Warren Buffett: What to watch for in his investor letter

Warren Buffett is about to release his annual letter to investors. There's a lot of stuff to learn from it.

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U.S. economy slowed in fourth quarter, but growth outlook still favourable

U.S. economic growth braked more sharply than initially thought in the fourth quarter amid a moderate increase in business inventories and a wider trade deficit, but strong domestic demand brightened the outlook. Gross domestic product expanded at a 2.2 percent annual pace, revised down from the 2.6 percent pace estimated last month, the Commerce Department said on Friday. The economy grew at a 5 percent rate in the third quarter. Businesses accumulated $88.4 billion worth of inventory in the fourth quarter, far less than the $113.1 billion the government had estimated last month.

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Hyundai recalls more than 200,000 Elantras over steering problem

Hyundai Corp is recalling 204,768 Elantras because of a power steering defect that might cause the cars to suddenly revert to manual steering, the company said Saturday in a report filed with U.S. auto safety regulators. The recall affects four-door Elantra sedans produced from June 1, 2008, to April 30, 2010, and 2009-10 model Elantra Touring hatchbacks, Hyundai said in a report on the National Highway Traffic Safety Administration website. The carmaker said it had understood that the loss of power steering assist has not been considered a safety defect in the United States when manual steering was maintained. "More recently, however, the industry has increasingly handled similar issues through safety recalls due to the greater driver effort at low vehicle speeds," Hyundai said.

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Confident Airbus juggles jet output and pays record dividend

Airbus Group (AIR.PA) defied warnings of a slowdown in the jetliner market with a steep production boost for its top-selling A320 and announced its biggest ever dividend. The world's second-largest aerospace group after Boeing (BA.N) said it would increase production of the A320 jet family to a record 50 a month in early 2017. "Airbus has bitten the bullet on the A330," said Edison Investment Research analyst Sash Tusa, adding that the move was widely expected. Airbus Group Chief Executive Tom Enders dismissed recent market concerns that the commercial aerospace cycle has peaked.

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Global investors lift exposure to stocks as major markets touch record highs

Global investors increased their bets on stocks during February as major equity markets broke through all-time highs, fuelled by the promise of more monetary stimulus, Reuters' monthly asset allocation poll showed. As around 20 central banks have cut interest rates since the start of 2015, and with the European Central Bank set to launch quantitative easing next month, investors expect loose monetary policy to stir growth and boost corporate earnings. The monthly asset allocation poll, covering 47 fund managers and chief investment officers in the United States, Europe and Japan, found that the average recommended exposure to stocks in global balanced portfolios rose to 50.7 percent, the highest level since last September, from 49.5 percent a month earlier. The increased exposure to stocks came largely at the expense of alternative investments, a category that includes commodities, private equity and hedge funds.



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U.S. economy slowed in fourth quarter, but growth outlook still favorable

U.S. economic growth braked more sharply than initially thought in the fourth quarter amid a moderate increase in business inventories and a wider trade deficit, but strong domestic demand brightened the outlook. Gross domestic product expanded at a 2.2 percent annual pace, revised down from the 2.6 percent pace estimated last month, the Commerce Department said on Friday. The economy grew at a 5 percent rate in the third quarter. Businesses accumulated $88.4 billion worth of inventory in the fourth quarter, far less than the $113.1 billion the government had estimated last month.

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Airbus Group CEO says not ready for retirement: report

Airbus Group Chief Executive Tom Enders has given the strongest hint yet that he may seek a new term as head of Europe's largest aerospace company, telling a French newspaper he does not feel ready for retirement when his mandate expires next year. Asked by Le Journal du Dimanche about his priorities for the coming year, the last before his term expires in 2016, Enders said, "Let me clarify one thing: I don't plan to retire in a year's time. Enders joins his direct rival, Boeing CEO Jim McNerney, in keeping the industry guessing over his future. Enders said in Sunday's Le Journal du Dimanche interview that cashflow and profitability would be the two main Airbus priorities this year.

