European stocks --- Suzy (fast)
>> european stocks are off across the board. the ft-se and the cac and dax off as well. the reason is german business confidence held at a 15-year high. it actually fell in may, but from 105.6 to 105.9. economists expected a bigger drop. because of that, investors are worried about interest rate increases and an interview we had with e.t.v. council member yesterday in athen who is said that economic growth in the euro zone may exceed the bank’s forecast this year indicating that he sees the need to raise interest rates. we see the biggest insurer in europe off by half a percent and deutsche bank down by 1.33 in frankfurt. adding to losses is near royal prices are slipping off as well. that is leading investors to sell shares in europe’s biggest oil producers. you see b.p. off about 2%. these are heavily-weighted shares as well. royal ahold t dutch owner of the stop and shop and giant supermarket said first quarter sales of the u.s. food chains declined off intensifying competition. revenue dropped almost 1% to $5 billion and sales at giant stores fell 5.6% to $1.8 billion. the chief executive said last week that rivals were becoming more aggressive and ahold is reviewing unprofitable markets . tesco is the u.k.’s largest supermarket owner extending the lead over wal-mart’s u.k. stores in nonfood retailing. that according to verdict research. tesco is the country’s second most used retailer for hair spray and deodorants and ranks third in home ware, music video markets in case you were wondering. wal-mart’s u.k. chain failed to improve in any nonfood area in the past year. tesco has broadened the range beyond food for everything from appliances to horse riding gear. if you need any of that on the next trip to london, you can pick it up at tesco.
>> thank you very much. in the meantime, we give you a little bit more of our exclusive interview with former nyse chairman dick grasso. we’re going to get his views on the expanding investigation into executive stock option grants and what does he think about the nyse’s bid for euronext?
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Listen Focus: Former New York Stock Exchange
>> some headlines crossing regarding general electric. jeff immelt is making comments at an investor confidence in florida and among what he is saying is that g.e.’s health care signs an exclusive distribution pact for discoverex and that he is repeating that 2006 forecast and sees $163 billion in the 2006 revenues from continuing operations. he says the businesses are experiencing tail winds. the share this is morning are down about 12 cents at this hour. in the meantime, we have two of the our top stories today that are the battle for euronext and the practice of executives receiving back dated stock options. our own allan dodds frank talked to former new york stock exchange chairman richard grasso about these big story. what did he say?
>> dick grasso is no stranger to controversy about executive compensation. we met outside a new york law office where he is attending a deposition in the case elliot spitzer has brought against him. i asked grasso about executives receiving stock options that apparently have been back dated to coincide with the lowest trading price of the year.
>> it is very, very troubling when you hear of a practice that someone back dates the option totally inconsistent with the philosophy of aligning management interests with the interest of the shareholders. it’s bad to have it in just one instance. it’s bad for corporate america and it has to be rooted out.
>> grasso heartily endorses the bid for euronext and foresees a dwhrowglow boll consolidation of
