USA/FILE: U.S. stocks falls for the third straight session on Fed uncertainty. Struggling smartphone maker Blackberry is reportedly the object of a buyout offer from a consortium led by Fairfax Financial.

Record ID: 187275

  • Title: USA/FILE: U.S. stocks falls for the third straight session on Fed uncertainty. Struggling smartphone maker Blackberry is reportedly the object of a buyout offer from a consortium led by Fairfax Financial.
  • Date: 23rd September 2013
  • Summary: NEW YORK CITY, NEW YORK, UNITED STATES (FILE -RTV300113080 JANUARY 30, 2013) (REUTERS) VARIOUS OF BLACKBERRY SMARTPHONES BEING HANDLED AND OPERATED MAN OPERATING BLACKBERRY HANDS ON BLACKBERRY WITH WOMAN'S VOICE EXPLAINING HOW IT WORKS
  • Embargoed: 8th October 2013 13:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: Business,Communications,Economy,Technology
  • Reuters ID: LVAEWD9HLHDUWD5KVCCHTV6JRUKB
  • Story Text: U.S. stocks declined for a third straight session on Monday (September 23) as Federal Reserve officials suggested the Fed could still begin scaling back its stimulus later this year.
    A looming political deadline in Washington added to pressure on the market, where losses over the past three sessions have erased the S&P 500's 1.2 percent gain last Wednesday when the Fed decided against reducing its economic stimulus measures.
    William Dudley, president of the Federal Reserve Bank of New York, said in a speech the timeline that Fed Chairman Ben Bernanke articulated in June for scaling back the central bank's stimulus measures is "still very much intact," as long as the economy keeps improving.
    At a separate event, Dallas Fed President Richard Fisher warned that by standing pat the Fed had hurt its credibility and said he had urged colleagues to support a $10 billion (USD) reduction in the Fed's bond-buying program at last week's meeting.
    Banks led the S&P 500's decline, with Citigroup down 3.2 percent at $49.57, a day after the Financial Times reported Citi had a significant drop in trading revenue during the third quarter. The S&P financial index lost 1.5 percent. Shares of JPMorgan Chase were down 2.5 percent at $51.46.
    The Fed last week decided against reducing asset purchases from the current $85-billion monthly pace, surprising many investors who had anticipated a change in policy.
    The Dow Jones industrial average was down 49.71 points, or 0.32 percent, at 15,401.38. The Standard & Poor's 500 Index was down 8.07 points, or 0.47 percent, at 1,701.84. The Nasdaq Composite Index was down 9.44 points, or 0.25 percent, at 3,765.29.
    Struggling smartphone maker BlackBerry on Monday signed a tentative deal to be acquired by a consortium led by its biggest shareholder, setting a $4.7 billion floor in the auction of the Canadian company that pioneered on-the-go email.
    BlackBerry, 10 percent owned by Prem Watsa's Fairfax Financial Holdings Ltd, has been on the block since August after a few difficult years.
    Previously known as Research In Motion, the company was late to the game of consumer-friendly touchscreen smartphones, and it bled market share to the iPhone from Apple Inc and devices using Google Inc's Android operating system.
    The offer comes from a consortium led by Fairfax that has offered $9 a share in cash to take BlackBerry private, away from constant Wall Street scrutiny. The group is seeking financing from Bank of America Merrill Lynch and BMO Capital Markets to complete the deal.
    BlackBerry has until Nov. 4 to seek superior offers, which is also the deadline for the Fairfax-led group to conduct its due diligence.
    U.S.-listed shares of Blackberry closed up 1.1 percent at $8.82
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