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Buffett: don't expect another 50 years of outperformance at Berkshire

In his 50 years at the helm of Berkshire Hathaway Inc, Warren Buffett has transformed a failing textile company into a sprawling conglomerate that has vastly outperformed most of the rest of corporate America. In the 84-year-old's annual shareholder letter released on Saturday, Buffett said Berkshire has grown so large - 751,000 times its original net worth per share - that the future pace of gains "will not come close" to those of the past. "The numbers have become too big," Buffett wrote. Within 10 to 20 years, Buffett said, Berkshire's girth could require whoever then runs the Omaha, Nebraska-based company to consider steps he has resisted, such as paying dividends or conducting "massive" share repurchases.

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Wall Street ends down after data; posts strong gains for month

The S&P 500 posted its best monthly gain since October 2011 on Friday, but U.S. stocks ended lower for the day as U.S. economic growth slowed more sharply than initially thought in the fourth quarter. The S&P 500 gained 5.5 percent for the month, while the Nasdaq rose 7.1 percent, its best monthly performance since January 2012. The strong gains have pushed the Nasdaq within striking distance of the 5,000 mark and record highs set in March 2000.

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Buffett says 'sprawl' is good, but may not be good enough

Warren Buffett wants to buy more businesses to add to Berkshire Hathaway Inc's (BRKa.N) "sprawl," but cautioned it may not keep the company he has run for 50 years from evolving into something rarely used to describe it up until now: average. In his annual letter to shareholders, Buffett on Saturday said Berkshire's huge balance sheet gives him the power to funnel capital to some of the more than 80 operating units that deserve it, while its decentralized structure makes it the "home of choice" for many businesses looking to sell. "Berkshire is now a sprawling conglomerate, constantly trying to sprawl further," Buffett wrote. Berkshire's book value per share, Buffett's favored growth measure, has after taxes risen less than the Standard & Poor's 500 (.SPX) index including dividends, pre-tax, in five of the last six calendar years, after dwarfing the index in the prior 44 years.

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Herbalife cuts pay of CEO Johnson 36 percent after missed targets

Herbalife Ltd (HLF.N) cut the pay of Chief Executive Michael Johnson 36 percent for 2014 after the nutrition and weight loss company failed to meet performance goals set for him and other top executives, according to a securities filing on Friday. Herbalife said Johnson, who is also chairman, received total compensation of $6.73 million last year, down from $10.5 million in 2013, mainly because he did not receive the incentive plan compensation of $3.7 million he got the prior year. Herbalife has been closely watched since activist investor William Ackman accused the company of running a pyramid scheme in 2012, while rival investor Carl Icahn became the company's biggest owner in 2013. Herbalife, being investigated by state and federal regulators, has denied Ackman's charges.

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Warren Buffett says Berkshire has 'right person' as heir

Warren Buffett, in his 50th anniversary letter to shareholders, said on Saturday that Berkshire Hathaway had finally chosen the right person to succeed him. "Both the board and I believe we now have ...

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Berkshire Hathaway net falls, operating profit rises

Warren Buffett's Berkshire Hathaway Inc on Saturday said profit declined 17 percent in the fourth quarter from a year earlier, reflecting lower investment gains, though operating results improved. Net ...

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Germany backs Greek extension but bailout fatigue grows

Germany's parliament approved an extension of Greece's bailout on Friday but a record number of dissenters from Angela Merkel's conservatives underscored growing scepticism in Berlin about whether a new Greek government can be trusted to deliver on its reform pledges. With Finance Minister Wolfgang Schaeuble promising not to let Greece "blackmail" its euro zone partners, 542 members of the Bundestag voted "yes" to the extension, while 32 opposed it and 13 abstained.

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HSBC not the troublemaker made out to be, rival Swiss banker says

HSBC (HSBA.L), in the spotlight after details emerged about how its Swiss unit allegedly helped clients dodge taxes, isn't the troublemaker it is currently depicted as, the head of a rival private bank was quoted saying on Saturday. "HSBC has been described as the troublemaker in class, and it is not," Carlos Esteve, founder and CEO of Geneva-based Heritage, said in an interview with Swiss daily Le Temps. "HSBC was among the first to take steps to regularize its clients. The comments are noteworthy because the unspoken rule among Swiss private bankers is to avoid directly commenting on rivals, a rare exception being three years ago when UBS (UBSG.VX) head Sergio Ermotti suggested Zurich's main banking thoroughfare, Bahnhofstrasse, was full of banks which took untaxed money, as did UBS.

