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BUSINESSThursday 5 November 2015
Wall Street dips on weakness in energy sector STREET BRIEFS
KEN SWEET Trader Brandon Barb works on the floor of the New York Stock Exchange. Stocks retreated mod- Target is closing 13
AP Business Writer estly Wednesday after comments from Federal Reserve Chair Janet Yellen implied that Fed poli- stores nationwide
NEW YORK (AP) — Stocks re- cymakers are still considering raising interest rates in December. citing falling profits
treated modestly Wednes-
day after comments from (AP Photo/Richard Drew) MINNEAPOLIS (AP) — Tar-
Federal Reserve Chair get plans to close 13 stores
Janet Yellen implied that pace to keep adding jobs go Mercantile Exchange. ments cause the U.S. dollar nationwide, including one
Fed policymakers are still and push annual inflation “Everyone is so focused on to strengthen and oil prices in New Ulm and two others
considering raising interest toward the Fed’s 2 percent the world’s central banks to decline sharply. in Milwaukee and Superior,
rates in December. target, Yellen said. at the moment they don’t Crude oil fell $1.58, or 3.3 Wisconsin. The Minneapo-
Yellen’s comments pushed Once considered an un- seem to care about any- percent, to $46.32 a barrel, lis-based retailer says a de-
the U.S. dollar higher. The likely scenario, a Decem- thing else,” said Colleen reversing after two days of cision to close a store usu-
dollar’s rise had a second- ber rate hike seems more Supran with the San Fran- gains. Brent crude, which is ally follows several years
ary impact of causing oil to likely by the day. Stocks cisco-based wealth man- used to price international of decreasing profitability.
fall, which in turn impacted have recovered nearly all agement firm Bingham, oils, fell $1.96, or 4 percent, The retail giant plans to
oil, gas and energy stocks. of their losses from the sum- Osborn & Scarborough. In- to $48.58 a barrel. close the stores on Jan. 30,
U.S. government bond mer, financial markets have vestors will closely parse the “Today’s sell-off was easily 2016. The 13 are among
prices also fell. calmed in China and else- October jobs report, which definable by some hawk- Target’s nearly 1,800 stores
Media and entertainment where, and the U.S. econo- is due out Friday. Investors ish comments out of (Yel- in the U.S. Target was hurt
stocks were pummeled af- my continues to slowly im- expect that U.S. employ- len) suggestive of a rate by a massive credit-card
ter worrisome comments prove. Securities that allow ers added 185,000 jobs last hike next month,” wrote breach before Christmas
from media conglomer- investors to bet on which month and that the unem- Jim Ritterbusch, with the oil 2013 that sent shoppers
ate Time Warner. The Dow way the Fed will move in- ployment rate remained trading firm Ritterbusch & temporarily fleeing. The
Jones industrial average terest rates are now pric- steady at 5.1 percent. Associates, in a note. Some company also botched a
lost 50.57 points, or 0.3 ing in a roughly 60 percent One of the biggest victims of the biggest gainers on major expansion into Can-
percent, to 17,867.58. The chance of the Fed raising of Yellen’s comments, in- Monday and Tuesday were ada and pulled the plug
Standard & Poor’s 500 in- rates next month, accord- advertently, was oil and among the biggest declin- on that earlier this year.
dex fell 7.48 points, or 0.4 ing to data from the Chica- gas stocks. Yellen’s com- ers on Wednesday. q Layoffs in 2015 included
percent, to 2,102.31 and 2,500 jobs, or about one-
the Nasdaq composite fell fifth of the workers in the
2.65 points, or 0.1 percent, company’s corporate of-
to 5,142.48. During her fices in Minneapolis and
regular semi-annual testi- Brooklyn Park. q
mony to Congress, Yellen
said that an interest rate Maersk says to cut
hike in December would at least 4,000 jobs
be a “live possibility” if the amid demand slide
economy stays on track.
Yellen did stress that no de- COPENHAGEN, Denmark
cision has been made yet (AP) — Maersk Line, the
and a move in December shipping branch of Danish
will depend on how the conglomerate A.P. Moller-
economy fares between Maersk, says it will reduce
now and then. its network capacity, post-
At its Dec. 15-16 meeting, pone investments and re-
the Fed will consider rais- duce its global headcount
ing a key interest rate from by at least 4,000 jobs by
a record low of near zero if the end of 2017. Maersk
the economy continues to Line says it was speeding
grow at a strong enough up already announced
plans to simplify the organi-
Deutsche Bank to pay $258M to settle US violations zation in the light of lower
demand. Company CEO
MICHAEL VIRTANEN managing directors, two di- cessed nearly $11 billion in several years ago, and Soeren Skou said Wednes-
Associated Press rectors and two vice presi- since then we have ter- day in a statement that
ALBANY, New York (AP) — dents. It will pay $200 million payments through its New minated all business with the decisions were “nec-
Deutsche Bank has agreed to the department and $58 parties from the countries essary steps to transform
to pay $258 million to settle million to the Federal Re- York branch from 1999 to involved,” she said. our industry.” Maersk Line
legal problems stemming serve. “We are committed Two weeks ago, the de- currently has 23,000 land-
from U.S. sanctions viola- to investigating and pur- 2006 on behalf of Suda- partment announced a based staff globally. Last
tions, New York regulators suing sanctions violations settlement for more than month, the group’s oil unit,
said Wednesday. and money laundering at nese, Iranian, Burmese, $787 million with Credit Ag- Maersk Oil, said it will cut
Under the settlement, financial institutions,” de- ricole for similar violations. 1,250 jobs this year, reduc-
Deutsche Bank will dismiss partment Superintendent Libyan and Syrian entities, The French bank processed ing its workforce by 10-12
six people, ban three oth- Anthony Albanese said. “To more than $32 billion in percent due to the slump
ers from duties involving truly deter future wrongdo- the department said. Staff payments through its New in oil prices. The Copen-
U.S. operations and install ing, it is important to focus York branch between 2003 hagen-based group plans
an independent monitor, not just on corporate ac- overseas removed some and 2008 on behalf of Su- to present its third quarter
according to New York’s countability, but also indi- danese, Iranian, Burmese earnings on Friday.q
Department of Financial vidual accountability.” identifying information and Cuban entities, regula-
Services. The six are two The German bank pro- tors said. q
before passing U.S. dollar
payments along to the U.S.
branch for clearing, ac-
cording to investigators.
Deutsche Bank was
pleased to reach the reso-
lution, spokeswoman Re-
nee Calabro said Wednes-
day. “The conduct ceased
