(Reuters) – The European Central Bank will intervene decisively on markets to protect Italy and Spain from an accelerating debt crisis, a monetary source said on Sunday, indicating it would buy government bonds of the euro zone’s third and fourth biggest economies.
The agreement of the bank’s policy-making Governing Council marked a watershed in the ECB’s fire-fighting after modest bond buying efforts last week failed to stem contagion to the currency bloc’s larger economies.
Officials on an ECB conference call carefully considered the situation in Italy and Spain, and took note of a statement by France and Germany on Sunday stressing their commitment to European financial reforms, the source said.
“The Euro system will intervene very significantly on markets and respond in a significant and cohesive way,” the source said, adding the ECB would shortly issue a statement.
The move aims to help keep markets at bay after last Friday’s U.S. debt downgrade added to the euro zone’s sovereign debt crisis, until the bloc’s own rescue fund can take over.
Germany and France earlier said in a statement that the EFSF bailout fund would soon be able to buy government bonds of debt strugglers Italy, Spain, Greece, Portugal and Ireland.
ECB President Jean-Claude Trichet had wanted the policy-setting Governing Council to take a final decision on buying Italian paper after Prime Minister Silvio Berlusconi announced new measures on Friday to speed up deficit reduction and hasten economic reforms, other euro zone sources said.
One said the council would also discuss possible emergency liquidity measures to prevent money markets freezing.
The Eurosystem comprises the ECB and national central banks of the 17 countries that share the euro single currency.
German Chancellor Angela Merkel and French President Nicolas Sarkozy said they were committed to getting approval from their parliaments for new powers for the European Financial Stability Facility rescue fund by the end of September.
That will allow the EFSF to buy government bonds in the secondary market if the ECB thinks it is warranted and if euro zone member states agree, potentially absolving the ECB of the need to do so, a policy that a powerful minority of its council members strongly oppose.
“France and Germany are confident that the ECB analysis will provide the appropriate basis for secondary market interventions as it will help determine the case when financial stability of the euro zone as a whole is at risk,” the leaders said.
Their statement reiterated the agreement at last month’s emergency euro zone summit which granted a second bailout to Greece, but the focus on the EFSF’s ability to buy government bonds once the bloc’s parliaments have ratified its new powers was meant to encourage the ECB to do the same in the interim.
Twin debt crises in Europe and the United States are causing global market turmoil and stoking fears of the rich world sliding back into recession.
Another source said the ECB meeting was put back into the evening to see what measures U.S. authorities were prepared to take to calm markets after credit ratings agency Standard & Poor’s downgraded Washington’s AAA rating to AA+ on Friday.
“The important part of the picture now is the U.S.,” that source said.
G7 TO CONFER
Finance ministers of the Group of Seven major industrialized nations are to hold a teleconference late on Sunday (European time) to discuss a response to the crisis after senior officials conferred by telephone late on Saturday.
The ECB reactivated its controversial sovereign bond-buying programme last Thursday but only bought small quantities of Irish and Portuguese bonds, seeking more front-loaded austerity measures from Italy.
Italian and Spanish 10-year bond yields spiked to 14-year highs when investors saw the central bank was not buying their paper.
Under pressure from EU peers and the central bank, Berlusconi announced late on Friday plans to bring forward balancing the budget by one year to 2013, enshrine a balanced budget rule in the constitution and push through welfare and labor market reforms after talks with trade unions and employers.
Merkel and Sarkozy welcomed the new Italian plan.
“Especially the Italian authorities’ goal to achieve a balanced budget a year earlier than previously envisaged is of fundamental importance,” they said.
However, details of Italy’s austerity drive are thin, leaving many analysts — and maybe some in the ECB — skeptical.
After a week that saw $2.5 trillion wiped off global stock markets, political leaders are under pressure to reassure investors that Western governments have both the will and ability to reduce their huge and growing public debt loads.
That had raised pressure on the ECB to act to calm bond markets until the euro zone’s 440-billion-euro rescue fund is empowered to intervene on secondary bond markets and give countries in difficulty precautionary credit lines.
It has also prompted widespread calls from economists and market analysts for the euro zone to at least double the size of the European Financial Stability Facility — a move that EU paymaster Germany and its close ally France has rejected as unnecessary.
(additional reporting by Paul Carrel; writing by Paul Taylor and Mike Peacock; editing by Janet McBride)

SOURCE: REUTERS

Google shares jumped after-hours after the search giant delivered a blowout quarter, beating on both earnings and revenue.

