Page 25 - aruba today

BUSINESS Tuesday 10 OcTOber 2017
A25
STREET Health care and industrials lead US stocks lower

BRIEFS lost 6.66 points, or 0.4 per-

Official says Air cent, to 1,503.56.
Stock trading was light
Berlin flights will because of the Colum-
end this month bus Day holiday in the U.S.
Bond trading was closed.
BERLIN (AP) — Bankrupt General Electric slipped
German airline Air Berlin after it named Ed Garden
says it’s preparing to end of Trian Fund Management
flights at the end of Octo- to its board of directors.
ber. Trian, a well-known activ-
The dpa news agency re- ist investment firm founded
ported Monday that in a by Nelson Peltz, has been
letter to employees the pushing the conglomer-
airline, Germany’s second ate to slim down. GE lost
largest, said that flights 96 cents, or 3.9 percent,
under the airline code AB to $23.43. It’s down 26 per-
“according to the current cent this year.
state of things, will no lon- GE has announced slew of
ger be possible after Octo- changes in its leadership
ber 28 at the latest.” Flights this month. John Flannery
operated by subsidiaries replaced Jeffrey Immelt
Niki and LG Walter, which Trader Frank O’Connell works on the floor of the New York Stock Exchange. Losses for health care as CEO a week ago, sev-
are not insolvent, will con- companies and banks left U.S. stocks lower Monday after a quiet day of trading. eral months ahead of the
(AP Photo/Richard Drew)
tinue. Air Berlin declared schedule the company
bankruptcy in August fol- By MARLEY JAY nies continued to climb. rail a bill. announced in June. On
lowing years of losses and AP Markets Writer Smaller, more domesti- “There really is not much Friday GE said Chief Finan-
the decision of its biggest NEW YORK (AP) — Losses cally-focused companies leeway there,” said Mona cial Officer Jeffrey Born-
shareholder, Gulf airline for health care companies declined as investors tried Mahajan, U.S. investment stein will leave at the end
Etihad, to cease financ- and banks left U.S. stocks to gauge the odds for tax strategist for Allianz Global of the month.
ing. It’s currently in talks lower Monday after a quiet cuts.Stocks have rallied Investors. Two vice chairs are also
with Lufthansa and Easy- day of trading. Industrial over the last two weeks as “They somehow have to retiring.Health care com-
jet about selling parts of its conglomerate General investors hope tax cuts pro- get their act together.”The panies did worse than the
business. Electric skidded after an- posed by the Trump admin- Standard & Poor’s 500 in- rest of the market.
GM buys laser nouncing more changes in istration and Congressional dex dipped 4.60 points, or Companies that distrib-
its leadership.
0.2 percent, to 2,544.73.
Republicans will boost cor-
ute or sell prescription
firm to speed Companies that distribute porate profits. The Dow Jones industrial medicines or administer
auto research or sell prescription drugs But over the weekend Pres- average shed 12.60 points, prescription drug benefits
tumbled for a second day
or less than 0.1 percent, to
continued to slide following ident Donald Trump en-
speculation that Amazon tered a war of words with 22,761.07. as investors continued to
DETROIT (AP) — General plans to get into that busi- Senator Bob Corker, a re- The Nasdaq composite fell worry about Amazon en-
Motors is buying a small ness, something the com- tiring Republican who has 10.45 points, or 0.2 percent, tering the prescription drug
company that is develop- pany has not confirmed. a reputation as a budget to 6,579.73, which ended business.
ing Laser light sensors for Banks dipped after a big hawk. Republicans have a a nine-day winning streak. Analysts raised that pos-
autonomous cars, a move rally over the last month narrow majority and losing The Russell 2000 index of sibility Friday. Amazon has
the automaker says will and technology compa- just a few votes could de- smaller-company stocks declined to comment.q
speed deployment of self-
driving technology. GM ECB: Banks generally ready for rising rates
says it bought Strobe Inc.,
of Pasadena, California, By DAVID McHUGH rates. constructed based on the the long-term value of their
for a small but undisclosed AP Business Writer The central bank said that years since 2008, which assets, such as investments
sum. Strobe will work with FRANKFURT, Germany (AP) in a hypothetical interest means they are based on in bonds and their mort-
GM’s Cruise Automation — The European Cen- rate shock involving an in- experience from a period gage business.
team in San Francisco to tral Bank says banks un- crease of 2 percentage of falling rates. The ECB’s bank supervi-
develop the next genera- der its jurisdiction appear points, net interest income Deposits are usually one sion division is kept sepa-
tion of laser sensors called well-prepared to face un- would increase by 4.1 per- of the most stable sources rate from its monetary pol-
Lidar. Cruise Automation is expectedly higher inter- cent this year and 10.5 per- of money for banks, and a icy duties, so the stress test
testing autonomous elec- est rates, but may be less cent next. The stress test sudden decision by lots of doesn’t provide any hints
tric Chevrolet Bolt cars on ready for disruption from imagined a sudden over- people to take their money about the bank’s thinking
the streets of San Fran- online banking. night increase. elsewhere could hurt bank on the future course of its
cisco with human backup The ECB’s banking super- That is a highly unlikely sce- finances. rate policy.
drivers. The company says vision division released re- nario, but one which helps That could happen if peo- Currently, the bank is con-
Strobe technology will re- sults Monday of a stress test show whether bank financ- ple chase higher rates else- templating phasing out its
duce the cost of the ve- that showed suddenly rising es are robust. where or get better offers stimulus program over the
hicles while speeding up rates would increase net The ECB concluded that for banking services from course of next year. The
large-scale deployment. interest income, an impor- “interest rate risk is well so-called fintech firms that bank has been buying 60
But GM didn’t say when the tant part of bank finances. managed by most Europe- use mobile banking, peer- billion euros ($70 billion) of
technology would ready Earnings at some banks an banks.” to-peer lending or financial bonds a month in the hope
to carry passengers. Lidar have lagged due to the It warned however that advice dispensed by soft- of keeping market interest
sensors supplement ra- current very low inter- many banks are relying on ware. The ECB said it would rates low, thereby helping
dar and cameras and are est rate environment that questionable models to engage banks in discussion to stimulate the economy
needed for autonomous squeezes the margins be- predict how their deposit about their models. and get inflation up to its
cars to function in condi- tween rates at which banks customers might behave. The study showed that goal of just under 2 per-
tions with poor visibility.q borrow and their lending The models were mostly banks would show losses in cent. q