TRADE
Wednesday, December 20, 2006; Page D02
TRADE
China Not Called Manipulator
Treasury Secretary Henry M. Paulson Jr. declined to brand China a currency manipulator, saying it is taking steps to make the yuan more flexible. In its semiannual foreign-exchange report, the Treasury Department tempered language in the May release, which had criticized China for being "far too slow and hesitant" and had said delay was "unjustified." This time, the department said China's effort to boost flexibility was "considerably less than is needed."
ECONOMY
  U.S. Treasury Secretary Henry M. Paulson Jr. is greeted by Chinese President Hu Jintao during his visit to Beijing last week. (By Greg Baker -- Getty Images) |
Producer Prices Increase
Prices paid to U.S. producers rose 2 percent in November from the previous month, led by higher prices for energy and light trucks, the Labor Department said.
Separately, the Commerce Department said that housing starts rose at an annual rate of 1.588 million in November, more than forecast and 6.7 percent higher than in October. Building permits declined.
WALL STREET
Discover to Be Spun Off
Morgan Stanley said that next year it will spin off its Discover credit card business in a bid to pump up shareholder value. For years, shareholders have urged Morgan Stanley to dump Discover because it has been steadily losing ground in a field of larger competitors.
Morgan Stanley also said its fourth-quarter profit rose 11 percent from the corresponding period a year earlier, to $2.21 billion. Net revenue rose 24 percent, to $8.63 billion. Full-year profit rose 51 percent, to $7.47 billion. Net revenue increased 26 percent, to $33.86 billion.
MERGERS & ACQUISITIONS
Equity Firms Purchase Harrah's
Harrah's Entertainment, the world's largest casino company, accepted a $17.1 billion offer from Apollo Management and the Texas Pacific Group in one of the largest private-equity buyouts ever. The private equity firms will also assume $10.7 billion in debt. The offer is 35 percent higher than Harrah's closing price on Sept. 29, the last trading day before the initial bid was announced.
Ericsson to Buy Router Firm
Ericsson, the world's largest maker of wireless-network equipment, agreed to buy Redback Networks for $2.1 billion, accelerating competition with Cisco Systems in the market for Internet routers. Redback will retain its management team and operate as a unit of Stockholm-based Ericsson, the San Jose company said.
EXECUTIVES
