Thursday's Early Headlines
- U.S. Economy Loses 467,000 Jobs in June. - The Labor Department said nonfarm payrolls fell 467,000 in June, worse than expectations of a 375,000 drop. The unemployment rate swelled to 9.5% from the 9.4% reported in May.
- Treasury to Name PPIP Managers. - The Treasury Department may name on Thursday as many as nine investment managers to operate funds that will buy toxic securities from financial institutions, according to The Wall Street Journal. The department received more than 100 applications from firms wanting to operate investment funds for the government. The list was narrowed down to 12 to 15, according to the report.
- Boeing in Talks to Buy Dreamliner Fuselage Factory From Supplier. - Boeing (BA) is in negotiations to purchase operations from one of its main suppliers, as part of an effort to gain more control over the supply chain of its troubled 787 Dreamliner program, according to a report in The Wall Street Journal that cites a person familiar with the matter. The company is close to announcing that it will buy a facility from Vought Aircraft Industries that makes sections of the 787 fuselage. Terms of the deal were unknown, according to the report.
- GMAC Becomes a Corporation. - GMAC said on Wednesday that it has converted to a corporation from a limited liability company. In a regulatory filing, the Detroit-based company said holders of common membership interests in the former GMAC LLC on Tuesday received an equal number of common shares in GMAC.
- ECB Leaves Rates at 1%. - The European Central Bank kept interest rates steady as it rolls out new tools, Bloomberg reported. ECB officials meeting in Luxembourg held the benchmark rate at a record low of 1%, as expected. The ECB last week lent banks a record 442 billion euros ($621 billion) for 12 months at its key rate in the hope they will pass on cheaper credit to companies and households, the report said.
- Lear to Seek Chapter 11 Bankruptcy Protection. - Auto parts supplier Lear (LEA) said it is preparing to file for Chapter 11 bankruptcy protection and has lined up financing to fund its operations while under court protection.
- Exelon Raises Bid for NRG. - Exelon (EXC) has sweetened its offer for NRG Energy (NRG) in its ongoing hostile bid to take over the company, upping its offer to 0.545 of its own shares for each NRG share in the all-stock transaction. The deal is now valued at more than $7.4 billion. Exelon initially offered an exchange ratio of 0.485 last fall.
- SEC Lawyer Raised Alarm About Madoff in 2004. - A U.S. Securities and Exchange Commission lawyer warned about irregularities at Bernard Madoff's financial management firm as far back as 2004, The Washington Post reported on Thursday, citing agency documents and sources familiar with the investigation. The newspaper said the SEC staffer raised concerns about Madoff but, at the time, the SEC was under pressure to look for wrongdoing in the mutual fund industry. The lawyer was told to focus on a separate probe into mutual funds, the report said.