By Anna Prior
International companies trading in New York closed mixed Tuesday
as renewed worries about the so-called "fiscal cliff" in the U.S.
and a downgrade of France's credit rating, overshadowed positive
U.S. new residential construction data and reports that Israel and
Hamas were nearing a cease-fire deal.
The Bank of New York index of ADRs edged down 0.1% to 124.58.
U.S. Federal Reserve Chairman Ben Bernanke said the central bank
wouldn't have "infinite" ability to address the economic fallout
that would result from a failure by lawmakers to reach a compromise
in fiscal talks.
Meanwhile, France's finances were in the spotlight after Moody's
Investors Services late Monday cut the country's sovereign-credit
rating by one notch to Aa1 and kept the outlook negative,
expressing concern about France's uncertain fiscal outlook.
The European index was essentially flat at 118.46.
Deutsche Bank AG (DB, DBK.XE) plans to cut 500 jobs at its
subsidiary Sal. Oppenheim jr. & Cie. AG & Co. KGaA in the
coming year as part of its plan to slim operations at the private
bank, German newspaper Sueddeutsche Zeitung on Tuesday reported in
the advance release of an article to be published Wednesday. Shares
of the German bank slid 1.5% to $42.59.
ARM Holdings PLC (ARMH, ARM.LN) received a downgrade from
Raymond James, which cut its rating on the shares to outperform
from strong buy, although it raised its price target to $38 from
$36 and said the revision is not driven by estimate concerns. The
firm cited the stock's recent run and relative valuation versus
other high-profile secular growth stories as the reason for the
downgrade, while also saying in a note to clients that it sees
fewer relative catalysts near term. Shares of the U.K.-based
microchip designer fell 3.6% to $34.46.
France's Carrefour SA (CRRFY, CA.FR) said Tuesday it is selling
its 60% stake in Carrefour Indonesia to local partner CT Corp. for
525 million euros ($672.7 million), as the French retail giant
moves to refocus on core European operations. Shares rose 3.1% to
$4.72.
The Asian index fell 0.7% to 119.76.
Trina Solar Ltd. (TSL, K3KD.SG) widened its third-quarter loss
as the Chinese solar-products maker saw its margins hammered by a
double-digit revenue decline, although input costs slid as well.
Results missed Wall Street estimates and the company also cut its
shipments estimate for the year. Shares fell 8.8% to $2.19.
ShangPharma Corp.'s (SHP) third-quarter miss and full-year
top-line target cut comes as the small Chinese drug-research
outsource firm dealt with "industry headwinds and R&D-budget
fluctuations," noted CEO Michael Xin Hui. Still, he said that the
company's "top customers have been especially keen to expand their
scale and scope of business with us" in areas such as chemistry and
biologics, "and we believe that demand will be even stronger next
year." The company also plans to reduce capital-spending and
administrative costs to boost margins, which slumped in the
third-quarter as expenses rose faster than revenue. Shares, which
slid 6.3% on Monday, bounced back, rising 7.1% to $7.77.
The Latin American index rose 0.1% to 309.85 and the emerging
markets index fell 0.3% to 271.26.
Shares in Brazil's state-controlled utility Centrais Eletricas
Brasileiras SA (EBR, ELET6.BR), known as Eletrobras, continued to
clump as the firm is emerging as one of the clearest losers in the
government's drive to bring down electric power prices. The
administration will renew power utility licenses that start
expiring in 2015 but only if the concessionaires agree to major
revenue cuts. Eletrobras won't have a choice, as the government is
its major shareholder and the board of directors has recommended
renewing concessions. The firm estimates it will lose close to 10
billion Brazilian reais ($4.8 billion) in annual revenue as a
result. U.S.-listed shares, which fell nearly 15% on Monday, ended
the day down 5.8% to $3.57.
Write to Anna Prior at anna.prior@dowjones.com