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Bad news for News Corp

Wednesday, August 08, 2012 - 02:16

Aug. 8 - Summary of business headlines: News Corp results weaker-than-expected; Dow, S&P 500 barely extend four-day rally; McDonald's post worst same-store sales in almost a decade; Starbucks invests in mobile payment business; Google's Android grabs 68 percent market share. Conway G. Gittens reports.

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A rocky ride on Wall Street but stocks shift gears by the end. The Dow & S&P 500 squeezed out a fourth day of gains but not so for the Nasdaq. Quarterly revenues at News Corp fell more than expected in its fiscal fourth quarter and the media conglomerate posted a quarterly loss. Operating income at most divisions were up for the full fiscal year led by cable and movies. Mediatech Capital Partners Porter Bibb: SOUNDBITE: PORTER BIBB, MANAGING PARTNER, MEDIATECH CAPITAL PARTNERS (ENGLISH) SAYING: "Even though 20th Century Fox is not leading its peer group this year, it's still 11% above a year ago in terms of profit and it has "Ice Age" and "Prometheus" are their two big hits and several more in the pipeline so those are very strong businesses but the biggest side of the business is the television and the network and the pay television side." But News Corp expects TV ad revenue to be flat this fiscal year. Profits were up at Macy's - helped by cost controls and strong sales in July. Macy's says it is confident it will win market share heading towards the holiday season and so it raised guidance for the year. The weakening global economy taking its toll on the Golden Arches. Sales at McDonald's locations opened at least 13 months were the worst in more than nine years. Starbucks giving a jolt to mobile payments start-up Square. The coffee chain is investing $25 million into Square- and will switch its processing of debit and credit card payments to Square's system. Shipments of smartphones powered by Google's Android system doubled in the second quarter, taking 68 percent market share, according to research firm IDC. Apple's iOS was a far second. The two now control 85 percent of all the smartphones shipped last quarter. And in Europe: Shares of Standard Chartered bounce-back after losing about a fourth of their value as it mounts a defense against allegations it broke U.S. sanctions against Iran. As for the markets there - stocks were very little changed. Conway Gittens, Reuters.

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Bad news for News Corp

Wednesday, August 08, 2012 - 02:16