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Jobs report may test market's complacency

The U.S. stock market has been quiet this week - too quiet. Wall Street has traded in a tight range of late, with both volatility and trading volumes drying up as the earnings season winds down and Federal Reserve Chair Janet Yellen's recent Congressional testimony delivered no surprises. About 238,000 jobs are expected to have been added in February, according to the non-farm payroll report that will be released on Friday, down from the 257,000 added in January. "Economic data will be the biggest driver of market moves over the next month, and the key one is the jobs report," said Jim McDonald, chief investment strategist at Chicago-based Northern Trust Asset Management.

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Bubble or bust? Cramer says market not bubblicious

Mad Money's Jim Cramer shares his take on whether this market is in a bubble and if tech is well positioned for more IPOs.

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Bubble or bust? Cramer says market not bubblicious

Mad Money's Jim Cramer shares his take on whether this market is in a bubble and if tech is well positioned for more IPOs.

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Many traders fret over specter of Nasdaq 5000

Jeff Hirsch, The Stock Trader's Almanac, and CNBC Senior Contributor Larry Kudlow discuss the psychological importance of March for the Nasdaq.

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House rejects three-week DHS funding extension

By David Lawder and Richard Cowan WASHINGTON (Reuters) - The House of Representatives on Friday failed to approve a stopgap funding bill for the U.S. domestic security agency, increasing the threat of a partial agency shutdown at midnight. With just hours left before spending authority expires for the Department of Homeland Security, a three-week spending bill was rejected in the House by a 224-203 vote, leaving lawmakers with few options ahead of the deadline. Congressional leaders made no immediate comment about their next step in a political battle sparked by Republican efforts to block funding for Democratic President Barack Obama's executive orders on immigration by attaching provisions to the department spending bill. Created after the Sept. 11, 2001 attacks, the department is a super-agency that encompasses the Coast Guard, the Secret Service, the Transportation Security Administration and immigration, customs and emergency management authorities.

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Dudley, top U.S. economists urge later Fed rate hike

Raising interest rates too late is safer than acting too early, an influential Federal Reserve official said on Friday, endorsing a high-profile research paper that argues the U.S. economy, given time, can rebound to the strong growth rate to which Americans are accustomed. The paper by four top U.S. economists, presented on Friday to a roomful of powerful central bankers in New York, argues the Fed would be wise to keep rates at rock bottom for longer than planned and then tighten monetary policy more aggressively. New York Fed President William Dudley, who offered a critique of the paper, cited currently low inflation and warned against being too anxious to tighten monetary policy. The U.S. central bank is in the global spotlight as it weighs when to lift rates after more than six years near zero, and how quickly to tighten policy thereafter.

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Lockheed, Sikorsky venture awarded $2.0 billion helicopter support deal

The U.S. Navy has awarded a joint venture of Lockheed Martin Corp and Sikorsky Helicopter a contract worth $2 billion to service the Navy's H-60 helicopters through Jan. 31, 2020, the Pentagon announced ...

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Louisville Slugger parent mulls sale of famed batmaker

Hillerich & Bradsby Co., the parent of Louisville Slugger, is exploring a sale and has spoken with buyers including Amer Sports Oyj about a deal, a person with knowledge of the matter said. The family-owned business, based in Louisville Kentucky, is likely to be valued at less than $100 million, said the person, who asked not to be named because the information is private. Hillerich was a woodworking shop when John A. Hillerich began making bats there in 1884 -- with the brand registered a decade later.

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Next week: Economists see robust Feb. jobs report, Nasdaq eyes 5000

Midday Movers takes a look at what might be moving markets next week



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Southwest Airlines nears end of inspections that grounded 128 planes

Southwest voluntarily removed the aircraft from service and disclosed the matter on Tuesday to the U.S. Federal Aviation Administration, which then said it could operate the aircraft for a maximum five days while it completed the checks. The checks resulted in about 80 Southwest flight cancellations on Tuesday and about 15 cancellations on Wednesday but no others since.

