By Guillermo Parra-Bernal and Jeb Blount SAO PAULO/RIO DE JANEIRO (Reuters) - Tycoon Eike Batista's OSX Brasil SA and holders of the ailing shipbuilder's $500 million in bonds are in talks to delay an interest payment due on December 20, three sources with direct knowledge of the situation said. OSX filed for bankruptcy protection on November 11 after failing to get debt relief from creditors. One of the conditions is that OSX give up control, but not ownership, of the specialized ship that secured the bonds - the OSX-3 - to a captain and crew under the control of creditors, a third source added. OSX declined to confirm whether the talks are taking place.
By Euan Rocha TORONTO (Reuters) - Barrick Gold Corp investors have taken in stride news that the world's largest gold producer may consider hedging its gold exposure, but they are roundly panning its plan for more diversification into other commodities. John Thornton, who was confirmed after markets closed on Wednesday as Barrick's next chairman, told reporters he would consider revisiting a hedging strategy for selling the company's output because of the volatility of gold prices. He also said he thinks Barrick, which already has a copper sideline, is well placed to look more at copper and perhaps at other commodities, once it puts its recent troubles behind it. That pronouncement stung some Barrick shareholders, many of whom are invested in the Toronto-based miner only because they see a bright future for the gold price.
By Ryan Vlastelica NEW YORK (Reuters) - U.S. stocks fell on Thursday, with the Dow and S&P 500 dropping for a fifth straight session after a round of mixed economic data left traders guessing as to when the Federal Reserve would begin to slow its stimulus program. The Dow and the S&P 500 are in their worst stretch since September. However, the moves have been slight, with the S&P 500 down about 1.2 percent over the period. Traders have been trying to second-guess how the Fed views strong data and whether the numbers are strong enough for the central bank to slow its $85 billion-a-month bond-buying program, which it said it would do when certain economic metrics meet its targets.
JEFFERSON CITY, Mo. (AP) — With Boeing the king of U.S. aircraft manufacturing, more than a dozen states are groveling before the throne for a share of the riches to be made from the next-generation 777 jetliner.
By Ju-min Park SEOUL (Reuters) - For 61-year old construction worker Chae Chang-geun, an ethnic Korean from China, Seoul is a place to make money but not a place to call home. Chae is one of the 450,000 people from the Korean diaspora born in China, who make up 40 percent of the immigrant workforce in South Korea helping to keep the country's car plants, shipyards and building companies going. With one of the fastest ageing populations among developed nations, South Korea will become increasingly dependent on foreign labor. "Technically, this country is our motherland," said Chae, who like other ethnic Koreans from China, thought he would be welcomed in South Korea because of a shared cultural history.
By Donny Kwok HONG KONG (Reuters) - The world's most valuable jewelry retailer Chow Tai Fook , which counts Cartier and Tiffany & Co as competitors, is on a quest to conquer the hearts of China's future big spenders. Superman and the Angry Birds team also feature in Chow Tai Fook Jewellery Group's range of fashionable, and affordable, pieces which the company hopes will win over the millions of Chinese who live outside major cities but who are reaping the benefits of a rapidly growing economy and who remain enamored by the gleam of gold. "We are quite similar to the fast fashion way of business in that our products are only available for a limited period of time," Kent Wong, managing director of Chow Tai Fook, told Reuters. China, the world's second largest economy, is on track to overtake India as the world's biggest consumer of gold this year as falling prices encourage purchases for both personal use and investment.
Foreign direct investment into emerging markets should decline next year because of persistent concerns about the global economy, the World Bank's political risk insurance arm said on Thursday. For the first time in five years, companies listed macroeconomic instability as their biggest constraint for investing in emerging markets over the next three years, according to the report from the World Bank's Multilateral Investment Guarantee Agency. "The persistent global economic uncertainty appears to have tainted the overall mood, with economic pessimism underpinning the expected stagnant FDI levels," MIGA said in the report. In its latest global economic snapshot in October, the International Monetary Fund cut its world growth forecasts for the sixth straight time in two years, warning about a sluggish expansion in the developing world.
You really can get anything at Walmart. Even a Banksy print, sort of. The retail giant's website is listing a number of pieces of art as Banksy prints, even though they aren't, according to the artist's publicist. The publicist said the series of prints listed on Walmart.com are at best "counterfeit," at worst based on different street art entirely, according to LAist.
German Finance Minister Wolfgang Schaeuble has invited euro zone officials to a meeting in Berlin on Friday in a bid to come closer to a solution on a planned European resolution mechanism to deal with troubled banks, a German newspaper said on Friday. Business daily Handelsblatt cited unnamed EU diplomats and German government sources as saying Eurogroup President Jeroen Dijsselbloem, French Finance Minister Pierre Moscovici, ECB Executive Board member Joerg Asmussen and European Union regulation chief Michel Barnier were all expected to attend.
Airbus and its engine makers have acted to try to shore up the value of second-hand A340 aircraft as the European planemaker tries to reduce its financial exposure to depressed market prices of an aircraft that it no longer produces. Airbus has told bankers, airlines and other owners of the aircraft that it is working on plans to increase the maximum capacity by 8 percent to 475 seats in a bid to make it more attractive to airlines looking to replace Boeing 747-400s. Britain's Rolls-Royce is also fine-tuning engine service contracts so that airlines can maintain the A340's four engines for a similar cost to servicing the two larger General Electric engines on the rival Boeing 777, Airbus said. The move comes after parent EADS said in its 2012 annual report that Airbus was "currently engaged in taking mitigation action to reduce the impact of asset value guarantees falling due in the coming years relating to A340s in particular".
If Wall Street were Santa Claus, JPMorgan Chase would get nothing but coal in its stocking this year. That's because America's biggest bank is partly, if not mostly, responsible for the fact that U.S. financial regulators will soon clap some fairly strong fetters on big banks, The Wall Street Journal reported on Thursday (subscription only). Regulators are reportedly expected to soon approve a tough version of what is known as the "Volcker Rule," part of the Dodd-Frank financial-reform act, which prohibits banks from proprietary trading, which is fancy talk for "gambling with their own money. ...
The higher we climb mountains of debt, the thinner the air will get. Financial markets, after five years of stellar performance, appear to trade closer to this 'out-of-breath constellation,' and caution may be warranted before resuming the ascent.