Reuters - Video

EDITION: U.S. | U.K. | IN

Top News

DOJ goes after S&P, Yum warns

Monday, February 04, 2013 - 02:17

Feb. 4 - Summary of business headlines: S&P says target of Department of Justice lawsuit over pre-crisis ratings; Yum earnings frightened by China chicken scare; BlackBerry changes stock ticker; Stocks suffer largest decline of the year. Conway G. Gittens reports.

▲ Hide Transcript

View Transcript

Bull chips suffered their first triple-digit fumble of the year as economic data provide a slow-down sign for a market sitting at five-year highs. Art Hogan of Lazard Capital Markets has this assessment. SOUNDBITE: ART HOGAN, LAZARD CAPITAL MARKETS, MANAGING DIRECTOR (ENGLISH) SAYING: "We've had a market that is up some 6 percent on a year-to-date basis on the Dow. Up 11 percent from the middle of the summer last year and certainly up about 8 percent since the lows in December of last year. So the market has had a significant run and I don't think anybody believes we are going to annualize a run rate like that being up 6 percent a month." The market was down at least one percent across the board in the worst day for the market of 2013. The U.S. Department of Justice plans to sue Standard & Poor's for debt ratings leading up to the big financial crisis, according to S&P. This would be the first move against a credit rating agency over what some say caused the crisis five years ago. S&P says the expected lawsuit "would be wrong in contending that S&P ratings were motivated by commercial considerations and not issued in good faith." A lack of faith is what investors had, sending shares of McGraw-Hill, the parent of S&P, slumping almost 14 percent. Rival Moody's dropped almost 11 percent. Fitch is owned by France's Fimalac, which closed higher before the news broke. A chicken scare in China at Yum Brands hurt quarterly profit and will prevent full-year earnings from flying the coop. The parent company of KFC, Taco Bell and Pizza Hut - grappling with what it calls adverse publicity regarding its poultry supply. The company gets more than half of its overall sales and operating profit from China. BlackBerry moves ahead with a plan to try and shed its dark past. Today the company is in the process of officially dropping the name Research in Motion, officially changing the ticker symbol of its stock to B-B-R-Y. Despite mixed ratings last week of its new BlackBerry 10 devices - the stock soared 15 percent. It was a nasty day in Europe. A political scandal in Spain seemed to be the main catalyst, but not the only concern. Shares in France down 3 percent, Germany down 2-1/2 percent, UK down 1.6 percent.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

DOJ goes after S&P, Yum warns

Monday, February 04, 2013 - 02:17

Editors' Picks »

Most Popular »

Moving Pictures »

Images of November Images of November

Tue, 02 Dec, 2014 - (0:30)

Images of October Images of October

Mon, 03 Nov, 2014 - (0:57)

The world in a city The world in a city

Fri, 31 Oct, 2014 - (1:30)

Real-life superheroes Real-life superheroes

Tue, 28 Oct, 2014 - (1:44)

Dance of the northern lights Dance of the northern lights

Mon, 20 Oct, 2014 - (1:08)

Images of September Images of September

Thu, 02 Oct, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, 05 Sep, 2014 - (2:05)

Burning Together Burning Together

Mon, 01 Sep, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, 22 Aug, 2014 - (3:12)

Images of August Images of August

Fri, 29 Aug, 2014 - (1:00)

Oddly Enough »

Bad bear to attack Santa! Bad bear to attack Santa!

Thu, 18 Dec, 2014 - (0:42)

Navy unveils robot fish Navy unveils robot fish

Thu, 18 Dec, 2014 - (0:42)

French students dig WWI trench to relive warfare French students dig WWI trench to relive...

Wed, 17 Dec, 2014 - (1:16)

Santa abseils down Berlin high-rise Santa abseils down Berlin high-rise

Mon, 15 Dec, 2014 - (1:06)

The Christmas spirit heads underwater The Christmas spirit heads underwater

Thu, 11 Dec, 2014 - (1:01)

Newly released U.S. military video shows apparent airstrikes against militants in Syria Newly released U.S. military video shows...

Wed, 10 Dec, 2014 - (0:46)

Dateline Asia »

North Korea to blame for Sony hack: source North Korea to blame for Sony hack: source

Thu, 18 Dec, 2014 - (1:10)

China's child labor problem China's child labor problem

Thu, 18 Dec, 2014 - (2:19)

Measuring up North Korea's heir Measuring up North Korea's heir

Wed, 17 Dec, 2014 - (1:03)

Russia worries rock emerging markets Russia worries rock emerging markets

Wed, 17 Dec, 2014 - (1:14)

Seoul raises the "nut rage" stakes Seoul raises the "nut rage" stakes

Tue, 16 Dec, 2014 - (1:03)

Sydney in shock after hostage horror Sydney in shock after hostage horror

Tue, 16 Dec, 2014 - (1:07)

Not all merry and bright in China's manufacturing sector Not all merry and bright in China's...

Tue, 16 Dec, 2014 - (1:29)

Beneath the surface of Abe's big win Beneath the surface of Abe's big win

Mon, 15 Dec, 2014 - (1:15)

Some hostages escape from Sydney cafe Some hostages escape from Sydney cafe

Mon, 15 Dec, 2014 - (1:06)

Reuters Investigates »

Where the sea is closing in Where the sea is closing in

Thu, 20 Nov, 2014 - (3:41)

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, 19 Feb, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, 10 Jan, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, 29 Aug, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, 29 Aug, 2013 - (13:22)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, 05 Aug, 2013 - (1:36)