Page 24 - Aruba Today

A24
BUSINESSFriday 8 April 2016
Wall Street takes biggest loss in 6 weeks
MARLEY JAY
AP Markets Writer
NEW YORK (AP) — U.S.
stocks sunk to their big-
gest loss in a month and
a half Thursday as banks
and technology compa-
nies tumbled. Interest rates
moved lower, hurting finan-
cial stocks. The dollar con-
tinued to fall compared to
Trader Gregory Rowe, left, works on the floor of the New York Stock Exchange. .S. stocks sunk to
their biggest loss in a month and a half Thursday as banks and technology companies tumbled.
the Japanese yen. Stocks
have fallen three out of
four days this week.
Stocks sharply reversed
course after their gains a
day ago. Financial com-
panies including Goldman
Sachs and Citigroup took
the largest losses.
Technology and telecom-
munications companies
also fell.
The market has lost mo-
mentum over the last few
weeks after a furious rally
that wiped out most of its
losses from early 2016. Scott munications companies
Wren, senior global equity
strategist for Wells Fargo’s
Investment Institute, said
stocks are rising and falling Wynn Resorts jumped
based on how investors ex-
pect the global economy
to do.
“People are worried about
growth today,” he said.
“You’re not getting much
more than modest eco-
nomic activity.”
The Dow Jones industrial
average fell 174.09 points,
or 1 percent, to 17,541.96.
The Standard & Poor’s 500
index shed 24.75 points, or
1.2 percent, to 2,041.91.
The Nasdaq composite in-
dex lost 72.35 points, or 1.5
percent, to 4,848.37.
Financial companies fell
sharply. Goldman Sachs
slid $4.78, or 3.1 percent,
to $150.41 and Citigroup
lost $1.59, or 3.8 percent,
to $40.27 while JPMorgan
Chase dipped $1.49, or 2.5
percent, to $57.32. Wren
said banks are struggling
because economic growth
is sluggish and interest rates a barrel in London.
remain low, which means
they can’t make as much
money from lending.
“Interest rates aren’t go-
ing to do what banks really
need them to do,” he said.
eBay led tech stocks lower
as it fell $1.33, or 5.2 per-
cent, to $24.10 and Apple
gave up $2.42, or 2.2 per-
cent, to $108.54. Telecom-
continued to struggle. Ve-
rizon fell $1.52, or 2.8 per-
cent, to $52.
$10.44, or 11.7 percent, to
$99.99 after the hotel and
casino company proposed
a new development. Wynn
said it wants to build a rec-
reational lake and hotel
behind its Wynn Las Vegas
property.
U.S. government bond
prices rose. The yield on the
10-year Treasury note fell
to 1.69 percent from 1.76
Las Vegas Sands antes up $9M to
settle corruption charge with SEC
percent. The dollar contin-
ued to weaken against the MICHAEL LIEDTKE
yen, and is now at its lowest AP Business Writer
compared to the yen in al- Las Vegas Sands is paying a $9 million fine to settle a
most a year and a half. On regulatory investigation that painted an unflattering
Thursday it fell to 108.24 yen picture of the casino owner’s expansion into a gam-
from 109.62 yen. The euro bling mecca in China.
declined to $1.1377 from The resolution announced Thursday closes a Securities
$1.1410. and Exchange Commission probe that began more
Benchmark U.S. crude fell than five years ago.
49 cents, or 1.3 percent, The corruption case revolved around Las Vegas Sands’
efforts to become a major player in Macao, an en-
clave in China that has turned into a gold mine for U.S.
casinos.
The SEC penalized Las Vegas Sands for its dealings with
(AP Photo/Richard Drew) a consultant paid $62 million to serve as a “beard” for
some of its business in Macao and Beijing. The inquiry
to $37.26 per barrel in New concluded some payments weren’t properly autho-
York. Brent crude, used rized or documented.
to price international oils, Las Vegas Sands Corp. neither admitted nor denied
dropped 41 cents to $39.43 any of the SEC’s findings. The company, controlled by
billionaire Sheldon Adelson, had conceded in its 2012
Wholesale club opera- annual report that it had probably violated the book-
tor Costco declined after keeping and controls provisions of the Foreign Corrupt
the company disclosed Practices Act that prohibits overseas bribery.
its March sales. Its stock Although the SEC didn’t accuse Las Vegas Sands of re-
fell $4.74, or 3 percent, to sorting to bribery, its conclusions depicted a company
$152.03. Retailer Ollie’s Bar- willing to go to extreme lengths to establish itself in Chi-
gain Outlet Holdings traded na. The company now generates most of its revenue in
higher after it announced Macao, a former Portuguese colony where Las Vegas
solid quarterly results. The Sands operates four casinos and a variety of hotels.
stock climbed $2.34, or 10.3 The SEC alleges Las Vegas Sands violated anti-corrup-
percent, to $25.04. tion laws shortly after it connected in 2006 with an un-
HanesBrands said it will buy identified consultant claiming to be a former Chinese
Champion Europe. Hanes- government official.
Brands owns Champion The next year, Las Vegas Sands used the consultant to
and the deal gives it control conceal its purchase of a Chinese basketball team to
of a company that owned play in the Venetian Macao’s arena — a Las Vegas
the Champion trademark Sands property — in hopes of luring more gamblers to
in Europe as well as the its casino, according to the SEC. The agency alleged
Middle East and Africa. It Las Vegas Sands needed a “beard” to buy the team
recently made a similar because the Chinese Basketball Association prohibit-
deal in Japan unit as well. ed its franchises from being owned by gambling com-
The underwear, T-shirt and panies.
sock maker’s stock added Some of the payments made to the consultant for
77 cents, or 2.8 percent, to the basketball deal were initially recorded as “bank
$27.87. charges and loan,” the SEC discovered.
ConAgra Foods added 66 Las Vegas Sands employed the same consultant to
cents, or 1.5 percent, to buy a large building in Beijing that was supposed to
$46.09.q be turned into a business center with a “men’s club” in
the basement, according to the SEC. Las Vegas Sands
planned to name the center after its CEO and open
it in time for the Summer Olympics that were held in
Beijing in August 2008. Adelson sent a letter inviting
then-President George W. Bush to attend the build-
ing’s ribbon-cutting ceremony in early 2008, accord-
ing to the SEC.
The building purchase raised red flags with the SEC
because Las Vegas Sands did the deal without any
research into whether there was a need for a busi-
ness center and various payments to the consultant
who handled the negotiations were mischaracter-
ized as fees for property management and “arts and
crafts.”
The Adelson Center project was abandoned in Sep-
tember 2008.
In its statement, Las Vegas Sands acknowledged the
consultant worked with company executives who
weren’t “sufficiently monitored.” The company later
received a $44 million refund from the consultant as
part of a settlement.q