IKEA will invest as much as €3 billion on new shopping center development in the next several years, looking to capitalize on the demand from retailers to set up shop near the furniture giant's massive stores. The Sweden-based retailer operates 318 stores around the globe, which drew 716 million shoppers last year.
Accounting rules that constrained loss provisions played a role in the failure of about 400 community banks during the financial crisis, according to a report by the Government Accountability Office. Generally accepted accounting principles required banks to limit loan-loss reserves according to historical loss rates, and this intensified the problem.
Caterpillar's global sales of heavy equipment decreased 13% in the three months through February. The company cites weakness in Asian-Pacific sales and says 2013 profit could decline unless the global economy picks up. Customers are more inclined to rent heavy machinery than purchase it during uncertain times, says Lawrence De Maria, an analyst at William Blair.
The Cape Wind offshore wind project in Massachusetts' Nantucket Sound has chosen Bank of Tokyo-Mitsubishi UFJ as the lead commercial bank for the project's debt financing. Ted Roosevelt IV, managing director of Barclays, which acts as financial adviser to the project, said the deal with the Japanese bank was a "significant step toward achieving financial close." Cape Wind expects to finalize the financing for the 468-megawatt offshore wind project and begin construction by the end of the year.
The House Agriculture Committee might push through a bill that would make it easier for banks to trade swaps overseas. It is one of seven measures the panel is expected to take up today. The legislation is aimed at curtailing the Dodd-Frank Act.