernment bond rose 0.20 watts of renewable ener-
percentage points to 0.99 gy, putting the company
percent, also a substantial closer to its goal of hav-
move. ing 3.6 gigawatts lined up
The sell-off in the dollar by 2025. The 2 gigawatts
also impacted U.S. Trea- currently under contract is
suries. The yield on the 10- enough to supply 2 million
year Treasury note jumped European homes annually,
to 2.32 percent, up sharply based on Google’s esti-
from 2.18 percent the day mate that the renewable
before.q energy projects will gener-
ate an average of about
NRG Energy CEO Crane resigns, COO named leader 7.4 billion kilowatt hours of
power. The Mountain View,
The Associated Press served as CEO since 2003, said then in a statement NRG Energy produces, California, company has
NRG Energy shares rose a year before Gutierrez from the company that sells and delivers energy pledged to have all of its
Thursday after the power joined the Princeton, New it was creating value for and operates in New York, 14 data centers worldwide
company announced the Jersey-based company. shareholders by stream- Chicago, Houston and running on renewable en-
resignation of long-time The company offered no lining its fleet of generat- Washington, D.C., among ergy as part of its quest
CEO David Crane and reason in a brief state- ing stations. He said the other major markets. to minimize the pollution
named a replacement. ment announcing Crane’s moves were part of an NRG Energy shares rose 19 caused by the rising de-
The company said Crane resignation. “ongoing and deliberate cents, or 1.8 percent, to mand for its Internet search
stepped down imme- Shares of NRG Energy fell strategy of portfolio opti- $10.98 in midday trading engine, YouTube video ser-
diately, and he will be to a 10-year low after the mization.” after climbing as high as vice, Gmail, digital maps
replaced by Executive company said Tuesday Last month, the company $11.65 earlier in the day. and other services.
Vice President and Chief that it agreed to sell pow- also announced third- The power company’s Google, part of a recently
Operating Officer Mauri- er plants in Pennsylvania quarter earnings that fell stock is down almost 63 formed company called
cio Gutierrez. Crane had and New Jersey. Crane well short of expectations. percent in the past year.q Alphabet Inc., still has a
long way to reach that
goal.q
