On Monday August 30, 2010, 6:11 pm EDT
Americans spend a bit more
as economy limps along
WASHINGTON (AP) --
Americans are spending a little more this summer, but hardly enough to
rejuvenate the weakening economy.
What is needed is a bigger
boost in salaries and more jobs. Economists don't see either coming this year,
which is why the economy is likely to limp along.
Still, modest gains in
spending were a welcome sign after a string of economic reports last week
raised fears of the country slipping back into a recession.
Consumer spending rose 0.4
percent in July, with much of the strength coming from increased demand for
autos, the Commerce Department reported Monday. It was the best showing since
March, but it followed three lackluster months when spending was essentially
flat.
Americans did earn a little
more in July after seeing their incomes unchanged in June. Still, the 0.2
percent increase was mostly the result of small wage and salary gains that fell
far below increases seen in more robust economic recoveries, economists said.
And some of the gains came from a jump in Social Security payments.
Intel buying German
chipmaker's wireless unit
NEW YORK (AP) -- Intel Corp.
is buying the wireless communications unit of Germany's Infineon Technologies
AG for $1.4 billion in cash, the second deal in as many weeks that allows the
chip-maker to expand beyond the struggling personal computer market.
Intel has tried with
limited success to get its chips into cell phones. It is hoping to change that
by buying Infineon's wireless business, which makes chips for smart phones such
as Apple Inc.'s iPhone.
It's a problem Intel is
urgently trying to fix because the smart phone market is too lucrative for
Intel to remain a bit player.
Genzyme rejects
Sanofi-Aventis offer
NEW YORK (AP) --
Biotechnology company Genzyme Corp. said Monday it rejected Sanofi-Aventis SA's
$18.5 billion buyout offer because it undervalues the company.
On Sunday, French drug
developer Sanofi-Aventis offered $69 per share for Genzyme, which has been
struggling in the aftermath of manufacturing problems for key drugs.
Genzyme shares traded above
the offering price Monday, suggesting shareholders expect the bid to go higher.
Stocks drop as investors
enter week cautiously
NEW YORK (AP) -- Stocks
fell Monday after more signs of slowing economic growth got investors worried
ahead of a key report on jobs later this week.
The Dow Jones industrial
average lost ground throughout the day and closed with a loss of 141 points.
Other indexes also fell more than 1 percent. Bond prices rose, sending interest
rates lower, as money moved back into the Treasury market.
The latest cause for worry
on the economy came in a report early Monday showing that personal incomes rose
less than expected in July. That added to a series of discouraging economic
indicators recently suggesting that growth could slow down in the second half
of the year.
Updated car stickers to
include environmental info
WASHINGTON (AP) -- Will
your new car get an A in fuel efficiency? A government proposal may add letter
grades to showroom window stickers on new cars and trucks to reflect a
vehicle's overall fuel economy and greenhouse gas emissions.
The Transportation
Department and Environmental Protection Agency said Monday they were
considering two options to upgrade the energy and environmental information
that will adorn labels on new vehicles in car dealership showrooms, beginning
with the 2012 model year. The government is considering a letter grade approach
or updating the design of the current sticker to include comparisons of a
vehicle's fuel economy and tailpipe emissions.
Consumers scan the window
stickers to compare vehicles when shopping for a new car or truck. The stickers
have not been updated significantly in three decades and the government wants
the labels to reflect emerging vehicle technologies and account for greenhouse
gas emissions affecting the environment.
Chrysler dealers hear plans
to sell Fiat minicars
DETROIT (AP) -- Fiat is
coming back to the U.S. after a 30-year absence, and now Chrysler Group dealers
have to decide whether they want to sell the Italian brand that initially will
offer just one model, the tiny Fiat 500.
At a meeting in Detroit
Monday, about 400 Chrysler, Dodge and Jeep dealers who want to sell Fiats were
told that the exotic minicar at first will be the only 2011 model in their Fiat
showrooms.
