On Thursday March 17, 2011, 6:16 pm EDT
Dealers raise some car
prices after Japan crisis
DETROIT (AP) -- The
disaster in Japan could slow shipments of popular cars like Toyota's Prius to
auto lots. And many dealers are already taking advantage of expected shortages
to raise prices.
Buyers will now typically
have to pay sticker prices, instead of enjoying discounts that had been the
norm for small cars and hybrids imported from Japan. Besides the Prius, models
that suddenly cost more include Honda's Insight, Fit and CR-V; Toyota's Yaris;
and several Acuras and Infinitis.
Dealers are acting on the
possibility that disruptions in car deliveries from Japan will cause a shortage
of higher-demand vehicles. Demand will exceed supply.
Diet Coke passes Pepsi to
become No. 2 soda in US
Diet Coke has topped rival
Pepsi-Cola for the first time to become the second-most popular soft drink in
the country behind Coca-Cola. It marks a victory for Coca-Cola Co. as its sodas
now hold the top two spots, beating out its longtime rival PepsiCo Inc.
Diet Coke's rise reflects a
long-term trend toward diet sodas. Ten years ago, only two of the top 10 were
diet sodas. Now, four are on the list: the diet versions of Coke, Pepsi,
Mountain Dew and Dr Pepper.
Coca-Cola sold nearly 927
million cases of its diet soda in 2010, to Pepsi's 892 million, a report by
trade publication Beverage Digest released Thursday said.
Regular Coke remains far
and away the most popular soda, selling 1.6 billion cases.
Stronger economic reports
help stocks rebound
NEW YORK (AP) -- Signs that
the U.S. economy is improving helped investors put aside fears over Japan's
nuclear crisis Thursday, if only temporarily.
A gauge of manufacturing in
the mid-Atlantic region jumped in February to the highest point since January
1984. The survey from the Federal Reserve's Philadelphia branch showed new
orders soared. Production at U.S. factories, mines and utilities dipped last
month but was actually higher in previous months than first estimated, according
to the Federal Reserve.
The Labor Department
reported that the number of people applying for unemployment benefits fell more
than economists expected last week. Ongoing claims dropped to the lowest level
since October 2008.
Strong economic data points
to more hiring
WASHINGTON (AP) --
Factories are producing more cars, computers and household appliances, and
applications for unemployment benefits over the past four weeks are at the
lowest point since summer 2008.
Economic data released
Thursday suggest that March will be the second straight month of strong job
growth. And the reports helped Wall Street rebound a day after the market
suffered its biggest drop in seven months.
Still, rising prices for
household necessities and trouble overseas could slow the U.S. economy in the
coming months.
Bungling, cover-ups define
Japanese nuclear power
TOKYO (AP) -- Behind
Japan's escalating nuclear crisis sits a scandal-ridden energy industry in a
comfy relationship with government regulators often willing to overlook safety
lapses.
Leaks of radioactive steam
and workers contaminated with radiation are just part of the disturbing catalog
of accidents that have occurred over the years and been belatedly reported to
the public, if at all.
In one case, workers
hand-mixed uranium in stainless steel buckets, instead of processing by
machine, so the fuel could be reused, exposing hundreds of workers to
radiation. Two later died.
Japan crisis weighing on US
dollar against yen
WASHINGTON (AP) -- The
crisis in Japan has pushed the U.S. dollar to its lowest levels since World War
II, a trend that could give American exporters an advantage and help strengthen
the U.S. economy.
Investors are selling off
their dollars and buying yen on the expectation of a major rebuilding effort in
Japan. A weaker dollar makes U.S. exports cheaper overseas. But it also could
fuel inflation at a time when prices for food and oil are already creeping up.
The dollar had fallen
Wednesday to the point where it took only 76.32 yen to buy $1 -- the lowest level
since the mid-1940s. It rose to trade at 78.97 yen Thursday afternoon.
The dollar's value against
the yen has been sliding for months. But the trend accelerated following last
week's devastating earthquake, tsunami and resulting nuclear crisis.
FDIC sues 3 former top
executives of failed WaMu
WASHINGTON (AP) -- Federal
bank regulators have sued three former top executives of Washington Mutual, the
biggest U.S. bank ever to fail, accusing them of negligence in allowing risky
mortgage lending and seeking $900 million in damages.
The Federal Deposit
Insurance Corp. filed the civil lawsuit Wednesday against former WaMu CEO Kerry
Killinger, ex-Chief Operating Officer Stephen Rotella and David Schneider, who
headed the bank's home loans division. The FDIC also named Killinger's and
Rotella's wives in the suit filed in federal court in Seattle.
