U.S. Inflation Holds in July, Carlyle to Acquire Getty Images

Arthi Gupta
15 Aug, 2012
New York City

U.S. indexes dropped after consumer prices remained unchanged in July. Carlyle agreed to acquire Getty Images for $3.3 billion. Global Payments agreed to buy Accelerated Payment for $413 million in cash. Abercrombie quarterly net fell but Deere earnings rose.

[R]10:25 AM New York – U.S. indexes dropped after consumer prices remained unchanged in July. Carlyle agreed to acquire Getty Images for $3.3 billion. Global Payments agreed to buy Accelerated Payment for $413 million in cash. Abercrombie quarterly net fell but Deere earnings rose.[/R]

U.S. indexes traded sideways and were fractionally up after first of trading and consumer prices were flat in July for a second month in a row.

The Bank of England policymakers were unanimous in retaining quantitative easing program at £375 billion and the interest rate unchanged at 0.50%, according to the minutes of the meeting held on August 1 and 2.

The UK jobless claims fell unexpectedly in July a day after the euro zone reported less than expected decline in the economic activities in the second quarter.

Standard & Poor''s downgraded Nokia to ''BB-.''

Australia''s consumer confidence declined in August, according to a report released by Westpac and the Melbourne Institute today. The consumer sentiment index dropped 2.5% to 96.6 in August.

U.S. Consumer Prices Hold Flat in July

The U.S. Consumer Price Index was unchanged in July on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today.

Excluding food and energy prices, the core consumer price index rose 0.1% in July after rising 0.2% in each of the four previous months.

Separately, conditions for New York manufacturers deteriorated in August, according to a report released by the Federal Reserve Bank of New York today.

The New York Fed said its general business conditions index slipped to -5.9 in August from 7.4 in July.

Carlyle to Acquire Getty Images

The Carlyle Group, the private equity group agreed to acquire Getty Images, Inc., a global creator and distributor of still imagery, video and multimedia products, from Hellman & Friedman for $3.3 billion.

Carlyle will acquire a controlling stake in Getty Images, while Getty Images co-founder and Chairman Mark Getty and the Getty family will roll substantially all of their ownership interests into the transaction.

Getty Images management, including Co-Founder and Chief Executive Officer Jonathan Klein, will also invest significant equity in the company.

Lloyds Sells Interest in Private Equity

Lloyds Banking Group plc agreed the sale of a portfolio of private equity-related investments with around £1.05 billion gross assets and the transfer of undrawn commitments of £220 million to a fund financed by Coller International Partners VI for a cash consideration of about £1.03 billion.

Global Payments to Buy Accelerated Payment Technologies

Global Payments Inc., an electronic transaction processing solutions provider agreed to acquire Accelerated Payment Technologies from Great Hill Partners for $413 million in cash.

The transaction is expected to close during Global Payments'' second fiscal quarter 2013.

Earnings Review

Abercrombie & Fitch Co. ((ANF)), the specialty retailer reported second quarter net sales climbed 4% to $951.41 million from the comparable period in 2011. Total comparable-store sales for the quarter decreased 10% relative to last year.

Net income dropped to $15.52 million or 19 cents per diluted share, from $32.03 million or 35 cents per share in the prior-year quarter.

Deere & Company ((DE)), the farm and construction machinery maker said third quarter revenues rose 15% to $9.59 billion. Net income attributable to the company rose to $788 million or $1.98 per diluted share compared to $712.3 million or $1.69 per share in the prior year.

Staples, Inc. ((SPLS)), the office supplies retailer reported second quarter total company sales decreased 6% to $5.50 billion. Net income attributable to the company declined to $120.43 million or 18 cents per diluted share, from $176.44 million or 25 cents per share in the 2011 period.

VimpelCom Ltd. ((VIP)), the telecommunications services provider reported second quarter total operating revenues grew 4% to $5.75 billion from $5.54 billion a year ago. Profit attributable to owners of the parent surged 108% to $488 million or 30 cents per diluted share from $235 million or 15 cents per share last year.

Total mobile subscriber base increased 8% annually to 208 million in the quarter.