Capital One to buy back $1 billion in shares

Tuesday, July 2nd, 2013 | Finance News

(Reuters) - Credit card issuer Capital One Financial Corp said it would buy back shares worth up to $1 billion after it completed the sale of its Best Buy Co Inc portfolio.

Capital One is selling its $7 billion portfolio of private label and co-branded credit card accounts linked to electronics retailer Best Buy to Citigroup , a deal expected to close in the third quarter.

The credit card issuer passed a Federal Reserve stress test in March, under which the regulator allowed it to raise its dividend and repurchase shares.

The company raised its quarterly dividend to 30 cents per share from 5 cents per share in May after receiving Fed's approval.

Shares of Capital One, which has a market capitalization of about $37.2 billion, closed at $63.59 on Monday on the New York Stock Exchange.

(Reporting by Aman Shah in Bangalore; Editing by Saumyadeb Chakrabarty)


Hyundai recalls 5,200 Azera sedans in U.S. for airbag sensor issue

Tuesday, July 2nd, 2013 | Finance News

DETROIT (Reuters) - Hyundai Motor Co is recalling about 5,200 Azera sedans in the United States to address an issue where the airbag may deploy with less or greater force than needed in an accident.

The South Korean automaker is recalling the 2012 and 2013 model-year cars because the occupant detection system may fail to properly differentiate whether the front-seat passenger occupant is an adult, child or a child restraint seat, according to documents filed with the U.S. National Highway Traffic Safety Administration. The result could be the bags deploying with the incorrect force and that could lead to increased risk of injury.

Hyundai determined that a change in the fabric material on the sensor mat could impact the sensor's ability to properly classify an occupant, NHTSA said.

A review of warranty claims found several instances indicating that the airbag warning light had illuminated with a diagnostic code for a wet seat, according to NHTSA.

Hyundai will notify owners and recalibrate the airbag system, NHTSA said. Hyundai expects to begin notifying owners in the third quarter.

(Reporting by Ben Klayman; editing by Sofina Mirza-Reid)


Futures driven higher by manufacturing

Tuesday, July 2nd, 2013 | Finance News

NEW YORK (AP) — U.S. stock futures are rising with industry watchers expecting automakers to post banner sales.

The government also releases its May factory orders report Tuesday and economists are looking for signs of an extended recovery in manufacturing.

Dow Jones industrial futures are up 36 points to 14,918. The broader S&P futures have added 4.5 points to 1,611.20. Nasdaq futures are up 10.5 points to 2,927.50.

The confluence of easy credit, low interest rates and smart, new models are driving auto sales sharply higher this year. Analysts who follow the industry don't see that changing any time soon.

When automakers post June sales, most analysts are expecting an increase of between 6 percent and 8 percent.

And the Commerce Department is expected to report that factory orders rose for the second straight month.