national
Macy’s Q2 profit surges, boosts yearly outlook
NEW YORK — Macy’s on Wednesday reported a 64 percent increase in second-quarter earnings, becoming the first major retailer to post results following a downgrade of U.S. debt late last week that led to growing fears among consumers about the possibility of another recession.
The department store chain, which also boosted its full-year outlook, said its strategy of tailoring merchandise for local markets is helping it to overcome an overall sluggishness in the economy.
Macy’s results, which beat Wall Street estimates, cover the period before Standard & Poor’s downgrade came late Friday, but so far executives say business has continued strongly since then.
national
News Corp. income falls as probes continue
LOS ANGELES — News Corp., the media conglomerate under fire for phone hacking in Britain, said Wednesday that its net income for the last quarter fell 22 percent mainly because of the sale of social networking site Myspace. It also acknowledged for the first time that it is facing investigations into whether alleged phone hacking and police bribery occurred at its subsidiaries outside of the U.K.
Net income at the TV and newspaper giant controlled by Rupert Murdoch fell to $683 million, or 26 cents per share, in the three months through June. A year ago, the company earned $875 million, or 33 cents per share.
World
Asia in balancing act as prices rise, growth dims
SINGAPORE — Asia batted away the global recession sparked by the 2008 financial crisis. Fending off the latest wave of market turmoil may prove tougher.
World stocks were pummeled this week by the first-ever downgrade of the U.S. credit rating and evidence of stalling recoveries in the U.S. and Europe that could weaken demand for Asia’s exports of cars, gadgets, clothing and other goods.
Normally that would have Asian governments turning to interest rate cuts and extra spending but their options are constrained by inflation that has remained stubbornly high despite efforts to tame it.
— Associated Press
