Page 25 - ARUBA TODAY

BUSINESS Wednesday 21 June 2017
A25
Oil’s slide to lowest price of the year pulls stocks lower

cents to $46.02 per barrel. ing. Lower oil prices would
The price of oil has been undercut profits for energy
sloshing between $40 and stocks, but they should also
$55 per barrel for much of help other industries that
the last year, down from a will be paying lower fuel
peak of more than $110 in bills. And as long as profits
the summer of 2013. Drill- continue to rise, Manley
ers have gotten much bet- says stocks can too.
ter at pulling oil from the “Earnings are starting to
ground, which has helped re-accelerate,” he said. “It
supplies to balloon and may stop tomorrow, and if
correspondingly weighed it does, well, I’ll change my
on prices. Many oil-produc- mind tomorrow. But right
ing countries have banded now, earnings are grow-
together to cut production ing.”
in hopes of limiting supplies, Tuesday’s slump for oil led
but analysts are skeptical shares of Transocean to
about how much they can drop 36 cents, or 4.2 per-
influence prices. cent, to $8.20 and Mara-
One of the main reasons thon Oil to lose 43 cents, or
for the stock market’s 3.4 percent, to $12.06.
climbing to record after re- The worst-performing stock
cord this year has been the in the S&P 500 was Chipo-
Trader Timothy Nick, left, and specialist Robert Tuccillo work on the floor of the New York Stock Ex-
change. U.S. stock indexes retreated from their record heights Tuesday after a slump in the price resurgence in profit growth tle Mexican Grill, which lost
of oil weighed on energy companies. for big companies, and the $33.31, or 7.3 percent, to
(AP Photo/Richard Drew) energy sector is expected $425.60 after analysts cut
to play a leading role in their profit estimates for the
By STAN CHOE or 0.3 percent, to 21,467.14. five stocks dropping on the that. Analysts forecast en- restaurant chain. Chipo-
AP Business Writer Both the S&P 500 and Dow New York Stock Exchange ergy companies in the S&P tle said marketing costs
NEW YORK (AP) — U.S. set records on Monday for every two that rose. 500 will report better than will eat up a slightly bigger
stock indexes retreated thanks to big gains from Many of the sharpest de- 300 percent growth in their percentage of revenue
from their record heights technology stocks. clines were concentrated earnings per share this year. this quarter than in the first
Tuesday after a slump in The Nasdaq composite lost in the energy sector, as the But if the price of oil keeps three months of the year.
the price of oil weighed on 50.98 points, or 0.8 percent, price of oil touched its low- dropping, that’s at risk. On the opposite end was
energy companies. to 6,188.03, and the Rus- est price since mid-Novem- John Manley, chief equity homebuilder Lennar, which
The Standard & Poor’s 500 sell 2000 index of small-cap ber.Benchmark U.S. crude strategist at Wells Fargo rose $1.13, or 2.1 percent,
index fell 16.43 points, or 0.7 stocks fell 15.11, or 1.1 per- lost 97 cents, or 2.2 percent, Funds Management, is still to $53.87 after reporting
percent, to 2,437.03, and cent, to 1,402.97. to settle at $43.23 per bar- optimistic that expecta- stronger revenue and earn-
the Dow Jones industrial Losses were widespread rel, and Brent crude, the in- tions for earnings across ings for the latest quarter
average lost 61.85 points, across the market, with ternational standard, fell 89 the market can keep ris- than analysts expected.q
Barclays, former CEO charged with fraud over Qatar deal

By DANICA KIRKA Qatar.The charges are the “Skeletons seem to be The bank’s shares fell 1.9 and the fees payable un-
Associated Press first in Britain against a bank jumping out of lots of clos- percent in London.Barclays der both were not included
LONDON (AP) — British reg- and former executives for ets at once for Barclays,” says it disclosed the first ad- in public documents, ac-
ulators charged Barclays activities during the 2008 said Laith Khalaf, senior visory service agreement cording to a statement re-
bank and four former ex- financial crisis. They are a analyst at Hargreaves with Qatari investors that leased in September 2013,
ecutives, including then- blow to current CEO Jes Lansdown. “The spectacle was reached in June 2008, when the bank was selling
CEO John Varley, with con- Staley, who is trying to re- of former executives being but the second agreement more shares. q
spiracy to commit fraud build Barclays’ reputation paraded through court will
when they asked Qatar for after a series of scandals. do nothing to strengthen
a cash infusion to avoid a The bank is already facing the credentials of the bank
government bailout at the litigation from the U.S. De- as it continues to try to ex-
height of the financial crisis partment of Justice and a ecute its turnaround plan.”
in 2008.The Serious Fraud Financial Conduct Authori- Barclays said it is “con-
Office announced the ty probe of allegations that sidering its position” and
charges Tuesday following Staley tried to uncover the “awaits further details of
an investigation into two identity of a whistleblower. the charges from the SFO.”
rounds of fundraising from
Qatar in June and Oc-
tober of 2008. The probe
centered on two side
agreements under which
Barclays paid the Qatari in-
vestors 322 million pounds
($406 million) over five
years, the bank disclosed
in 2013.The question at the
heart of the case is wheth-
er Barclays hid from au-
thorities and other share-
holders the true nature of
the fundraising plan with