June 25 - Summary of business headlines: S&P loses monthly gain as euro doubts rise; Credit Suisse readies job cuts -sources; U.S. new home sales reach two-year high; Microsoft buys Yammer. Conway G. Gittens reports.
Wall Street bets a meeting of European leaders later this week will be a bust - causing June's gains for the S&P 500 to go up in smoke. The Dow suffered its second triple-digit drop in three sessions and the Nasdaq tumbled just about 2 percent. Barbara McKenzie of Principal Global Investors believes Europe will keep investors on edge. SOUNDBITE: BARBARA MCKENZIE, CHIEF OPERATING OFFICER, PRINCIPAL GLOBAL INVESTORS (ENGLISH) SAYING: "I think it's just been this steady stream of bad news that just continues everyday in front of folks. But we have great optimism that people will come back into the equity markets once things settle down a little bit more in Europe." Case in point: Credit Suisse is planning to send out pink slips, according to several sources. The job cuts will affect 30 percent of senior investment banking staff in European operations. Euro fatigue overshadowed housing optimism. American home buyers showed signs of life in May gobbling up new homes at the fastest pace in two years. Prices were higher compared to a year ago, further evidence of slow yet steady improvement. Microsoft is enlarging its social abilities - buying Yammer, which operates private internal corporate social networks for $1.2 billion. Anheuser-Busch InBev is thirsty to get a bigger piece of Mexico's growing beer market. The world's largest brewer is in talks to buy the 49.6 percent in Grupo Modelo it does not already own. Modelo also produces Corona, the top selling beer import in the U.S. European markets suffered the same fate as Wall Street - as investors expect little from an EU summit this week. Conway Gittens, Reuters