After being prompted by the Swiss National Bank, Credit Suisse plans to increase capital by 15.3 billion francs ($15.6 billion) this year. It also plans to cut 1 billion francs in costs by the end of 2013.
To raise additional funds, the bank will sell 3.8 billion francs worth of mandatory convertible notes. All of the measures should help nearly double the bank's capital ratio from where it was at the end of March.
The bank said its plans will not only mean a quick and substantial boost of its loss-absorbing capital but should make it much more resilient.Credit Suisse rose as much as 6.8% following the news. The bank also reported second-quarter net income climbed 2.6% from a year earlier to 788 million francs.
Ericsson (ERIC) is trending as the mobile telecom equipment-maker missed estimates due to slowing network sales. Ericsson reported earnings including restructuring charges of 3.3 billion Swedish crowns ($470.9 million), below forecasts of 3.5 billion Swedish crowns. Net income declined to 1.12 billion crowns ($172 million), also below estimates. Ericsson attributed the results to a slowdown in CDMA equipment sales in North America and reduced business activity in China, Russia and India. Ericsson has about 38% of the mobile network equipment market and is the global leader in the industry. Ericsson CEO Hans Vestberg said the long-term prospects for the company are strong as demand for new network equipment is expected to remain high due to smartphone sales, as well as the struggles the company's competitors are facing. Alcatel-Lucent and ZTE reported weak second-quarter results and issued profit warnings this week.
PayPal is another popular search. The online payment service has acquired Card.io for an undisclosed amount. Card.io offers technology that uses mobile phone cameras to scan credit cards. PayPal, which is owned by eBay (EBAY), already uses the company's technology in its mobile payment service for small businesses, PayPal Here.
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