The search engine and advertising company[GOOG  528.94   -9.32  (-1.73%) said its earnings excluding items shot up to $8.74 a share from $6.45 a year earlier.

Revenue soared 36 percent to $6.92 billion from $5.09 billion a year ago.

Analysts expected Google to earn $7.85 a share on revenue of $6.55 billion, according to Thomson Reuters.

Net income increased 36 percent to $2.51 million, or $7.68 a share.

Google shares have a had a rocky week after a downgrade by Morgan Stanley, which cut its price target on the stock to $600 from $645.

“Given Google’s aggressive hiring plans, rising compensation expense, and significant advertising spend on Chrome and other Google products, we expect EBITDA margin to decline in 2011 and 2012,” a report by Morgan Stanley said.

The stock also fell during regular trading Thursday, down more than 2 percent, but rebounded more than 10 percent in after-hours trading after the report

Source: CNBC

Up over 10% after-hours

Mini-crash compared to Fukushima back in March…

http://video.foxbusiness.com/v/1048148521001/rogers-debt-reduction-talks-a-sham/

GoDaddy, the world’s largest domain registrar, has been sold to three private equity firms in a deal valued at $2.25 billion, the company announced late Friday.

As a report predicted a week ago, private equity firms KKR & Co., Silver Lake Partners and Technology Crossover Ventures sealed the deal, where they agreed to take on GoDaddy’s debt (update: which theWall Street Journal says amounts to roughly half the value of the deal). That earlier report indicated the company would be sold for between $2 billion and $2.5 billion.

Company founder and CEO Bob Parsons predicted further growth of GoDaddy under its new ownership. He said to the Los Angeles Times, “What these guys see is a company with a lot more potential internationally and more potential to make partnerships and acquisitions. They’ll help us finance and they’ll help us recruit talent.”

Update:The New York Times, in an article entitled “Go Daddy to Sell Itself to K.K.R. and Silver Lake”, quotes Parsons as saying “This isn’t a sale. It’s a partnership that’s reinvesting in Go Daddy.” The article added that Parsons “will become executive chairman of the company after the sale closes, and he will remain a large stakeholder,” but it’s still unclear whether Parsons will retain a controlling interest in the company. GoDaddy’s own press release doesn’t address that crucial fact, either. We’ve contacted Parsons’ office for verification.

GoDaddy, known for its sexy Super Bowl ads and controversial CEO with a penchant for elephant killing, has seen significant growth over the past three years, with sales rising by 25% to $947 million from 2009 to 2010. The company projected growth for 2011 to continue that trend, quoting a figure of $1.1 billion for the year.

SOURCE: MASHABLE.COM

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Obama’s housing chief: Now’s the time to buy

Washington (CNN) – Housing prices have hit rock bottom and the economic climate is prime to purchase a home, said Housing and Urban Development Secretary Shaun Donovan.

In an interview broadcast Sunday on CNN’s “State of the Union,” Donovan said declining foreclosure rates make him hopeful, adding that it is “very unlikely we see a significant further decline.”

FULL STORY HERE WITH VIDEO

A Fourth of July Without Fireworks?

Counties Across South Impose Bans Amid Persistent Drought and Record Blazes

This July Fourth holiday could be dimmer than usual across the South after officials imposed bans on the sale and use of fireworks amid persistent drought and some of the worst wildfires in recorded history.

Officials from Florida to Arizona have prohibited the use of fireworks to reduce the risk of more wildfires. They are also asking counties and residents where bans aren’t in place to give up holiday displays.

New Mexico Gov. Susana Martinez on Wednesday ordered state police officers to help enforce bans and restrictions put in place across parts of the state. “The conditions in New Mexico are simply too dangerous for anyone to buy, sell or use fireworks this summer,” she said in a statement.

