July 13 - Summary of business headlines: World's number two economy slows; JPMorgan posts profits despite bad trades; NY Fed aware of interest rate manipulation since 2007; PFGBest founder reportedly admits to embezzlement. Jeanne Yurman reports.
And exhale...turns out the world's second biggest economy isn't chugging along as slowly as feared. China turned in a second quarter growth rate of 7.6 percent--sluggish like it was in 2009 but leaving room for the country's policymakers to juice up the economy more if needed. Peter Cardillo Chief Mkt. Economist -Rockwell Global Capital. SOUNDBITE: PETER CARDILLO, CHIEF MARKET ECONOMIST, ROCKWELL GLOBAL CAPITAL (ENGLISH) SAYING: "If you looked at the report you'll see that most likely that China is probably going to close the year with growth slightly over 8 percent and that's good news because I think that saves the global economy from running into recession." A bit of nail biting also ended over JPMorgan. The country's largest bank turned in a $5 billion profit despite $4.4 billion in bad trades. CEO Jaime Dimon said the losses, resulting from sour bets on corporate bonds, could still grow by up to $1.7 billion. He also admitted that the bank's traders may have tried to hide the extent of the losses earlier this year. JPMorgan's shares soared in a relief rally. Wells Fargo too, added to an upward move in financials, after America's number one mortgage lender reported double digit earnings growth. Despite some mixed economic data, markets overall embraced the day's not-so-bad news snapping a six-day losing streak. For the week the Dow eeked out a fractional gain while the Nasdaq lost ground. Turning to the Libor scandal, documents from the New York Federal Reserve Bank confirm that it was alerted to possible manipulation of a key interest rate as far back as August of 2007. The London interbank offered rate underpins trillions of dollars in loans and contracts globally. And the founder and CEO of a failed Iowa-based brokerage firm, PFGBest, was arrested for lying to regulators. After a recent attempt to end his life, Russell Wasendorf, Sr. admitted in a suicide note disclosed in court documents, that he had embezzled millions and forged bank statements for nearly two decades. As for Europe, thanks to China's news, shares rose to their highest level in more than a week. Jeanne Yurman, Reuters.