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Southwest Airlines nears end of inspections that grounded 128 planes

Southwest voluntarily removed the aircraft from service and disclosed the matter on Tuesday to the U.S. Federal Aviation Administration, which then said it could operate the aircraft for a maximum five days while it completed the checks. The checks resulted in about 80 Southwest flight cancellations on Tuesday and about 15 cancellations on Wednesday but no others since.

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An economic riddle: Where are all the construction workers?

Despite good wages and plenty of available jobs, the number of younger people going into construction work is lagging badly. Can more millennials be enticed to take up carpentry?

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Jobs report may test market's complacency

The U.S. stock market has been quiet this week - too quiet. Wall Street has traded in a tight range of late, with both volatility and trading volumes drying up as the earnings season winds down and Federal Reserve Chair Janet Yellen's recent Congressional testimony delivered no surprises. About 238,000 jobs are expected to have been added in February, according to the non-farm payroll report that will be released on Friday, down from the 257,000 added in January. "Economic data will be the biggest driver of market moves over the next month, and the key one is the jobs report," said Jim McDonald, chief investment strategist at Chicago-based Northern Trust Asset Management.

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Former AIG head Benmosche dies at 70

Robert Benmosche, former president and chief executive officer of insurer American International Group , died Friday at 70, the company said in a statement. Benmosche, who headed the company between August ...

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Former AIG head Benmosche dies at 70

Robert Benmosche, former president and chief executive officer of insurer American International Group , died Friday at 70, the company said in a statement. Benmosche, who headed the company between August ...

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Congressional cowards push America to the brink -- again

The fight to fund the Department of Homeland Security is just the latest in a series of political "crises" both parties have inflicted on the nation in recent years, with no end in sight.



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Class of 2014, You're hired!

The job market is looking up for new college graduates. That's according to the National Association of Colleges and Employers.



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Got $172? That's the typical Obamacare penalty

About 6 million households will owe Uncle Sam money for failing to purchase health insurance in 2014.



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Greenspan: Economy 'not strong'

Former Fed chairman Alan Greenspan provides insight into job growth and how the Fed moves the markets. Greenspan says capital investment is key to productivity growth.

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Exclusive: Chicago rating downgrade could end swaps deals - Moody's

Chicago's rating downgrade to Baa2 by Moody's Investors Service on Friday could terminate four interest-rate swap agreements, costing the city about $58 million, according to the credit rating agency. The swaps, which the city uses to hedge interest-rate risk on its variable-rate bonds, can be ended by bank counterparties if Chicago's credit ratings fall below a specified level. Moody's also noted that the downgrade to Baa2, two notches above the junk level, moves the city closer to additional termination triggers included in other interest-rate swap agreements. It added that Chicago can cover the initial termination payment.

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#TheDress goes viral: Sales soar 347%

A social media frenzy about the color of a dress is bringing fame and fortune for one small British fashion company. The retailer, Roman, said sales of the outfit that sparked #TheDress debate soared 347% ...

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Chicago Credit Rating Cut by Moody's to Two Steps Above Junk

The outlook remains negative, signaling more cuts are possible, New York-based Moody’s said Friday in a report. “The city’s credit quality could weaken as unfunded pension liabilities grow and exert increased pressure on the city’s operating budget,” Moody’s analysts Matthew Butler and Rachel Cortez wrote.



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Icahn's investment fund posts first loss since 2008 on oil plunge

Billionaire activist investor Carl Icahn's publicly traded investment fund posted its first annual loss since 2008 last year, undone by plummeting oil prices, the company said in a regulatory filing on Friday. Results were hurt by a halving of oil prices between June and December amid a global supply glut. "This year's results were obviously disappointing, with the precipitous decline in oil prices impacting the profitability of many of our segments," Icahn said in a statement. The performance of Apple Inc (AAPL.O), the largest position in Icahn's investment segment, "softened the impact of the decline in oil prices and hopefully will continue to do so," Icahn said.