The Texas Department of Public Safety on Tuesday pleaded with counties, cities and citizens to forgo fireworks. So far, 179 of Texas’s 254 counties have banned fireworks, according to Gov. Rick Perry’s office.

“It’s just too dry, and our firefighting resources are stretched too thin to be able to cope with potentially massive outbreaks of fires caused by fireworks,” said Steven McCraw, the public safety department’s director.

Full Story Here: WSJ

Agnes Dherbeys for The New York Times

Supporters of Yingluck Shinawatra celebrated after exit polls appeared to give the Pheu Thai party a victory.

Agnes Dherbeys for The New York Times

Early election returns showed the Pheu Thai party, headed by Mr. Thaksin’s  youngest sister, Yingluck Shinawatra, with a commanding lead.

In a contest that was seen as a referendum on Thailand’s recent turmoil, the Pheu Thai party, headed by Mr. Thaksin’s youngest sister, Yingluck Shinawatra, 44, appeared headed for an absolute majority of the 500-seat Parliament. With 98 percent of the votes counted late Sunday night, her party won a projected 264 seats.

The governing Democrat party won just 160 seats, and Prime Minister Abhisit Vejjajiva conceded defeat.

Ms. Yingluck, a businesswoman  with no political experience, was selected to head the party by her brother,  who called her his “clone.” She proved  to be a brilliant campaigner.

SOURCE: The New York Times

Newspaper publisher the New York Timessold more than half its 17 percent stake in the company that owns the Boston Red Sox, according to a filing with the Securities and Exchange Commission Friday.

Three separate buyers, whose names have not been disclosed, together paid $117 million in cash for 390 of its 700 shares in Fenway Sports Group. The New York Times [NYT  8.71  -0.01  (-0.11%)   ] is looking for buyers of the remaining shares.

The sale is one the company has been trying to make since 2008, when revenue at its core newspaper businesses took a hit, jeopardizing its ability to manage its debt.

The sale will be reflected as a pretax gain of about $64 million in its third quarter.

New York Times did not respond to inquiries for comment. Click here to access New York Times filings with the SEC.

SOURCE: CNBC

July 4th BBQ Costs Sizzle, But Savvy Shopping Can Help

Read more: http://www.foxbusiness.com/slideshow/personal-finance/2011/07/01/july-4-bbq-costs-sizzle-but-savvy-shopping-can-save-day/#ixzz1QzGb7Y71

Tom Hanks & Julia Roberts In Holiday Flop: ‘Transformers 3’ Tops But Trailing ‘2’ In U.S. And Tracking $385M Global Thru July 4th

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141 White House staffers make six figures

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“Another bailout.” -Jim Rogers (sarcasm)

‘Billions worth’ of treasure found in Indian temple

A treasure trove of gold and silver jewelry, coins and precious stones said to be worth billions of dollars has been found in a Hindu temple in southern India, officials said on Saturday.

The valuables have an estimated preliminary worth of over 500 billion rupees ($11.2 billion), said Kerala Chief Secretary K. Jayakumar, catapulting the temple into the league of India’s richest temples.

The thousands of necklaces, coins and precious stones have been kept in at least five underground vaults at the Sree Padmanabhaswamy Temple which is renowned for its intricate sculptures.

“We are yet to open one more secret chamber which has not been opened for nearly 140 years,” Jayakumar told AFP.

The actual value of the treasure haul can be ascertained only after it is examined by the archaeological department, said Jayakumar.

The temple, dedicated to Hindu lord Vishnu, was built hundreds of years ago by the king of Travancore and donations by devotees have been kept in the temple’s vaults since.

A necklace found on Thursday was 18 feet (six metres) long. Thousands of gold coins have also been found.

Since India achieved independence from Britain in 1947, a trust managed by descendants of the Travancore royal family has controlled the temple.

But India’s Supreme Court recently ordered that the temple be managed by the state to ensure the security of valuables at the shrine.

Until now, the Thirupathy temple in southern Andhra Pradesh state was believed to be India’s richest temple with offerings from devotees worth 320 billion rupees.