Chrysler, which is now
controlled by Italy's Fiat, was short on specifics such as price and future
models. A larger model was promised, although covered by a tarp.
Chrysler hopes to sell
50,000 of the stylish, bulb-shaped 500s the first year they arrive.
3M to acquire Cogent for
about $943 million
NEW YORK (AP) -- 3M Co.,
the conglomerate whose products range from Post-Its to respirators, computer
arms and films for LCD TV screens, is trying to expand into the security market
by buying Cogent Inc. for about $943 million.
Cogent develops automated
systems that read finger and palm prints, and it makes iris and face
recognition systems used by government, law enforcement and border patrol
agencies.
Cogent's board of directors
already has agreed to the deal and is recommending that shareholders accept it.
3M said Monday it will pay $10.50 per share for Cogent, or nearly 18 percent
above Cogent's closing price on Friday.
Google, AP strike new deal
on Web licensing rights
SAN FRANCISCO (AP) --
Google Inc. has retained the right to publish content from The Associated Press
under a new licensing deal that thaws the sometimes-frosty relationship between
the two companies.
The multiyear agreement
announced Monday has two key components: an undisclosed payment for the rights
to AP's content, and a data-sharing arrangement aimed at helping the news cooperative
make more money across the Internet.
The contract's financial
terms and duration weren't disclosed.
The Google deal is part of
AP's effort to bring in more revenue from the Web as less money comes in from
newspapers and broadcasters hard hit by an advertising slump. As part of that
process, AP renewed its licensing agreement with Yahoo Inc. earlier this year
and is trying to strike a new deal with Microsoft Corp.
Japan eases policy, plans
new economic stimulus
TOKYO (AP) -- Japan's
government and the central bank threw the economy a double lifeline Monday,
seeking to contain a strong yen and revive a faltering recovery.
To boost liquidity, the
central bank unveiled a new six-month low-interest loan program to financial
institutions. Combined with an existing three-month funds-supplying operation
worth 20 trillion yen ($236 billion), banks will now have access to a total of
30 trillion yen ($355 billion).
The 8-1 decision by the
central bank's policy board was accompanied by an unanimous vote to keep its
key interest rate at a super-low 0.1 percent.
The central bank's move,
which disappointed investors and analysts hoping for bolder action, was
followed several hours later by Prime Minister Naoto Kan's plans for a new
economic stimulus package worth 920 billion yen ($10.9 billion). Those steps
were also criticized as inadequate.
India BlackBerry ban
averted for 60 more days
MUMBAI, India (AP) -- India
said it withdrew a threat Monday to ban BlackBerry services for at least two
more months after the device's maker, Research In Motion Ltd., agreed to give
security officials "lawful access" to encrypted data.
The Ministry of Home
Affairs, which wants real time access to encrypted corporate e-mails and
instant messaging, said in a statement it would review RIM's security proposals
over the next 60 days after the Department of Telecommunications studies the
feasibility of routing BlackBerry services through a server in India.
It remains unclear
precisely what concessions Research In Motion agreed to in order to avert the
ban.
By The Associated Press
The Dow Jones industrial
average fell 140.92, or 1.4 percent, to close at 10,009.73. The Standard &
Poor's 500 index fell 15.67, or 1.5 percent, to 1,048.92, while the Nasdaq
composite index fell 33.66, or 1.6 percent, to 2,119.97.
Benchmark crude for October
delivery lost 47 cents to settle at $74.70 a barrel on the New York Mercantile
Exchange.
In other Nymex trading in
September contracts, heating oil fell 1.91 cents to settle at $2.0252 a gallon
and gasoline lost 1.38 cents to settle at $1.9341 a gallon.
October natural gas added
10.7 cents to settle at $3.812 per 1,000 cubic feet.
In London, Brent crude fell
5 cents to settle at $76.60 a barrel on the ICE futures exchange.