NEWS AT A GLANCE
China’s booming economy slows a bit
China’s gross domestic product rose 10.1 percent in the second quarter, its slowest growth since 2005, and consumer prices rose 7.1 percent in June, down from 7.7 percent in May. Still, China is growing faster than the other 19 top global economies. The yuan also fell 0.2 percent versus the dollar. (Bloomberg) China’s Shanghai Composite index closed down 2.7 percent yesterday, capping a 48.6 percent year-to-date decline. That pushes it past Vietnam to become the worst-performing stock market this year. The Shanghai Composite was the best-performing market in 2007, growing 97 percent, so a “corrective phase is not unexpected,” said Robert Lutts at Cabot Money Management. (MarketWatch)
Teva in talks for generics rival Barr Pharmaceuticals
Israeli pharmaceutical giant Teva is in talks to buy New Jersey-based generics rival Barr Pharmaceuticals for up to $7.5 billion, according to several Israeli newspaper reports. If completed, the deal would be the biggest on record in Israel. (The Jerusalem Post) The $7.5 billion price tag would represent about a 50 percent premium for Barr. Israeli investment bank Excellence Nessuah said Teva had a net debt of $2.1 billion in March, and “a potential deal of this size would clearly entail raising more debt and a large equity payment.” Barr shares jumped 19 percent in extended trading. (MarketWatch) Teva shares dropped more than 1 percent early today. (Reuters)
EBay profits rise, growth slows
EBay reported a 22 percent rise in quarterly profit, to $460.3 million, slightly topping analysts’ expectations, on strong growth in advertising, international classifieds, and its PayPal unit. Revenue, at $2.2 billion, grew 20 percent. (BusinessWeek.com) But the average price for items sold on eBay sites fell 6 percent, and eBay said sales growth slowed in the quarter and would remain soft this quarter, sending its shares down more than 6 percent in extended trading. (Bloomberg) “In an environment where consumers have become price-sensitive, eBay is at a disadvantage because their product mix tends toward more expensive items,” said analyst John Aiken at Majestic Research. (The New York Times)
The Yankees’ coming yard sale
When 85-year-old Yankee Stadium is torn down this year, the Yankees will make some serious money selling off pieces of the historic ballpark. The blue plastic seats, at $1,000 a pop, could bring in $20 million on their own, and Derek Jeter’s locker could sell for up to $100,000 at auction. The New York Mets’ home, 44-year-old Shea Stadium, is also being demolished this year, but its memorabilia isn’t expected to fetch nearly as much—a Mets seat might sell for $350. “There is nothing in the world that compares to Yankee Stadium,” said Mike Heffner of Lelands Inc. auction house. “Anything in there is sellable.” (Bloomberg)
