Cyprus' banks to reopen with some capital controls
NICOSIA, Cyprus (AP) — All banks in Cyprus except the two largest will reopen for business Tuesday — more than a week after they shut down to prevent a run by customers — now that the country has clinched a vital bailout deal.
The central bank will impose some limits on financial transactions, the country's president, Nicos Anastasiades said, but he assured the public that restrictions would be temporary.
The decision that banks would reopen came after an eleventh-hour deal to provide Cyprus with an international bailout was clinched in the early hours of Monday in a Brussels meeting between the 17-nation eurozone's finance ministers.
Top EU official: Cyprus bank rescue new template
BRUSSELS (AP) — Inflicting losses on banks' shareholders, bondholders and even large depositors should become the 17-country eurozone's default approach for dealing with ailing lenders, a top European official said Monday.
Banks' owners and investors must be held responsible "before looking at public money or any other instrument coming from the public side," said Jeroen Dijsselbloem, who chairs the Eurogroup gatherings of the 17 eurozone finance ministers.
The eurozone countries and the International Monetary Fund earlier Monday granted Cyprus a 10 billion euro ($13 billion) bailout that foresees dissolving the country's second-largest bank, wiping out its bondholders and inflicting significant losses — possibly up to 40 percent — on all deposits larger than 100,000 euros.
Dell board will deal with Icahn, Blackstone
Michael Dell may have to hike the price he's willing to pay if he wants to take the computer company he founded private, thanks to competition from two new bidders.
A special committee of independent Dell Inc. directors said Monday that it will negotiate with buyout specialist Blackstone Group and activist investor Carl Icahn over bids that rival an offer of more than $24 billion from CEO and Chairman Michael Dell and Silver Lake Partners.
The committee has determined that the bids could be superior to the proposal from Dell and Silver Lake, which amounts to $13.65 per share.
Bernanke: Low interest-rate-policies benefit trade
WASHINGTON (AP) — Chairman Ben Bernanke said Monday that the Federal Reserve's low-interest-rate policies are helping to boost growth around the world, rejecting criticism that they could lead to a global currency war.
In a speech at the London School of Economics, Bernanke staunchly defended the Fed's policies and similar stimulus efforts pursued by other central banks since the 2008 financial crisis.
Last week the Fed stood by its policies to keep borrowing costs at record lows, saying the U.S. economy still required the support to help lower high unemployment.
J&J recalls all OneTouch Verio blood sugar meters
Johnson & Johnson is recalling all its OneTouch VerioIQ blood glucose meters in the U.S. because they do not provide a warning when a diabetic's blood sugar level is dangerously high. Instead, at a certain sugar level, the meters turn off.
The meters are made by J&J's LifeScan unit, which will issue a free replacement meter to all patients.
The company says the meters shut down when a patient's blood sugar hits 1,024 milligrams per deciliter. That's an extremely high level requiring immediate medical attention.
Ford India apologizes over Berlusconi bondage ad
MUMBAI, India (AP) — The Indian unit of Ford Motor Co. has apologized for advertisements decried as demeaning to women, including one depicting Italy's former Prime Minister Silvio Berlusconi with a trio of bound women in the trunk of a car.
A Ford India spokeswoman said Monday that the company is investigating whether anyone at the automaker ever saw the print ads, which were never used commercially but appeared over the weekend on a website showcasing creative advertising.
The ads caused an uproar online and came just after India passed a new law on violence against women following a fatal gang rape of a student on a bus that prompted mass protests and spotlighted the status of women in India.
Boeing 787 makes test flight to check battery
SEATTLE (AP) — A Boeing 787 took off from Seattle Monday on a test flight to see if a redesigned battery system works properly while the plane is in the air.
The test flight is an important step in Boeing's plan to convince safety regulators to allow airlines to resume using the plane, which the company calls the Dreamliner.
Boeing filed a flight plan shortly before the plane took off from Paine Field near Seattle.
Schulze returns to Best Buy as chairman emeritus
MINNEAPOLIS (AP) — Best Buy's co-founder and former chairman Richard Schulze is returning to the Best Buy fold as chairman emeritus.
The move comes after Schulze considered making a buyout bid for the electronics retailer but never made a formal offer.
Best Buy has been working to turn around its results as it faces tough competition from online retailers and discounters. Since hiring turnaround expert Hubert Joly as its CEO in August, the company has cut jobs, invested in training employees and started matching online prices.
T-Mobile gets rid of contracts for cellphones
NEW YORK (AP) — T-Mobile USA, the struggling No. 4 cellphone company, is ditching plans centered on familiar two-year contracts in favor of selling phones on installment plans.
T-Mobile is the first major U.S. carrier to break from the contract model. The company changed its website over the weekend to begin selling the new plans. It plans to lay out the rationale for the change on Tuesday at an event in New York.
T-Mobile has been losing subscribers from its contract-based plans for more than two years, chiefly to bigger competitors Verizon Wireless and AT&T. T-Mobile has done better with contract-less, prepaid plans, but those aren't as profitable for the company.
SEC approves Nasdaq's Facebook IPO payment plan
NEW YORK (AP) — The Securities and Exchange Commission said Monday that it has approved a plan by the Nasdaq stock exchange to pay $62 million in reimbursements to investment firms that lost money because of technical problems during Facebook's initial public offering last year.
The Nasdaq had said in June that it would pay $40 million but later increased the amount to $62 million.
Facebook went public May 18 amid great fanfare, but computer glitches at the Nasdaq delayed the start of trading and threw the debut into chaos. Technical problems kept many investors from buying shares that morning, selling them later in the day or even from knowing whether their orders went through. Some said they were left holding shares they didn't want.
By The Associated Press(equals)
The Dow Jones industrial average fell 64.28 points, or 0.4 percent, to 14,447.75 at the close of trading on Monday.
The Standard & Poor's 500 Index fell five points, or 0.3 percent, to 1,551.69. The Nasdaq slipped 9.7 points, or 0.3 percent, to 3,235.30.
Benchmark crude for May delivery rose $1.10 to finish at $94.81 a barrel on the New York Mercantile Exchange. Brent crude, used to price many kinds of oil imported by U.S. refineries, rose 51 cents to $108.17 a barrel on the ICE Futures exchange in London.
Wholesale gasoline was flat at $3.06 a gallon. Heating oil fell 1 cent to $2.88 a gallon. Natural gas fell 6 cents to $3.87 per 1,000 cubic feet.