Capital One beefs up on store-branded cardsCapital One Financial announced a $2.6 billion deal for the U.S. credit card portfolio of London-based HSBC Holdings, a move that would make the McLean, Va., firm the nation's third-largest issuer of private-label, or store-branded, plastic. The deal puts Capital One at the forefront of a niche market it only entered into at the start of this year. The company made its foray into the space in January by picking up the credit card portfolio of Canadian retail conglomerate Hudson's Bay Co.
Backup firm Carbonite raises $62.5M in IPOCarbonite Inc., the provider of online data-backup services, raised $62.5 million after pricing its U.S. initial public offering at the low end of a reduced range. The Boston-based company, which lets users save and access computer files remotely using so-called cloud storage, sold 6.25 million shares at $10 each, according to data compiled by Bloomberg, after offering them for $10 to $11. Earlier Wednesday, Carbonite lowered the amount it was seeking by as much as 41 percent, according to a regulatory filing.
Growth in wholesale inventories slowsInventories at wholesalers climbed in June at the slowest pace in seven months as distributors kept stockpiles in line with sales. The 0.6 percent increase in inventories followed a revised 1.7 percent rise in May, Commerce Department figures showed. Economists projected a 1 percent gain, according to the median forecast in a Bloomberg News survey. Sales also rose 0.6 percent in June after dropping the previous month. Wholesalers may be trying to limit the amount of unsold merchandise on hand after economic expansion slowed.
Oil prices up sharply after drop-off in supplyOil surged the most in three months in New York after U.S. crude supplies declined the most in a year and demand increased. Futures rose as inventories fell to a five-month low and demand reached the highest level this year. Oil also gained on speculation that the Federal Reserve will take more action to bolster the economy after the Fed said it would keep interest rates near zero until mid-2013. Crude for September delivery climbed $3.59, or 4.5 percent, to settle at $82.89 a barrel on the New York Mercantile Exchange in the biggest one-day gain since May 9.
Bank of England cuts its growth forecastThe governor of the Bank of England, Mervyn King, gave a gloomy outlook for the British economy but said he would not make a vow like the one by the Federal Reserve in the U.S. to keep short-term interest rates near zero for some time. King said higher inflation and a deterioration of the British economy had squeezed households' finances more than expected. The central bank cut its economic growth forecast for this year to 1.4 percent from 1.8 percent. Britain's economy barely grew in the second quarter, and interest rates have been at a record low of 0.5 percent since March 2009.
Apple passes Exxon Mobil again, makes it stickApple Inc. surpassed Exxon Mobil Corp. to seize the title of world's most valuable company, as investor confidence in high-tech growth prospects exceeded faith in the oil industry's gushing profits. While both companies declined Wednesday, Exxon fell more, leaving it with a market value of $330.8 billion, compared with $337.2 billion for Apple at the close of U.S. markets. Tuesday was the first time Apple passed Exxon in intraday trading.
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