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'House of Cards' a boon for Netflix, Weight Watchers' stock slims down and American Express' turnaround plan

Yahoo Finance's Midday Movers is live each weekday at 12pm ET, covering all the latest news on the markets, the economy and the biggest stories of the day.

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Hamm: My big fat divorce check 'got the job done'

Oil tycoon Harold Hamm tells CNBC his divorce from Sue Ann Arnall is "in the rearview mirror."

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Exclusive: Greece set to get green light for EBRD support

Greece is expected to be given the green light early next week for what could add up to well over a billion euros of cheap aid and funding support from the European Bank for Reconstruction and Development, according to sources at the bank. The former Greek government put in a request late last year to become an EBRD 'country of operation' and make it eligible for the development bank's support, but the process was put on hold during the uncertainty of the country's recent elections. An EBRD spokesman declined to comment but the sources who spoke to Reuters said approval was likely to come on the grounds that Greece would be classed as a "temporary" recipient of EBRD funds until up to around 2020.

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European shares at fresh seven-year high as ECB QE nears

European shares rose to fresh seven-year highs on Friday, extending a two-month rally fueled by the European Central Bank's money printing program which starts in the coming weeks. European shares bucked a softer trend in Asian and U.S. markets as a sharp overnight pullback in crude oil prices dampened risk appetite there. The FTSEurofirst 300 index (.FTEU3) index of top European shares was up 0.3 percent at 1,561.60 points, with strong annual results from Airbus Group (AIR.PA), the world's second-largest aerospace company, spurring the rally. About two-thirds of the way into Europe's earnings season, 55 percent of companies have met or beaten profit forecasts.

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Retail loan investors return as rate rises near

Retail investors are returning to bank loan mutual funds following seven straight months of outflows, with the Federal Reserve more clearly signaling an interest rate hike and higher secondary loan market prices starting to attract momentum buyers, investors and strategists said. Fed Chair Janet Yellen's congressional testimony this week increased confidence that the central bank will raise interest rates this year for the first time since 2006, although Yellen refused to be pigeon-holed on precise timing. Floating rate loans provide a natural hedge against rising interest rates. Retail accounts poured $81 billion into bank loan funds for 95 straight weeks until April 2014, Lipper data shows, before global economic concerns and crashing oil prices held U.S. interest rates low for longer than most economists anticipated.

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Where these confident CFOs are investing

CFO confidence in the US economy spiked this quarter, according to the latest CNBC CFO Council survey. This should trigger corporate spending in IT.

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Standard Chartered staff braced for big change under Winters

Incoming Standard Chartered Chief Executive Bill Winters will need to take tough decisions that predecessor Peter Sands deemed unnecessary, in order to reverse a two-year slump in the bank's fortunes, according to some insiders and bankers. In a major boardroom reshuffle that signaled the end of an era at the Asia-focused bank, Standard Chartered said Thursday that Winters would take over in June, initially prompting a giddy reaction among investors, analysts and some staff.

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U.S. consumer sentiment slides from 11-year peak in February

U.S. consumer sentiment fell from an 11-year high in February, a survey released on Friday showed. The University of Michigan's final February reading on the overall index on consumer sentiment was 95.4, higher than the initial reading of 93.6 and the market forecast for a reading of 94.0.

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U.S. pending home sales hit one-and-a-half-year high in January

Contracts to purchase previously owned U.S. homes rose to their highest level in 1-1/2 years in January, a hopeful sign that the sluggish housing recovery may be gaining speed. The National Association of Realtors said its pending home sales index rose 1.7 percent last month, a gain that more than reversed a December slide.

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Fed's Dudley: Risk of raising rates too soon higher than waiting longer

New York Federal Reserve Bank President William Dudley, a permanent voter on the Fed's policy setting committee, urged caution on the issue of when the central bank should lift rates, which it is expected to do later this year. The former Goldman Sachs economist said he did not agree with the notion that a central bank should follow a simple policy rule, as some conservative economists and lawmakers have argued.

