Top 10 News Items 4/4-4/8: Possible Government Shutdown Threatens Economic Recovery; TI to Buy National Semi; EU Ratchets Key Interest Rate Higher
Here is a recap of the top news items from this week on Wall Street:
1. At the market close Friday, Democrats and Republicans had still not yet agreed to a budget plan which, if not reached by midnight, would signal the first government shutdown in more than 15 years. Sentiment on Capitol Hill is mixed, to say the least. While Democrats are saying budget cuts are nearly settled on, some Republicans suggest this is far from true.
2. The Semi sector was hot this week following news Tuesday that Texas Instruments (NYSE: TXN) agreed to acquire National Semi (NYSE: NSM) in a massive $6.5 billion deal. According to the terms of the deal, TI will pay $25 per share in cash for National. Shares of National Semi rocketed 71% higher on Tuesday.
3. The European Central Bank raised its interest rates for the first time in nearly three years on Thursday in an attempt to stifle inflation that breached the central bank's 2 percent limit in December. ECB policy makers raised the benchmark interest rate to 1.25 percent from a record low of 1 percent, a move that had been predicted by economists. The marginal lending rate was also increased to 2 percent from 1.75 percent, while the deposit rate was raised to 0.5 percent from 0.25 percent.
4. US stocks plunged early morning Thursday following news of yet another large earthquake near Japan. The quake was originally reported at magnitude 7.4, but was later revised to 7.1. Tsunami warnings were issued shortly after. The Dow Jones fell 76 in a matter of seconds, however stocks pared losses and closed only modestly lower.
5. Portuguese Prime Minister Jose Socrates on Wednesday said the country will need financial aid from the European Union. The announcement makes Portugal the third nation to ask the EU for a bailout, following Greece and Ireland. Portuguese officials had previously resisted pressures to seek external help. On Friday the IMF officially said it received an aid assistance request from the country.
6. Shares of Apple (Nasdaq: AAPL) fell this week following news that the NASDAQ 100 will undergo a Special Rebalance, which will cut Apple's weighting in the index from over 20 percent to about 12 percent.
7. Gold and silver continue to break out as investors run for the safety of the precious metals as currency debasement appears to be the only tool the Fed has left to help the economic recovery. Gold set new all-time highs this week over $1,474 per ounce. Crude oil closed over the $113 per barrel level on Friday.
8. Shares of Expedia (Nasdaq: EXPE) rose nearly 13 percent on Friday following news Thursday afternoon that the company will split into two companies, effectively spinning off TripAdvisor.
9. Cisco (Nasdaq: CSCO) CEO John Chambers turned heads Wednesday following an internal memo to employees in which the exec admitted "we have disappointed our investors and we have confused our employees." He said the company has lost some credibility and must earn it back. Click here to see the full letter.
10. DISH Network Corporation (Nasdaq: DISH) was the winning bidder, and will pay $320 million to acquire the assets of Blockbuster, Inc. After certain adjustments are made at closing of the transaction, including adjustments for available cash and inventory, DISH Network expects to pay approximately $228 million in cash to acquire Blockbuster at the closing which is expected to occur in Q2.
1. At the market close Friday, Democrats and Republicans had still not yet agreed to a budget plan which, if not reached by midnight, would signal the first government shutdown in more than 15 years. Sentiment on Capitol Hill is mixed, to say the least. While Democrats are saying budget cuts are nearly settled on, some Republicans suggest this is far from true.
2. The Semi sector was hot this week following news Tuesday that Texas Instruments (NYSE: TXN) agreed to acquire National Semi (NYSE: NSM) in a massive $6.5 billion deal. According to the terms of the deal, TI will pay $25 per share in cash for National. Shares of National Semi rocketed 71% higher on Tuesday.
3. The European Central Bank raised its interest rates for the first time in nearly three years on Thursday in an attempt to stifle inflation that breached the central bank's 2 percent limit in December. ECB policy makers raised the benchmark interest rate to 1.25 percent from a record low of 1 percent, a move that had been predicted by economists. The marginal lending rate was also increased to 2 percent from 1.75 percent, while the deposit rate was raised to 0.5 percent from 0.25 percent.
4. US stocks plunged early morning Thursday following news of yet another large earthquake near Japan. The quake was originally reported at magnitude 7.4, but was later revised to 7.1. Tsunami warnings were issued shortly after. The Dow Jones fell 76 in a matter of seconds, however stocks pared losses and closed only modestly lower.
5. Portuguese Prime Minister Jose Socrates on Wednesday said the country will need financial aid from the European Union. The announcement makes Portugal the third nation to ask the EU for a bailout, following Greece and Ireland. Portuguese officials had previously resisted pressures to seek external help. On Friday the IMF officially said it received an aid assistance request from the country.
6. Shares of Apple (Nasdaq: AAPL) fell this week following news that the NASDAQ 100 will undergo a Special Rebalance, which will cut Apple's weighting in the index from over 20 percent to about 12 percent.
7. Gold and silver continue to break out as investors run for the safety of the precious metals as currency debasement appears to be the only tool the Fed has left to help the economic recovery. Gold set new all-time highs this week over $1,474 per ounce. Crude oil closed over the $113 per barrel level on Friday.
8. Shares of Expedia (Nasdaq: EXPE) rose nearly 13 percent on Friday following news Thursday afternoon that the company will split into two companies, effectively spinning off TripAdvisor.
9. Cisco (Nasdaq: CSCO) CEO John Chambers turned heads Wednesday following an internal memo to employees in which the exec admitted "we have disappointed our investors and we have confused our employees." He said the company has lost some credibility and must earn it back. Click here to see the full letter.
10. DISH Network Corporation (Nasdaq: DISH) was the winning bidder, and will pay $320 million to acquire the assets of Blockbuster, Inc. After certain adjustments are made at closing of the transaction, including adjustments for available cash and inventory, DISH Network expects to pay approximately $228 million in cash to acquire Blockbuster at the closing which is expected to occur in Q2.
You May Also Be Interested In
Create E-mail Alert Related Categories
Special ReportsRelated Entities
John Chambers, European Central Bank, StreetInsider.com Top 10 News Items for the Week, Crude OilSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
