Updated from 6:49 a.m. EDT
Here are 10 things you should know for Wednesday, June 11:
1. -- U.S. stock futures were lower and European stocks fell after the World Bank trimmed its global growth forecast.
The World Bank cut its 2014 growth forecast to 2.8% from 3.2%, citing a bitter American winter and the political crisis in Ukraine.
Asian stocks finished the session mixed.
2. -- The economic calendar in the U.S. on Wednesday includes the Treasury budget at 2 p.m. EDT.
3. -- U.S. stocks on Tuesday closed mixed. While the Dow Jones Industrial Average and Nasdaq turned green in the final minutes of trading, the S&P 500 remained in the red, somewhat deflated from record highs set the day before.
The S&P 500 fell 0.2% to 1,950.79. The Dow tiptoed 0.02% higher to 16,945.92, while the Nasdaq added 0.04% to close at 4,338.4. -- The European Union Commission's antitrust regulator is investigating deals that Apple (AAPL - Get Report), Starbucks (SBUX) and Fiat struck with tax authorities in several European countries to see whether they amount to unfair state aid, The Associated Press reported. The multinationals have agreements with tax authorities in Ireland, the Netherlands and Luxembourg as part of their strategy to minimize the taxes they pay. The EU antitrust commissioner, Joaquin Almunia, said Wednesday that while such agreements are permissible in theory, they would be improper if they give the companies involved an advantage over competitors. The companies named have been frequent targets of criticism for paying low taxes in some places they operate. 5. -- Bank of America (BAC - Get Report) and the Justice Department have reached an impasse in negotiations over a multibillion-dollar settlement deal, The New York Times reported.
The talks stalled on Monday after the bank's latest offer -- more than $12 billion to resolve state and federal investigations into its sale of mortgage investments that later imploded -- fell far short of prosecutors' demands, the Times reported, citing people briefed on the matter. The Justice Department, which had imposed a deadline of Monday evening for the bank to deliver its near-final offer, has sought a settlement worth roughly $17 billion, which would be the largest payout by any bank to date, the Times said.
Bank of America shares fell 1.1% in premarket trading to $15.74.
Amazon started refusing pre-orders for the Time Warner movies in mid-May, according to the report.
Amazon's tussle with Warner Bros. is its third standoff with a vendor. Amazon is in an ongoing dispute with Hachette Book Group, a unit of France's Lagardere, over e-book terms.
The stock rose 1.1% in premarket trading to $335.99. 7. -- American International Group (AIG) tapped long-time JPMorgan executive Peter Hancock as its new CEO, choosing a man with scant background in insurance but deep experience in the type of complex financial instruments that forced the giant insurer to take a $182 billion bailout.
Hancock, 55, spent 20 years at the predecessor to what is now JPMorgan Chase (JPM), founding its global derivatives group and rising to chief risk officer and chief financial officer before resigning in 2000.
8. -- Emirates Airlines has canceled its order for 70 Airbus A350 aircraft. The A350 is intended as Airbus' best hope for catching up in the long-haul market that is dominated by Boeing's (BA) 777 and 787 but has been plagued by years of delays and a multibillion dollar revamp. 9. -- Google (GOOG) agreed to buy Skybox Imaging for $500 million in cash, subject to adjustments, as the Web search and mobile software giant tries to bolster its imaging capabilities. The deal, which has been the subject of speculation in media reports, will add Skybox's satellites to Google's highly popular mapping division, creating a new level of accuracy and up-to-date imagery for Google Maps, the company said. Furthermore, Skybox's imaging capabilities may allow Google to enter the arena of disaster relief, an area Google confirmed it has been interested in entering.
10. -- Tax preparer H&R Block (HRB) is forecast by analysts on Wednesday to report fiscal fourth-quarter earnings of $3.23 a share. >> Read More: As Apple Stock Gets Sliced, It's Not Time for Investors to Split
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Super Mario Gabelli of Gamco Is King of M&A, as Hillshire Deal Shows -- Written by Joseph Woelfel To contact the writer of this article, click here:Joseph Woelfel To submit a news tip, send an email to:email@example.com.
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