BUSINESS BRIEFS
Capitol One's earnings lower than expected
Associated Press
CHARLOTTE, N.C. — Capital One Financial Corp. said its 2007 earnings will fall short of its previous expectations, sending its stock to a new 52-week low and reaffirming the fact that turmoil in the nation's credit markets continues.
The McLean, Va.-based credit card company said yesterday that increased loan delinquencies and additional legal reserves in the fourth quarter will cause the company to report a fourth-quarter profit of 60 cents per share and full-year earnings of about $3.97 per share, below its prior forecast of "about $5 per share."
The news, which was announced early yesterday morning, confirmed fears by some analysts that the collapse of the subprime mortgage market has hurt other credit classes.
AMERICAN EXPRESS EXPECTATIONS LOW
NEW YORK — American Express Co. expects slower spending and more missed payments on credit card bills to hamper its profit throughout 2008, the company said yesterday.
While rich people are still doing fine, American Express said the slumping housing market has begun to take its toll on the American consumer.
Charges on the company's roughly 84.7 million cards began to tail off in December, American Express said, and more clients failed to repay their debts.
EUROPEAN CENTRAL BANKS STAND PAT
LONDON — The European Central Bank and the Bank of England kept their benchmark interest rates on hold yesterday, both torn between the opposing challenges of higher inflation and worries about economic growth.
Those two factors could put the central banks on different paths in the coming months, with the ECB striking a hawkish note in the face of strong euro-zone inflation while the Bank of England is widely expected to deliver a cut next month to restore shaky consumer confidence.
CHINA WEATHERS WARNINGS, RECALLS
BEIJING — China's global trade surplus soared nearly 50 percent last year to a record despite an avalanche of safety warnings and recalls of Chinese-made products abroad, according to data released today.
The sharp rise could add to pressure on Beijing to act on currency controls and import barriers, possibly fueling demands by some American lawmakers for trade sanctions.
The annual trade surplus ballooned to $262.2 billion, up 47.7 percent from 2006, the official Xinhua News Agency said, citing the General Administration of Customs.
That was below the $300 billion figure forecast by some Chinese economists but still represented strong gains at a time of worldwide concern about the safety of Chinese goods ranging from toothpaste and seafood to tires and toys.
CRUISE SHIP'S TILT BLAMED ON CREW
ORLANDO, Fla. — Improper training and bad steering by a Princess Cruises ship's second officer caused the vessel to tilt suddenly in 2006, injuring almost 300 people, the National Transportation Safety Board determined yesterday.
The NTSB said the Crown Princess' captain and crew failed to realize how fast they were going in shallow water, which threw the ship off course. The second officer disengaged autopilot to correct it, then steered the wrong way, the board determined.
"The errors of the captain and staff captain in operating the integrated navigation system resulted from inadequate training," the board said in a synopsis of the accident.
