Once the world's largest and most powerful automaker, new GM is
now leaner, cleansed of massive debt and burdensome contracts that would have
sunk it without federal loans. But GM, whose 40 days under court supervision was far shorter
than anyone predicted, faces the worst auto sales slump in a quarter-century. May trade deficit unexpectedly drops to $26B WASHINGTON (AP) -- The U.S. trade deficit fell to the lowest
level in more than nine years in May as exports posted a small gain while the
weak American economy pushed imports down for a 10th straight month. The slight rebound in exports, combined with a slower pace of
decline in imports, showed that the nosedive in global activity may be starting
to ebb. Delayed revivals overseas likely will hinder a rebound in the U.S., but
most analysts still expect the American economy to grow a bit later this year. The Commerce Department said Friday the deficit narrowed to $26
billion, a drop of 9.8 percent from April and the lowest level since November
1999. Economists expected the deficit to widen to $30.2 billion in May. Stocks post 4th straight week of losses NEW YORK (AP) -- With little upbeat news ahead of a crush of
corporate earnings reports next week, stocks on Friday hit their longest losing
streak since the market's spring rally began in early March. Unrelenting worries over the economy, driven by poor reports on
unemployment, consumer confidence and falling commodity prices, have kept
investors largely out of stocks since mid-June. The Dow fell 36.65, or 0.5 percent, to 8,146.52. It was the
lowest close for the blue chips since April 28. G-8 is not enough: Calls for larger, recast group L'AQUILA, Italy (AP) -- For all the smiles and upbeat talk, the
just-ended Group of Eight summit showed how unwieldy the forum has become, run
by Cold War-vintage powers while relegating the world's fastest growing
economies -- China, India and Brazil -- to observers. It also showed just how sharp the divisions are between old-world
and new-world viewpoints. The meeting fell short of expectations on many counts, from
climate control to trade. The global economic crisis weighed heavily on
everyone and complicated efforts to find consensus, resulting in avoiding or
putting off some major decisions. Members appeared divided on how soon to roll
back stimulus packages, although they agreed now was not the time to start. Geithner: Stimulus is working and on right path WASHINGTON (AP) -- Despite persistently high unemployment,
Treasury Secretary Timothy Geithner said Friday the Obama administration's
economic stimulus plan is on the "expected path." Geithner's remarks came amid waning public support for President
Barack Obama's economic policies. Republican critics say the rising unemployment
rate is proof that the $787 billion stimulus has not helped reverse the effects
of the recession. About 2 million jobs have been lost since Congress passed Obama's
stimulus package in February. Unemployment now stands at 9.5 percent, the
highest in 26 years. Some Obama allies have been calling for Congress to pass a
second stimulus package. Panel: Banks underpaying gov't to exit bailout WASHINGTON (AP) -- The Treasury Department is selling its
financial stakes in bailed-out banks for one-third less than they're worth,
potentially shorting taxpayers up to $2.7 billion, a bipartisan congressional
watchdog says. The estimated shortfall concerns warrants, financial instruments
that allow Treasury to buy shares of the firms at a set price in 10 years. If
the stock prices of the banks go up, as they are expected to do, taxpayers
could reap a healthy profit. Treasury obtained the warrants when it began injecting billions
into the nation's largest financial institutions in October. They were
considered a "deal-sweetener" -- a way to help taxpayers benefit from
the upside of a financial recovery that depended on billions of federal
dollars. Oil below $60 as earnings season opens NEW YORK (AP) -- Oil prices sank below $60 a barrel Friday,
ending a week in which crude has fallen more than 10 percent on growing
pessimism about the economy and also the well-being of companies about to
report second-quarter earnings. Benchmark crude for August delivery fell 52 cents to settle at
$59.89 a barrel on the New York Mercantile Exchange, but at one pointed traded
as low as $58.72. The International Energy Agency said Friday it expects energy
demand to drop 2.9 percent this year. AP Source: AIG consults administration on bonuses NEW YORK (AP) -- American International Group Inc. is consulting
with the federal government about its plans to pay millions of dollars in
retention incentives and bonuses, a person familiar with the situation said. AIG is working with the Obama administration's compensation czar,
Kenneth R. Feinberg, to ensure the government and the insurer are on the same
page before it pays out remaining bonuses due to employees tied to 2008
contracts, according to the person, who requested anonymity because of the
sensitive nature of the talks. New York-based AIG faced intense public and Congressional
criticism in March when it paid out hundreds of millions of dollars in
retention bonuses to employees months after receiving a bailout from the
government. China accuses Rio workers of stealing price data BEIJING (AP) -- Four detained Rio Tinto Ltd. employees are
accused of paying bribes for secret information about China's stance in iron
ore price talks, state media said Friday in a case that highlights the volatile
Chinese mix of business and politics. The four employees, including an Australian, were detained Sunday
as Rio, the world's third-largest mining company, negotiated on behalf of
global iron ore suppliers with Chinese steel mills. The government says it has
proof they stole state secrets. Panel: Banks underpaying gov't to exit bailout WASHINGTON (AP) -- The Treasury Department is selling its
financial stakes in bailed-out banks for one-third less than they're worth,
potentially shorting taxpayers up to $2.7 billion, a bipartisan congressional
watchdog says. The estimated shortfall concerns warrants, financial instruments
that allow Treasury to buy shares of the firms at a set price in 10 years. If
the stock prices of the banks go up, as they are expected to do, taxpayers
could reap a healthy profit. Treasury obtained the warrants when it began injecting billions
into the nation's largest financial institutions in October. They were
considered a "deal-sweetener" -- a way to help taxpayers benefit from
the upside of a financial recovery that depended on billions of federal
dollars. By The Associated Press The Dow fell 36.65, or 0.5 percent, to 8,146.52. The broader S&P 500 index lost 3.55, or 0.4 percent, to
879.13, while the Nasdaq composite index rose 3.48, or 0.2 percent, to
1,756.03. In other trading, the Russell 2000 index of smaller companies
rose 1.71, or 0.4 percent, to 480.98. Benchmark crude for August delivery fell 52 cents to settle at
$59.89 a barrel on the New York Mercantile Exchange. In other Nymex trading, gasoline for August delivery fell about a
penny to settle at $1.6505 a gallon and heating oil for August delivery fell
less than a penny to settle at $1.5335. Natural gas for August delivery slipped
3.5 cents to settle at $3.373 per 1,000 cubic feet. In London, Brent prices fell 58 cents to settle at $60.52 a
barrel on the ICE Futures exchange. Top
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