Reuters Business Summary

Merrill to sell $8.5 bln stock after big write-down

NEW YORK (Reuters) - Merrill Lynch & Co MER.N said on Monday it will take a $5.7 billion third-quarter write-down as it unloads huge amounts of risky debt, and will raise $8.5 billion by selling new stock. The Wall Street investment bank and brokerage announced its plans less than two weeks after posting a $4.9 billion second- quarter loss, hit by $9 billion of write-downs in that period.

Loss-making Alcatel-Lucent dumps CEO and chairman

PARIS (Reuters) - Telecoms gear maker Alcatel-Lucent (ALUA.PA: 行情) on Tuesday ditched its chairman and chief executive as it tries to galvanize a still-fragile merger following a series of profit warnings and falling market share. Chief Executive Pat Russo, long rumored to be on an ejector seat at the world's largest provider of fixed-line telecoms equipment, will leave before the end of the year while Serge Tchuruk, the architect of the 2006 merger, will leave on October 1.

Treasury and banks kick-start home financing tool

WASHINGTON (Reuters) - The Treasury and the nation's four biggest banks on Monday said they will kick-start a market for an investment product to support home financing in the latest effort to spur a slumping housing market. Bank of America (BAC.N: 行情), Citigroup (C.N: 行情), JPMorgan Chase (JPM.N: 行情) and Wells Fargo (WFC.N: 行情) said they planned to begin issuing covered bonds, which are secured by pools of assets like home loans.

British Airways says in merger talks with Iberia

LONDON (Reuters) - British Airways (BAY.L: 行情) said on Tuesday it is in talks with Spanish carrier Iberia (IBLA.MC: 行情) about a potential all-share merger, sending shares in the UK airline up nearly 9 percent. Britain's flagship carrier said in a statement the discussions had the support of both companies, although it expected it would take several months before terms could be agreed.

Hartford Q2 operating earnings down

NEW YORK (Reuters) - Hartford Financial Services Group Inc's (HIG.N: 行情) earnings fell in the second quarter, hurt by a surge in claims from tornado damage and lower investment returns, but the results still beat Wall Street expectations. Hartford, a large life and property-casualty insurer, said on Monday that operating earnings fell 9 percent to $696 million, or $2.22 a share. On that basis, analysts on average expected the company to earn $2.10 a share, according to Reuters Estimates.

Colgate-Palmolive profit rises

CHICAGO (Reuters) - Colgate-Palmolive Co (CL.N: 行情) on Tuesday reported a 19 percent jump in quarterly profit as price increases and sales in emerging markets and North America helped offset soaring commodity costs and weakness in parts of Western Europe. The weaker dollar also helped lift sales, contributing to earnings that exceeded analysts estimates.

Futures edge up as oil price falls