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German economy roars ahead in first quarter

BERLIN (Reuters) – German gross domestic product grew a resoundingly strong 0.5 percent in the first quarter, far exceeding forecasts due largely to robust exports, signaling Europe’s largest economy can remain a growth engine for the crisis-struck euro zone. The economy bounced back from a contraction of 0.2 percent in the fourth quarter, shaking off any fears of a recession and beating even the highest forecast in a Reuters poll of 41 economists. …

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German economy roars ahead in first quarter

Facebook raises IPO range, targets $12.1 billion: source

NEW YORK/SAN FRANCISCO (Reuters) – Facebook Inc has raised the price range on its initial public offering to $34 to $38 a share in response to strong demand, a source familiar with the situation said, giving the No.1 social network a valuation exceeding $100 billion. At the mid-point of $36, Facebook would raise $12.1 billion by selling 337.4 million shares. The company founded in a Harvard dorm room by Mark Zuckerberg, who turned 28 on Monday, had originally aimed for $28 to $35 a share. …

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Facebook raises IPO range, targets $12.1 billion: source

Coty withdraws $10.7 billion offer to buy Avon

(Reuters) – Fragrance company Coty Inc withdrew its $10.7 billion takeover bid for Avon Products Inc on Monday, saying the world’s largest cosmetics direct seller had missed a deadline to start discussing a deal that Coty first proposed in March. The move leaves Avon shareholders relying on new Chief Executive Sheri McCoy to come up with a plan to turn around a company that has been suffering from plummeting profits on falling sales at home and in some international markets, as well as a stock price that had been hammered prior to Coty’s bid. …

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Coty withdraws $10.7 billion offer to buy Avon

Obama says JPMorgan loss shows need for Wall Street reform

WASHINGTON (Reuters) – President Barack Obama said on Monday the huge trading loss at JPMorgan Chase & Co illustrated the need for Wall Street reform and warned that the same kind of error at a less stable bank may have required government intervention. “JPMorgan is one of the best managed banks there is. Jamie Dimon, the head of it, is one of the smartest bankers we got and they still lost $2 billion and counting,” Obama said on ABC’s “The View,” according to a transcript released by the network. “We don’t know all the details. …

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Obama says JPMorgan loss shows need for Wall Street reform

S&P 500 down for 4th day of five, Groupon up late

NEW YORK (Reuters) – Stocks fell on Monday as investors dealt with the one-two punch of worsening political upheaval in the euro zone and the possibility that China’s economy may be softening more than previously thought. The S&P 500 finished lower for the fourth day of five to close at its lowest level since February, adding fuel to worries of a coming market correction. Economically sensitive shares, including banks and energy companies, paced the decline. Exxon Mobil Corp lost 1.2 percent to $82.12. The NYSEArca oil index fell 1.8 percent. …

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S&P 500 down for 4th day of five, Groupon up late

Yahoo CEO to step down amid controversy: source

(Reuters) – Yahoo Inc Chief Executive Scott Thompson is stepping down after a controversy over a fake computer science college degree on his biography, a source familiar with the situation said on Sunday. Thompson’s interim replacement, effective immediately, will be Yahoo’s global media head Ross Levinson. Yahoo was not immediately available for comment Yahoo has said that Thompson, the former president of eBay Inc division PayPal, did not have a computer science degree, despite what was stated in his official company biography and in regulatory filings with the U.S. …

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Yahoo CEO to step down amid controversy: source

Ally Financial’s mortgage unit nears bankruptcy: sources

NEW YORK (Reuters) – Ally Financial Inc’s Residential Capital unit is nearing a bankruptcy filing, sources familiar with the situation said on Sunday, in a move that could help the taxpayer-owned auto lender to shed its troubled mortgage business but also spur drawn-out legal fights. The board of ResCap is scheduled to meet later on Sunday and a pre-arranged bankruptcy filing, where Ally has the support of some creditors to its plan but not all, is expected to follow soon after, the sources said. …

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Ally Financial’s mortgage unit nears bankruptcy: sources

JPMorgan CEO says bank reacted badly to red flags

(Reuters) – JPMorgan Chase & Co CEO Jamie Dimon said his bank reacted badly to warning flags last month that it had large losses in financial derivatives trading, a $2 billion embarrassment that has given banking regulators new ammunition. In an interview broadcast on Sunday on NBC’s “Meet the Press” television program, Dimon said bank executives were “completely wrong” in public statements they made in April after being challenged over the trades in media reports. “We got very defensive. And people started justifying everything we did,” Dimon said. …

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JPMorgan CEO says bank reacted badly to red flags

Facebook IPO has halo effect for venture capitalists

SAN FRANCISCO (Reuters) – For the handful of venture capitalists who backed Facebook in its early days, a huge financial payoff is not the only thing they may be celebrating when the company goes public later this week. In a business in which the best investment opportunities flow to a small number of firms with big reputations, the prestige boost that Accel Partners, Greylock Partners and Meritech Capital have gained from their Facebook investments dating back to 2005 and 2006 could pay dividends for years to come. …

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Facebook IPO has halo effect for venture capitalists

Wall Street Week Ahead: Stocks face choppy seas of bank woes, uncertainty

NEW YORK (Reuters) – More volatility could be in store for stocks next week as investors grapple with less certainty about the economic outlook and a new blow to the financial sector after JPMorgan Chase’s trading loss. Europe is expected to keep investors jumpy as well, with inconclusive results from the recent Greek election and the country’s future appearing more worrisome. The economic picture appears cloudy these days, with some data showing a more positive trend and other reports showing the opposite. …

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Wall Street Week Ahead: Stocks face choppy seas of bank woes, uncertainty

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