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BUSINESSWednesday 12 August 2015
Wall Street, oil sink after China currency move EU BIZ BRIEFS
STEVE ROTHWELL per and other commodity age lost 212.33 points, or sales from China. The com- Administrators
AP Business Writer prices fell as traders antici- 1.2 percent, to 17,402.84. pany said last month that picked for Dutch
NEW YORK (AP) — A move pated weaker demand The Nasdaq composite in- it was expecting a strong Royal Imtech NV
by China’s government to from China. That led to big dex fell 65.01 points, or 1.3 second-half of the year in
devalue its currency set off drops energy and materi- percent, to 5,036.79 China. Yum fell $4.28, or 4.9 THE HAGUE, Netherlands
a sharp sell-off in global fi- als stocks. Companies that The Chinese government percent, to $83.54. (AP) — A Dutch court is al-
nancial markets Tuesday derive a large part of their allowed the yuan to fall 1.9 Apple, another company lowing struggling industrial
as investors worried about sales from China, like Ap- percent, the biggest one- that makes a lot of money services group Royal Im-
the health of the world’s ple and Yum Brands, also day drop in a decade. In in China, dropped $6.23, or tech NV to suspend pay-
5.2 percent, to $113.49 and ments and has appointed
Trader Richard Deviccaro, center, works on the floor of the New York Stock Exchange. A move Wynn Resorts, which gen- administrators to a compa-
by China’s government to devalue its currency set off a sharp sell-off in global financial markets erates more than half of its ny battling for survival.
Tuesday as investors worried about the health of the world’s second-largest economy. revenue from the Chinese Imtech, which has 22,000
gambling hub of Macau, staff worldwide, provides
(AP Photo/Richard Drew) slipped $2.39, or 4.3 per- technical services to proj-
cent, to $54.36. ects such as the new Berlin
second-largest economy. fell sharply. recent months, the yuan The price of oil had an- airport. It hit financial hard
China’s government said “China is the second-larg- has strengthened along other big drop, closing at times after being rocked by
the move to weaken the est economy in the world, with the U.S. dollar, hurting its lowest level in six years. fraud scandals in Germany
yuan was a result of re- and they are certainly go- Chinese exporters. China’s Oil prices also fell after and Poland. The company
forms intended to make ing through a stage right exports fell by an unex- OPEC said its production said in a statement Tuesday
its exchange rate more now where growth is not pectedly large 8.3 percent increased to a 3-year high, that suspending payments
market-oriented. However, as robust as it has been,” in July. The yuan was val- adding further evidence of “may optimize the chanc-
most investors interpreted said Michael Scanlon, a ued at 6.32 per dollar on a global supply glut. U.S. es that substantial parts
the action as an attempt managing director at John Tuesday, compared with crude fell $1.88 to settle at of the Imtech Group may
by authorities to stimulate Hancock Asset Manage- 6.21 per dollar a day ear- $43.08 a barrel in New York, continue in the interest of
a slowing economy. A ment. “China is one of the lier. its lowest close since March all stakeholders and specif-
cheaper yuan will benefit biggest risks to the equity Yum Brands, the owner of 2009. Brent crude, a ically our employees.” The
China’s exports by making market as a whole.” of the KFC and Taco Bell benchmark for internation- announcement came less
them less expensive over- The Standard & Poor’s 500 chains, was among the al oils used by many U.S. than a week after Imtech’s
seas. index fell 20.11 points, or 1 biggest decliners in the S&P refineries, fell $1.23 to close German division filed for
The move triggered a percent, to 2,084.07. The 500. The fast-food compa- at $49.18 in London. insolvency. Imtech shares
wave of selling. Oil, cop- Dow Jones industrial aver- ny gets more than half of its The losses for stocks on have slumped nearly 90
Tuesday wiped out a large percent on the Amsterdam
part of the gains from a stock exchange in the last
day earlier, when the mar- five days to just 32 cents
ket logged its largest ad- ($0.35) by late Tuesday
vance in three months as morning.
the price of oil logged a
big gain and some corpo- Optimism about
rate deal news boosted in- German economy
vestor sentiment.
Investors shouldn’t be too declines again
worried by the big moves
in market prices, said Da- FRANKFURT, Germany (AP)
vid Kelly, chief Global Strat- — A key poll of investment
egist at JPMorgan Funds, analysts shows their out-
because the moves were look for the German econ-
likely being exacerbated omy has slipped for the fifth
by low trading activity dur- month in a row because
ing the summer months.q of doubts that growth will
improve much. The ZEW
Symantec to sell Veritas business for $8B in cash indicator of economic sen-
timent fell to 25.0 points in
MOUNTAIN VIEW, Calif. for the last quarter. Symantec had previously its quarterly cash dividend August from 29.7 points the
(AP) — Symantec will sell its The Mountain View, Cali- announced plans to sepa- at 15 cents per share. month before. Despite the
Veritas information man- fornia, company said Tues- rate into two companies Companies often say decline, the index remains
agement business for $8 day that the private equity last fall. share repurchases help near its long-term average
billion in cash with plans to investment firm The Carlyle “We applaud the sale,” shareholders, because of 24.9, meaning the out-
funnel proceeds back into Group and Singapore’s said FBR Capital Markets theoretically they cut look is still upbeat for Eu-
its main line of work, cyber- sovereign wealth fund, analyst Daniel Ives, in a down on the total num- rope’s biggest economy,
security, and to buy back GIC, will acquire the busi- note to investors. But he ber of shares and thus which is enjoying low un-
shares. ness in a deal expected to added that Symantec boost earnings per share. employment and respect-
The move was cheered close Jan 1. “has its work cut out” as it But critics say that repur- able growth. ZEW head
by analysts who said the Symantec Corp. antici- seeks to resume growth in chases don’t usually lower Clemens Fuest said Tues-
under-performing division pates receiving about $6.3 coming months. the number of shares out- day that while the German
was a drag on the compa- billion in net proceeds. It The company also an- standing because com- economy remains in rela-
ny. But Symantec’s stock said the sale will give it a nounced Tuesday that its panies can also issue more tively good shape, “under
tumbled more than 6 per- financial foundation to board approved a $1.5 shares, and buybacks also the current geopolitical
cent after the company expand its computer-se- billion increase in its share divert money that might and global economic cir-
reported revenue and curity business and return buyback program, and it be spent on new infra- cumstances a substantial
earnings below estimates capital to shareholders. has decided to maintain structure or hiring.q improvement” can’t be
expected.q
