By JOHN KAPETANEAS
Morning Money Memo…
Google has settled a three-year anti-trust probe with the European Union this morning, after committing to provide increased visibility of rival services alongside its own specialized search services. “I believe that the new proposal obtained from Google after long and difficult talks can now address the commission’s concerns,” Commission Vice President of Competition Joaquín Almunia said in a statement.
With the settlement, Google will avoid a fine of up to $5 billion and further investigation. In a statement, Google General Counsel Kent Walker said, “We have been working with the European Commission to address issues they raised and look forward to resolving this matter.”
Stocks rebounded slightly on Tuesday after Monday’s massive sell-off, the largest in the last seven months. The Dow, S&P and Nasdaq finished up 0.5 percent, 0.8 percent, and 0.9 percent, respectively. Most European markets are positive today, while Asian markets have been mixed.. US futures are holding slightly negative this morning.
A second winter storm this morning is hampering both domestic and international flights across the country. FlightAware has reported that 2,195 flights within, in to or out of the US have been canceled today. Another 2,347 have been delayed.
The Affordable Care Act is expected to cut working hours for Americans by over 2 million full time jobs by 2021, according to a report by the Congressional Budget Office. The reduction could be credited to low wage employees seeking to forgo extra work to avoid losing benefits provided under the law. Congressman John Kline, R-Minn, said in a statement that the report “is further evidence the president’s health care law is destroying full-time jobs.”
JP Morgan Chase will pay $614 million to the US to settle fraudulent mortgage lending claims brought by the Federal Housing Administration and the Department of Veterans Affairs. Manhattan US attorney Preet Bharara said in a statement that the company puts “profits ahead of responsibility” and underwrote bad loans to the agencies. “With today’s settlement, however, JP Morgan Chase has accepted responsibility for it’s misconduct and has committed to reform its business practices,” Bharara said.
Companies reporting earnings today: Baidu, Coca-Cola, GlaxoSmithKline, Green Mountain, Humana, Merck, Nasdaq OMX, Prudential Financial, Ralph Lauren, Time Warner, Twitter, and Walt Disney Co.