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Fiat Chrysler says recalling about 467,500 SUVs worldwide

Fiat Chrysler Automobiles said on Friday it will recall about 467,500 SUVs globally in order to fix a fuel-pump issue that could cause engine stall. The U.S. arm of FCA says it is not aware of any crashes ...

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Apple faces patent lawsuits from Ericsson

CNBC's Dominic Chu and International Business Times Tech Editor Michael Learmonth discuss the latest patent lawsuit against Apple.

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Greece runs out of funding options despite euro zone reprieve

BRUSSELS/ATHENS (Reuters) - Greece is running out of options to fund itself despite a four-month bailout extension, raising pressure on Athens to quickly implement reforms it has vocally opposed or default on debt repayments in a matter of weeks. Shut out of debt markets and faced with a steep fall in tax revenues, Athens is expected to run out of cash by the middle or end of March. Its finance minister has warned that Greece will struggle to repay creditors starting with a 1.5 billion euro IMF loan repayment due in March. Athens has been looking for quick fixes to tide it through the coming weeks but has not found one yet.

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VW keeps profit outlook, raises sales target after record earnings

Volkswagen stuck to its guidance for operating profit after posting record earnings last year on double-digit gains in sales of luxury Audi and Porsche models. Europe's largest carmaker said on Friday ...

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Warren Buffett: What to watch for in his investor letter

Warren Buffett is about to release his annual letter to investors. There's a lot of stuff to learn from it.

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U.S. fourth-quarter growth rate revised down to 2.2 percent

U.S. economic growth braked more sharply than initially thought in the fourth quarter amid a slow pace of stock accumulation by businesses and a wider trade deficit, but the underlying fundamentals remained solid. Gross domestic product expanded at a 2.2 percent annual pace, revised down from the 2.6 percent pace estimated last month, the Commerce Department said on Friday. With consumer spending accelerating at its quickest pace since the first quarter of 2006 and sturdy gains in other measures of domestic demand, the slowdown in growth is likely to be temporary. Growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, was revised down by one-tenth of a percentage point to a 4.2 percent pace in the fourth quarter, still the fastest since the first quarter of 2006.

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Confident Airbus juggles jet output and pays record dividend

Airbus Group (AIR.PA) defied warnings of a slowdown in the jetliner market with a steep production boost for its top-selling A320 and announced its biggest ever dividend. The world's second-largest aerospace group after Boeing (BA.N) said it would increase production of the A320 jet family to a record 50 a month in early 2017. "Airbus has bitten the bullet on the A330," said Edison Investment Research analyst Sash Tusa, adding that the move was widely expected. Airbus Group Chief Executive Tom Enders dismissed recent market concerns that the commercial aerospace cycle has peaked.

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Global investors lift exposure to stocks as major markets touch record highs

Global investors increased their bets on stocks during February as major equity markets broke through all-time highs, fuelled by the promise of more monetary stimulus, Reuters' monthly asset allocation poll showed. As around 20 central banks have cut interest rates since the start of 2015, and with the European Central Bank set to launch quantitative easing next month, investors expect loose monetary policy to stir growth and boost corporate earnings. The monthly asset allocation poll, covering 47 fund managers and chief investment officers in the United States, Europe and Japan, found that the average recommended exposure to stocks in global balanced portfolios rose to 50.7 percent, the highest level since last September, from 49.5 percent a month earlier. The increased exposure to stocks came largely at the expense of alternative investments, a category that includes commodities, private equity and hedge funds.



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U.S. fourth-quarter growth rate revised down to 2.2 percent

U.S. economic growth braked more sharply than initially thought in the fourth quarter amid a slow pace of stock accumulation by businesses and a wider trade deficit, but the underlying fundamentals remained solid. Gross domestic product expanded at a 2.2 percent annual pace, revised down from the 2.6 percent pace estimated last month, the Commerce Department said on Friday. With consumer spending accelerating at its quickest pace since the first quarter of 2006 and sturdy gains in other measures of domestic demand, the slowdown in growth is likely to be temporary. Growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, was revised down by one-tenth of a percentage point to a 4.2 percent pace in the fourth quarter, still the fastest since the first quarter of 2006.

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