The FDIC said the three
executives pushed for expansion of WaMu's risky lending even though they knew
or should have known that its loan standards and controls were inadequate. The
bank collapsed in September 2008 and was sold for $1.9 billion to JPMorgan
Chase & Co. in a deal brokered by the FDIC.
Fed to soon give green
light on bank dividends
WASHINGTON (AP) -- The
Federal Reserve plans to tell some major banks on Friday whether they are
healthy enough to boost stock dividends.
Banks can increase
dividends if they pass "stress tests" showing that they can weather
another recession.
All of the 19 largest banks
overseen by the Fed were subject to the examinations -- even if they didn't
intend to increase their dividend payments. Those banks include Citigroup, Bank
of America, JPMorgan Chase & Co. and Wells Fargo.
The Fed's first stress
tests were conducted in 2009 when the country was reeling from a severe
recession and financial crisis. Those results were made public in a move to
boost confidence in the fragile U.S. banking system.
Some airlines put Japan
expansion on hold
Even as airlines added
extra flights to get people out of Tokyo, their long-term plans for expansion
there have been thrown into doubt.
Delta Air Lines Inc. said
on Thursday that it will suspend new flights to Tokyo's Haneda airport
beginning next week. Singapore Airlines had planned to put the massive Airbus
A380 on a flight from Singapore to Tokyo to Los Angeles later this month. But
that flight will continue to be served by a Boeing 747 until further notice.
United Continental Holdings
Inc., the biggest U.S. carrier to Asia, isn't cutting flights but is monitoring
the situation. Both United and Delta use Tokyo's Narita airport as a hub for
flights further into Asia.
FedEx gives positive 4Q
outlook, shares jump
NEW YORK (AP) -- FedEx
Corp. says slow-but-steady economic growth should produce strong earnings for
the current quarter, although fuel prices and Mideast turmoil remain big
uncertainties.
The world's second-largest
package delivery company was upbeat about the fourth quarter and year ending in
May, saying revenue should continue to improve and its freight unit should return
to profitability after 6 money-losing quarters. Shares rose 3 percent.
FedEx issued the outlook on
Thursday as it reported that third-quarter earnings fell 3 percent. Rising fuel
prices and harsh winter weather offset a double-digit rise in revenue.
New York Times to start
charging for website
NEW YORK (AP) -- The New
York Times says it will start charging for access to its website and for the
use of smart phone and tablet applications later this month in the U.S.
Beginning March 28, prices
start at $15 for four weeks of full access to the website and the smart phone
app.
Subscribers to the printed
edition will keep free access to the website and apps. Others will be able to
view 20 articles a month for free on the website and see the "Top
News" section in the apps.
Newspapers are trying to
increase digital revenue as online ad revenue, while growing, hasn't fully
offset the declines in print.
Oil prices settle above
$101 per barrel again
NEW YORK (AP) -- Oil prices
soared more than 3.5 percent, climbing back above $101 per barrel Thursday
after a crackdown on protesters in Bahrain and the U.S. stepped up pressure for
U.N. action against Libya's Moammar Gadhafi.
Prices also rose on the
expectation that Japan will boost fuel imports as its refineries and factories
recover from the earthquake and tsunami disaster. And the world's largest oil
consumer, the U.S., reported that unemployment claims dropped to the lowest
level since July 2008, raising hopes that oil and gasoline demand will soon
increase.
Oil prices have been pushed
and pulled in recent weeks by international crises that could have major
impacts on world oil supplies and demand.
By The Associated Press
The Dow gained 161.29
points, or 1.4 percent, to 11,774.59. The index fell 242 points Wednesday, its
largest drop since August.
The Standard & Poor's
500 rose 16.84, or 1.3 percent, to 1,273.72. With Thursday's gains, the Dow and
S&P 500 are up more than 1 percent for the year.
The Nasdaq rose 19.23, or
0.7 percent, to 2,636.05. The technology-heavy index is down 0.6 percent for
the year.
Benchmark crude added $3.44
to settle at $101.42 per barrel on the New York Mercantile Exchange. In London,
Brent crude rose $4.21, nearly 4 percent, to settle at $114.65 per barrel on
the ICE Futures exchange.
In other Nymex trading for
April contracts, heating oil gained 6.77 cents to settle at $3.0649 per gallon
and gasoline futures added 10.69 cents to settle at $2.9506 per gallon. Natural
gas rose 22 cents to settle at $4.158 per 1,000 cubic feet. In its weekly
report, the Energy Department said the nation's natural gas supplies shrank by
56 billion cubic feet. Supplies are about 1.4 percent above the five-year
average.