Newsweek going all-digital
Newsweek will end its print publication after 80 years and shift to an all-digital format. Its last U.S. print edition will be its Dec. 31 issue. The paper version of Newsweek is the latest casualty of a changing world where readers get more of their information online -- and instantly. The announcement of the change was made Thursday by Tina Brown, editor-in-chief and founder of The Newsweek Daily Beast Co. Job cuts are expected. "We have reached a tipping point at which we can most efficiently and effectively reach our readers in all-digital format," Brown said on The Daily Beast website. Newsweek isn't the first to drop its print product. US News & World Report dropped its print edition years ago. SmartMoney announced in June that it was going all-digital.
Profit up at Morgan Stanley
Morgan Stanley reported higher revenue and net income for its third quarter Thursday thanks to gains in its bonds and asset management businesses. Excluding an accounting charge, the bank earned $535 million for common shareholders in July to September, up from $39 million a year ago. Revenue rose 18 percent to $7.6 billion after excluding the charge. That beat the $6.4 billion that analysts were expecting, according to FactSet. If the accounting charge is included, the bank lost $1 billion in the quarter versus income of $2.2 billion in the same period a year ago, and revenue fell 46 percent to $5.3 billion. The charge was related to a controversial accounting rule that governs how banks value their debt.
Economy index shows gain
A measure of U.S. economic activity designed to give signals about the future posted a solid gain in September, rebounding after a dip in August. The index still signals weak growth, however. The Conference Board said on Thursday that its index of leading indicators rose 0.6 percent in September after falling 0.4 percent in August and rising 0.4 percent in July. The strength in September came from a big jump in applications for building permits, which the government reported Wednesday had climbed to a four-year high. Other areas of strength came from low interest rates and rising stock prices. Six of the 10 indicators showed strength. The major areas of weakness came from a decline in the Institute for Supply Management's new orders index and in consumer confidence.
Sprint hiking Clearwire stake
Flush with the promise of cash from a Japanese investor, Sprint Nextel Corp. Thursday said it's buying out the founder of Clearwire Corp. to gain majority control of the wireless network operator. Sprint said in a regulatory filing that it will pay wireless pioneer Craig McCaw and his holding company $100 million for 5 percent of Clearwire, pushing Sprint's voting stake in the company to 53 percent. Clearwire has the right to use a large chunk of the nation's airwaves but lacks the money to renovate and expand its network. Sprint hadn't been in a position to invest in Clearwire, but that changed with Monday's news that Japanese cellphone company Softbank Corp. will buy 70 percent of Sprint for $20.1 billion.
Sign of rebound in China
China's worst slump since the global financial crisis leveled out in the latest quarter, and retail sales picked up in a sign an economic rebound is taking shape, adding to hopes for a global recovery. The world's second-largest economy grew 7.4 percent from the year before in the three months ending in September. That was slower than the second quarter's 7.6 percent growth, but the decline was much gentler than in earlier quarters. Economists also pointed to quarter-on-quarter growth of 2.2 percent, the biggest such gain in a year, as a sign of recovery.