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Morning Market Roundup: Fannie Doesn't Need Aid, Toyota's Recovery, Greek Deadlock


Here’s what’s important in the business world this morning:

Fannie Mae: U.S. mortgage giant Fannie Mae says it made money in the first three months of the year and is not seeking additional federal aid. It's the first time the company has reported a net income gain since it was taken over by the government during the financial crisis.

Fannie reports net income attributable to common stockholders of $2.7 billion in the January-March quarter. That compares with a net loss of $6.5 billion in the first quarter of 2011.

The company says the improvement was due to slower home price declines, reduced inventory of single-family homes and fewer mortgages in serious delinquency.

Greece: Greece's coalition talks remained deadlocked Wednesday, with conservative leader Antonis Samaras denouncing calls by the head of the radical left party to reject the country's international bailout.

Alexis Tsipras, whose Radical Left Coalition came a surprise second in Sunday's election, has been tasked with seeking partners for a governing coalition after Greeks deserted the two main parties in droves, angry at the pain that harsh austerity cuts have brought.

Tsipras is to meet both with Samaras - who heads the conservative New Democracy party that placed first with 18.9 percent and 108 seats in the 300-member parliament, and the socialist PASOK leader later Wednesday, as well as other party leaders.

Samaras himself failed to hammer out a coalition on Monday. If Tsipras also fails, the job will move on to former finance minister and PASOK head Evangelos Venizelos.

If no deal can be reached in the next few days, new elections will have to be called in the next month. The political uncertainty is causing consternation among Greece's international creditors, who say the country must stick to the cost-cutting terms of its multibillion bailout.

Toyota: Toyota's quarterly profit more than quadrupled to 121 billion yen ($1.5 billion), and the automaker gave upbeat forecasts as it recovers from a sales plunge caused by the tsunami in Japan last year.

Japan's No. 1 automaker forecast Wednesday that profit for its business year ending March 2013 would soar to 760 billion yen ($9.5 billion). Net profit plunged 30 percent to 283.6 billion yen ($3.5 billion) for the just ended business year.

The annual results were better than the company projection for a 200 billion yen ($2.5 billion) profit, as well as the FactSet estimate at 279 billion yen ($3.49 billion). That, along with the jump in profit for the January-March quarter, is a sign of a turnaround from last year's tsunami that hobbled Toyota production around the world.

Stock Futures: U.S. stock futures fell again Wednesday with the economic crisis in Europe overshadowing any sign of modest growth in the U.S.

The Dow Jones industrial average slid 95 points to 12,772. The Standard & Poor's 500 fell 12.5 points to 1,346. The Nasdaq composite index fell 20.75 points to 2,602.

A commodity sell-off continued on expectations that the supply of energy, copper or other goods that fuel healthy economies will be plentiful, given the doubtful prospects for global economic growth in the near future.

Going for around $110 per barrel earlier this year, benchmark crude fell below $100 last week and has been heading downward since. The price hit $96.40 early Wednesday. Copper is falling again, as well.

The Associated Press contributed to this report.

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