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U.S. Morning Call: McGraw-Hill--Defense strong against DOJ

Tuesday, February 12, 2013 - 03:53

Feb 12 - McGraw-Hill says it has very strong defenses against the DOJ's lawsuit.

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-- good morning call for Tuesday it's all about earnings today let's start with McGraw-Hill. The company say it has very defensive against the DOJ is five billion dollar lawsuit. To put into perspective -- five billion is about half of what McGraw-Hill is worth. A resolution to the lawsuit is central to shareholder interest and S&P brings it about three quarters of the profits today earnings were in line with estimates. Shares of the company down 20% since the government probe was announced last week next step -- got Clearwire we've heard a lot about that cell phone carrier since -- and dish networks set their sights on it. The earnings call today expect investors to question its future ownership. Sprint which owns part of the company badly needs to buy the rest of it if it wants to seal the deal with Softbank. But large public shareholders have been vocal about the opposition to the deal the low ball offer just doesn't compare Charlie Ergen is. He's offered to -- the spectrum for 2.3 billion dollars. A -- outlook and Clearwire and a better position to build for the future analysts say they also forced Britain to up its bid. We've also got Avon reporting just minutes ago -- quarterly loss of a 162 million. The cosmetics seller also saw revenue fall but the company saw signs improving its business in on sold 2% more items in the quarter. And a number of sales reps rose 1%. The total return fund the world's largest bond fund run by him because they'll grows slashed its mortgage holdings the lowest level since August 2011. The decision was driven by the prospect of higher interest rates and inflationary pressures. On the other hand it 285. Billion dollar -- increase its exposure to US treasury holdings to 30% from 26%. The most since July. Right now you -- tenure yields close to one point 96%. The Pimco bond was up 10% in 2012 surpassing 88% of its peers that's why Bill Gross is dubbed the bond king. A couple of banks are stocks to watch this morning starting across the pond with Barclays. The troubled British bank tossing out at least 3700. Jobs. And shrinking its investment banking unit to -- part of new CEO -- Jenkins overhaul of the bank dubbed project transform. -- hope to get back into the public's good graces his cutting bonuses to -- 17%. On average. Jenkins also aims to cut the bank's cost -- bet base to 26 point two billion dollars in 2015. And lift its dividend to achieve a 30% payout ratio. Shares up over 5% in the premarket on the New York Stock Exchange. One bank likely not too happy with Barkley is right now is Bank of New York Mellon that firm taking -- 850 million dollar charge. After losing its high -- tax case to the IRS. Over artificial board tax credit for real loans with Barkley is. The charges more than Mallon has earned -- any single quarter over the past three years but the bank says it still expects to be well capitalized. Not to market the stock futures are pointing to a lower open investors still bullish equities in the long term. President Obama set to deliver his annual State of the Union Address at 9 PM eastern today. Expected to describe his plan for spurring the economy offering proposals for investments in infrastructure. Manufacturing clean energy and education. -- -- Tuesday morning call remembered follow us on Twitter at Reuters Insider and get more orders videos at Reuters dot com slash Reuters TV. I'm Lisa Bernhard this is.

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U.S. Morning Call: McGraw-Hill--Defense strong against DOJ

Tuesday, February 12, 2013 - 03:53

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