Post date: Jun 14, 2011 2:22:34 PM
Summary of business headlines: Facebook IPO likely next year -report; Greece debt downgraded to lowest in the world; Wall Street finishes little changed, oil prices drop; Carstens says chances of Lagarde getting IMF post are "quite high."
USA-USCLOSE - Speculation continues to grow surrounding a possible Facebook initial public offering. CNBC is reporting Facebook could file for an IPO as early as October or November, with the debut sometime in the first quarter of next year. According to the report the IPO could value the popular social media company at more than $100 billion. Social networking companies are highly sought after investments right now, professional website LinkedIn had a solid debut and group deals website Groupon plans to raise up to $750 million when its IPO comes to market.
As more than 20,000 Greek demonstrators rally against government spending cuts they say are too difficult to bear, Standard & Poor's says not enough is being done. So the ratings agency cut its debt rating on Greece to the lowest in world, saying a default is very much likely. The downgrade makes it more costly for the Greek government to borrow.
Mexican Central Bank Governor Agustin Carstens was in Washington as he lobbies for the job as the head of the IMF, he concedes he is up against a tough competitor - France's Christine Lagarde.
AGUSTIN CARSTENS, MEXICO CENTRAL BANK GOVERNOR SAYING:
"The chances that the Ms. Lagarde will be managing director are quite high and I'm sure she will make a good managing director, no? But it would have been much better if she was selected or elected on a more transparent process."
On Wall Street - the market was once again unable to hold on to significant gains, finishing little changed.
Crude oil fell close to a one-month low above $97 a barrel.
There was only modest buying across Europe with Greek's debt crisis still in the foreground.
Conway Gittens, Reuters