WASHINGTON (AP) -- U.S.
consumer prices were flat in July as energy costs retreated following a big
surge in June. Over the past 12 months, prices dropped the most in nearly six
decades as the recession and lower energy costs kept a lid on inflation. The Labor Department said
Friday that consumer prices showed no changed in July, in line with analysts'
expectations and far below the 0.7 percent jump in June. Prices fell 2.1 percent over
the past 12 months, the biggest annual decline since a similar drop in the
period ending in January 1950. Most of the past year's decline reflects energy
prices falling 28.1 percent since peaking in July 2008. Industrial production up for
1st time in 9 months WASHINGTON (AP) --
Production from the nation's factories, mines and utilities rose more than
expected in July, with the first gain in nine months driven by increased output
from auto companies. The increase provides more
evidence that the worst recession since World War II is easing. It marks only
the second gain in industrial production since the downturn began in December
2007. The Federal Reserve said
Friday that production rose 0.5 percent in July, after falling 0.4 percent in
June. Economists expected a 0.3 percent increase, according to Thomson Reuters. Stocks drop as investors
worry about consumers NEW YORK (AP) -- The fear on
Wall Street is that nervous consumers are going to short-circuit the economic
recovery. Stocks fell sharply Friday,
taking the major indexes down about 1 percent, after investors were
disappointed by reports that the Reuters/University of Michigan index of
consumer sentiment fell significantly short of expectations for the first part
of August. That's a sign consumers may well keep cutting back their spending as
they worry about losing their jobs. Consumer spending is crucial for the
economy to emerge from recession as it accounts for two-thirds of all U.S.
economic activity. The Dow Jones industrial
average fell 76.79, or 0.8 percent, to 9,321.40 after falling as much as 165
points after the consumer sentiment survey was released. US official: parts of
regulatory plan won't fly WASHINGTON (AP) -- Federal
Deposit Insurance Corp. Chairman Sheila Bair is pushing back against key
pillars of the Obama administration's financial overhaul plan, saying they
wouldn't survive in Congress and calling her own alternatives more viable. In an interview with The
Associated Press, Bair said Congress won't approve two major parts of the
package: Expanding the Federal Reserve's authority to regulate the largest
financial companies and giving a proposed new consumer protection agency
examination and enforcement powers over banks. Such authority now belongs
to her agency and other bank regulators. Penney posts small 2Q loss,
raises profit outlook NEW YORK (AP) -- Cutting
inventory and other costs helped J.C. Penney Co. post a smaller loss for the
second quarter than Wall Street expected, but the moderate-price department
store chain expects sales to stay sluggish as consumers grapple with economic
worries. Penney's shares fell more
than 6 percent, by $2.04 to $31.30, in afternoon trading as investors were
disappointed with its upgraded but conservative profit forecast, which fell
mostly below Wall Street expectations. During a conference call
with investors, Chairman and CEO Myron Ullman III said Penney's business is
stabilizing amid signs the economy is beginning to recover. And that steadiness
is making it easier for the company to plan methodically, though sales are
still below what Ullman would like. Energy prices slump with
consumers still nervous NEW YORK (AP) -- Energy
prices finished the week sharply lower, giving up more than 4 percent Friday on
evidence that consumers are unlikely to take the lead in an economic recovery. Oil, which has been propped
up by optimism that people will begin spending more, tumbled after a
week-ending report suggested those hopes may be premature. Benchmark crude for
September delivery lost $3.01 to settle at $67.51 a barrel on the New York
Mercantile Exchange, a low point for the month. In London, Brent prices gave up
$1.07 to settle at $72.41 a barrel on the ICE Futures exchange. Runaway receiver at odds
with SEC in Stanford case DALLAS (AP) -- The attorney
supposed to clean up what the government says was Texas businessman R. Allen
Stanford's multibillion-dollar Ponzi scheme is managing to anger just about
every party involved in the case. The Securities and Exchange
Commission and other stakeholders in the complicated and far-flung case say
Dallas attorney Ralph Janvey, appointed by the court to track down billions of
missing dollars, has instead become a rogue receiver who refuses to cooperate
with the SEC. The latest flash point has
been Janvey's demands for more than $27 million in fees for himself and the
team of lawyers and consultants he hired to take over Stanford's business
empire and track down the missing billions. Euro area prices fell 0.7
pct in year to July LONDON (AP) -- Prices in the
16 countries that use the euro fell on an annual basis for the second straight
month in July and by more than previously anticipated, official figures showed
Friday. The European Union's
statistics office Eurostat said consumer prices in the euro zone fell by 0.7
percent in July from the previous year, 0.1 percentage point more than it had
previously estimated and ahead of June's 0.1 percent fall. The monthly decline
was also 0.7 percent. Eurostat said the biggest
drops were recorded in Ireland and Belgium. It said a 5.5 percent
decline in transport cost, related to lower year-on-year energy prices, was the
main influence behind the further fall in overall prices. Hong Kong recession ends as
economy grows 3.3 pct HONG KONG (AP) -- Hong
Kong's economy broke out of a yearlong recession in the second quarter as the
territory benefited from strong growth in mainland China and better conditions
in the West, the government said Friday. The pickup adds to the list
of economies in Asia and beyond to emerge from recession or shrink at a
less-dismal pace since the banking crisis sent global production and demand
plunging last year. Both Germany and France resumed growing last quarter. The southern Chinese
territory's economy, slammed four straight quarters by free-falling world
demand for exports, grew by 3.3 percent on a seasonally adjusted
quarter-to-quarter basis, the government said. The economy contracted 4.3
percent in the first quarter. SoCal man to plead guilty in
bank secrets case LOS ANGELES (AP) -- Federal
prosecutors say a Malibu man has agreed to plead guilty to failing to report $1
million he transferred to an account at Swiss bank UBS to avoid paying taxes. Prosecutors in Los Angeles
said Friday that John McCarthy will plead guilty to failing to file tax papers. McCarthy is expected to
appear in court Sept. 14. He faces up to five years in prison and fines
totaling $250,000 if the plea is approved by a judge. McCarthy's attorney did
not immediately return a phone message seeking comment. McCarthy is the first
alleged tax dodger to be named after the Swiss government agreed to U.S.
demands to reveal identities of UBS AG bank customers. By The Associated Press The Dow Jones industrial
average fell 76.79, or 0.8 percent, to 9,321.40. The S&P 500 index fell
8.64, or 0.9 percent, to 1,004.09, while the Nasdaq composite index fell 23.83,
or 1.2 percent, to 1,985.52. Benchmark crude for
September delivery lost $3.01 to settle at $67.51 a barrel on the New York
Mercantile Exchange, a low point for the month. In London, Brent prices gave up
$1.07 to settle at $72.41 a barrel on the ICE Futures exchange. Natural gas prices fell to
its lowest level this year. The contract for September delivery dropped 9.8
cents to settle at $3.238 per 1,000 cubic feet. In other Nymex trading,
gasoline for September delivery gave up 8.12 cents to settle at $1.938 a
gallon. Heating oil fell 6.18 cents to settle at $1.841 a gallon.