NEW YORK (AP) -- In a sign the financial crisis isn't over, CIT
Group Inc., the No. 1 lender to small and mid-sized U.S. businesses, is
scrambling to get help from the federal government.
The ailing company's stock fell toward $1 Monday as investors
fearing a bankruptcy court filing unloaded the shares. A collapse of CIT, whose
1 million clients include big names from the franchisee of Dunkin' Donuts to
retailer Dillard's Inc., could deal a devastating blow to the economy by
cutting off financing just as businesses need it most, analysts warned.
That in turn could force thousands of small and medium-sized
companies to drastically cut costs or shut down -- driving up unemployment and
dashing hopes for a swift economic recovery.
Judge OKs shift of some Delphi assets to new GM
NEW YORK (AP) -- A bankruptcy judge on Monday approved a deal
that could shift some of auto parts supplier Delphi's assets to General Motors
Co., which emerged from Chapter 11 bankruptcy protection last week.
U.S. Judge Robert Gerber, who is overseeing the liquidation of
Motors Liquidation Co., the collection of assets and liabilities left over
after the sale of prized GM assets to a new company, gave his approval to the
deal, allowing GM and an affiliate of Platinum Equity to buy the bulk of
Delphi's assets and help the auto supplier emerge from bankruptcy protection.
All of the assets and costs related to the agreement will
transfer to the new GM and not affect the finances of "Old GM" or the
possible returns for the old company's creditors, GM attorney Robert Lemons
told the court.
Financials pull stocks higher ahead of earnings
NEW YORK (AP) -- A few kind words about Goldman Sachs sent
financial shares soaring and yanked the entire stock market out of a slumber.
Rising bank stocks propelled indexes to their biggest one-day
gain in six weeks Monday after influential banking analyst Meredith Whitney
raised her rating on Goldman Sachs Group Inc. The bank reports earnings on
Tuesday. Whitney said also on CNBC that hard-hit Bank of America Corp. looks
inexpensive given the assets on its books.
Her upbeat, albeit still cautious, tone on banks helped lift the
Dow Jones industrial average 185 points to 8,331.68 in relatively thin trading
volume.
Fla. judge delays hearings in UBS secrecy case
MIAMI (AP) -- Negotiations aimed at settling the Internal Revenue
Service's tax evasion lawsuit against Swiss bank UBS AG gained traction Monday
when a federal judge agreed to postpone the case until early August or possibly
longer.
The judge acted after a motion seeking delay was filed Sunday by
the Swiss and U.S. governments and the bank, one of the largest in Europe.
UBS attorney Eugene Stearns said discussions are taking place at
high levels between the two governments, which are at odds over the Swiss claim
that its centuries-old bank secrecy laws prevent UBS from disclosing to the IRS
the identities of some 52,000 suspected wealthy American tax dodgers.
Budget deficit tops $1 trillion for first time
WASHINGTON (AP) -- Nine months into the fiscal year, the federal
deficit has topped $1 trillion for the first time.
The imbalance is intensifying fears about higher interest rates
and inflation, and already pressuring the value of the dollar. There's also
concern about trying to reverse the deficit -- by reducing government spending
or raising taxes -- in the midst of a harsh recession.
The Treasury Department said Monday that the deficit in June
totaled $94.3 billion, pushing the total since the budget year started in
October to nearly $1.1 trillion.
RHJ says Opel talks at advanced stage
BERLIN (AP) -- Investor RHJ International SA said Monday it is in
advanced negotiations with General Motors Corp. on possibly taking a majority
stake in the U.S. auto maker's European Opel unit.
The company did not specify how big a stake it aims to take or
what the talks are focused on. The announcement came even as Canadian auto
parts maker Magna International Inc. and Russia's Sberbank continue their own
talks with GM to rescue Opel.
German officials have stressed that a deal earlier this year for
Magna and Sberbank to move ahead with a takeover of Opel is preliminary and
have said that until a final agreement is nailed down other potential suitors
remain in play -- including China's Beijing Automotive Industry Corp.
Oil settles below $60 a barrel on demand worries
NEW YORK (AP) -- Oil prices stayed below $60 a barrel Monday with
concerns the global economy isn't improving quickly and demand will remain
soft.
Benchmark crude for August delivery fell 20 cents to settle at
$59.69 a barrel on the New York Mercantile Exchange. Prices dipped as low as
$59.30 earlier in the session.
Oil prices have fallen by about $14 a barrel, or 19 percent,
since June 30 after poor employment data from the U.S. and Europe raised doubts
that the global economy was poised for a strong recovery this year.
Office 2010 test opens; free Web versions later
SEATTLE (AP) -- Microsoft Corp. is giving a select group of
technology-savvy testers an early peek at its Office 2010 software, but it's
keeping a key development -- free Web-based versions of programs such as Word
and Excel -- under wraps a little while longer.
Monday's launch of this "technical preview" indicates
Office 2010 is still on track for release in the early part of next year.
Microsoft is updating the highly profitable desktop software
package to add more ways for people to work simultaneously on documents,
organize their e-mail and edit videos and photos, among other changes. And for
the first time, Microsoft is adding free companion versions that run in a Web
browser.
Japan's top 2 beverage makers considering merger
TOKYO (AP) -- Japan's top two beverage makers, Kirin and Suntory,
are considering merging their operations, a Suntory spokesman said Monday.
A merger would create the world's fifth largest food company by
sales, just behind Kraft Foods Inc. and Pepsico Inc., the Nikkei business
newspaper reported.
It also would help the companies overcome a saturated domestic
market with an aging population and compete more strongly with large international
brands.
CSX 2Q profit falls 20 percent as shipments drop
NEW YORK (AP) -- Railroad operator CSX says its second-quarter
earnings fell 20 percent as it collected fewer fuel surcharges and shipments
continued to fall.
But the results still topped Wall Street's expectations, as the
company slashed expenses by 27 percent.
The Jacksonville, Fla.-based company said Monday it earned $308
million, or 78 cents per share, compared with $385 million, or 93 cents a
share, last year.
Excluding charges related to the money-losing Greenbrier resort
the company sold, earnings from continuing operations were 72 cents per share
versus 95 cents per share last year. Revenue fell 25 percent to $2.19 billion.
By The Associated Press
The Dow rose 185.16, or 2.3 percent, to 8,331.68.
The Standard & Poor's 500 index jumped 21.92, or 2.5 percent,
to 901.05, while the Nasdaq composite index rose 37.18, or 2.1 percent, to
1,793.21.
Benchmark crude for August delivery fell 20 cents to settle at
$59.69 a barrel on the New York Mercantile Exchange.
In other Nymex trading, gasoline for August delivery fell 1.1
cent to settle at $1.6394 a gallon and heating oil dropped about 3 cents to
settle at $1.5038. Natural gas for August delivery slid 11 cents to settle at
$3.263 per 1,000 cubic feet, though it hit a 52-week low of $3.225 earlier in
the session.
In London, Brent prices rose 17 cents to settle at $60.69 a
barrel on the ICE Futures exchange.