Financial
Treasury sells $3 billion in Ally Financial stock PDF  | Print |  E-mail
Written by Associated Press   
Thursday, 16 January 2014 14:22

WASHINGTON (AP) — The Treasury Department announced Thursday it plans to sell 410,000 shares of Ally Financial for $3 billion as part of its ongoing effort to recoup the costs of the $700 billion financial bailout.

The shares will be offered in a private offering at $7,375 each.

After the completion of the stock sale, the department said the U.S. government will have recovered about $15.3 billion, or 89 percent of the $17.2 billion it provided to Ally during the financial crisis. The government will still hold about 37 percent of the bank holding company's stock.

Ally Financial received a total of $17.2 billion in government support during the financial crisis. Ally, based in Detroit, makes loans to GM customers and finances dealer inventories. The government first bailed out the company, then known as GMAC Inc., in late 2008 as part of the Bush administration's aid to the auto industry. The Obama administration provided additional funding in May and December 2009.

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CSX warns it will be harder to hit profit targets PDF  | Print |  E-mail
Written by JOSH FUNK, AP Business Writer   
Thursday, 16 January 2014 10:37

OMAHA, Neb. (AP) — CSX railroad is warning that it will be more difficult to reach its own profit targets for double-digit growth over the next two years because of ongoing weak demand for coal and because last year's results were so strong.

CSX said Thursday that the railroad benefited last year from one-time gains from real estate sales and damage payments from utilities that didn't ship enough coal under their contracts.

Chief Financial Officer Fredrik Eliasson says those factors will make it more difficult to deliver on CSX's projected 10 percent to 15 percent growth in earnings per share from 2013 through 2015.

The company's fourth-quarter earnings declined 5 percent to $426 million on $3 billion revenue, which was short of Wall Street expectations.

Company shares are down 7 percent in premarket trading.


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U.S. homebuilder confidence dips in January PDF  | Print |  E-mail
Written by ALEX VEIGA, AP Real Estate Writer   
Thursday, 16 January 2014 11:45

U.S. homebuilders lost a little confidence in the housing market this month but remain generally upbeat ahead of the spring home-selling next season.

The National Association of Home Builders/Wells Fargo builder sentiment index released Thursday dipped to 56. That's down from December's reading of 57, which was revised one point lower from its initial estimate.

Readings above 50 indicate more builders view sales conditions as good, rather than poor.

Builders' view of current sales conditions for single-family homes, their outlook for sales over the next six months and traffic by prospective buyers each declined since December.

Even so, the overall index is nine points higher than a year ago, reflecting a stronger U.S. housing market.

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U.S. consumer prices up 0.3 pct, most in six months PDF  | Print |  E-mail
Written by CHRISTOPHER S. RUGABER, AP Economics Writer   
Thursday, 16 January 2014 10:22

WASHINGTON (AP) — U.S. consumer prices rose last month by the most since June, driven up by higher gas prices, but excluding energy, inflation was tame.

The Labor Department said Thursday that the consumer price index rose a seasonally adjusted 0.3 percent in December, after a flat reading the previous month.

Prices increased 1.5 percent in 2013, down from 1.7 percent in 2012. That's below the Federal Reserve's target of 2 percent.

Gas prices jumped 3.1 percent in December, the biggest gain since June. Food prices ticked up 0.1 percent, pushed up by higher restaurant costs. Grocery prices were flat, held down by the biggest drop in fruit and vegetable prices in five years.

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