The revelation about the huge riches in the Padmanabhaswamy temple has forced police to sharply step install security cameras and alarms.

Authorities also plan to set up a commando force for security, said Kerala director general of police Jacob Punnoose.

“Now it?s known all over the world that the Padmanabhaswamy temple has jewels worth billions of rupees we have decided to assign it maximum security,” Kerala Chief Minister Oommen Chandy told AFP.

SOURCE: AFP/YAHOO NEWS

Full Story Here

History lovers may find some humor in the fact that the skies over a city named New Britain were supposed to be dark this Fourth of July.

Unfortunately, there’s nothing funny about the $10 million budget shortfall that forced the city to abandon a national tradition.

Local governments are strapped for cash and many of them — even biggies like Chicago and Cincinnati — have resorted to canceling their July 4 fireworks programs in an effort to control their spiraling deficits.

Read more: http://www.foxbusiness.com/personal-finance/2011/06/30/american-spirit-strong-despite-fireworks-cancellations/#ixzz1QoWHqgne

Strauss-Kahn Case Seen as in Jeopardy

The sexual assault case against Dominique Strauss-Kahn is on the verge of collapse as investigators have uncovered major holes in the credibility of the housekeeper who charged that he attacked her in his Manhattan hotel suite in May, according to two well-placed law enforcement officials.

Although forensic tests found unambiguous evidence of a sexual encounter between Mr. Strauss Kahn, a French politician, and the woman, prosecutors do not believe much of what the accuser has told them about the circumstances or about herself.

Since her initial allegation on May 14, the accuser has repeatedly lied, one of the law enforcement officials said.

Senior prosecutors met with lawyers for Mr. Strauss-Kahn on Thursday and provided details about their findings, and the parties are discussing whether to dismiss the felony charges. Among the discoveries, one of the officials said, are issues involving the asylum application of the 32-year-old housekeeper, who is Guinean, and possible links to criminal activities, including drug dealing and money laundering.

Prosecutors and defense lawyers will return to State Supreme Court in Manhattan on Friday morning, when Justice Michael J. Obus is expected to consider easing the extraordinary bail conditions that he imposed on Mr. Strauss-Kahn in the days after he was charged.

Indeed, Mr. Strauss-Kahn could be released on his own recognizance, and freed from house arrest, reflecting the likelihood that the serious criminal charges against him will not be sustained. The district attorney’s office may try to require Mr. Strauss-Kahn to plead guilty to a misdemeanor, but his lawyers are likely to contest such a move.

The revelations mark a stunning change of fortune for Mr. Strauss-Kahn, who was a leading candidate for the French presidency before being accused of sexually assaulting the woman who went to clean his luxury suite at the Sofitel New York.

Prosecutors from the office of District Attorney Cyrus R. Vance Jr., who initially were emphatic about the strength of the case and the account of the victim, plan to tell the court on Friday that they “have problems with the case” based on what their investigators have discovered, and will disclose more details of their findings to the defense.

“It is a mess, a mess on both sides,” the official said.

SOURCE: THE NEW YORK TIMES--FULL STORY HERE

Cashing in on the Casey Anthony Trial

People are finding ways to try and make money off the Casey Anthony trial.

For one, Chirag Kabrawala, an attorney at Latham, Shuker, Eden and Beaudine LLP, is a spokesperson for Casey Tours LLC, an Orlando tour bus company that is planning to open next week. “Casey” Tours is in reference to Casey Anthony, the 25-year-old on trial for the 2007 murder of her then two-year-old daughter Caylee.

According to Kabrawala, Casey Tours will take tourists on a guided trip to places that have become famous in the trial, including the Anthony home, Universal Studios (where Casey claimed to have worked when her daughter had disappeared), the home of “Zanny the Nanny” (where Casey claimed her nanny lived), the place where Caylee’s body was found, and the courthouse.

Read more: http://smallbusiness.foxbusiness.com/entrepreneurs/2011/06/24/cashing-in-on-casey-anthony-trial/#ixzz1QL5NdpyG