On Wednesday October 6, 2010, 6:00 pm EDT
Strength in emerging
economies raises trade fears
WASHINGTON (AP) -- China
and other emerging nations are lifting the global economy, but their strength
threatens to come at the expense of the United States and Europe.
The emerging countries are
benefiting from low-priced exports fueled by artificially low currencies.
That's raising the prospect of trade frictions for years to come.
In its latest economic
forecast, the International Monetary Fund predicts the world economy will
expand 4.8 percent this year and 4.2 percent next year. That would far surpass
last year's 0.6 percent decline, the worst performance since World War II.
Vanguard lowers mutual fund
fees for 2 million
BOSTON (AP) -- Think of
Vanguard as the Wal-Mart of investing. It manages more money than any other
mutual fund company, so it has tremendous pricing power. When it makes a move,
competitors feel pressure to follow suit.
Vanguard said Wednesday
that it would reduce fees for about 2 million of its individual customers, the
latest in a series of cost-cutting moves that have turned up the heat on rivals
like Fidelity Investments and Capital Group's American Funds.
The change applies mostly
to individual investors, not to institutional shares that are held by companies
through their 401(k) retirement plans. Institutional shares already charge the
lowest fees of any class.
Stocks dip, Treasury yields
drop after jobs data
NEW YORK (AP) -- Stocks
closed mostly lower Wednesday after a disappointing report on the jobs market
renewed concern about the economy. Treasury yields sank to new lows as
investors sought safety and anticipated more stimulus measures from the Federal
Reserve.
Payroll company ADP said
private employers cut jobs in September for the first time in seven months.
Investors are seeing a silver lining in the news, however, hoping that it could
help push the Federal Reserve to take more action to get the U.S. economy going
next month, including stepping up its purchases of bonds.
Gold reached another high
and the dollar slumped further against other currencies on anticipation that
U.S. interest rates could head even lower if the Fed moves aggressively to buy
bonds and take other measures to encourage borrowing.
Housing slump hammers local
government tax revenue
WASHINGTON (AP) -- City tax
revenues dropped this year by the most in 25 years, hit hard by falling home
prices that could crimp local budgets for years to come.
Property tax revenue in
U.S. cities fell 1.8 percent in fiscal year 2010, according to a report
released Wednesday by the National League of Cities. It's the first drop in the
25 years that the survey has been conducted.
Depressed home values are
just beginning to affect property tax receipts and the impact could linger for
at least two more years, the report said. The declines are only now being felt
because real estate assessments lag changes in market values.
GE's Dresser deal taps into
the natural gas boom
NEW YORK (AP) -- General
Electric Co. is expanding its energy business by tapping into the growing
reliance of utilities and factories on natural gas.
The addition Wednesday of
privately held energy equipment maker Dresser Inc. for $3 billion bolsters GE's
already sizable position in energy.
Analysts predict that
recent development of huge, cheaply accessible reservoirs of natural gas found
deep underground in shale formations worldwide will mean relatively low and
stable natural gas prices for years to come. As a result utilities, chemicals
producers and other industrial companies are beginning to use more natural gas
instead of coal or oil either as a feedstock or to generate electricity.
Costco 4Q net income rises
on strength overseas
PORTLAND, Oregon (AP) --
Costco Wholesale Corp.'s fourth-quarter net income rose nearly 16 percent on
increased revenue from membership fees and international operations.
Shoppers, who began to
flock to the warehouse club operator when the recession hit for deals on
everyday items, continued to drive strong sales of food and necessities.
Company leaders said purchases of small extras, like housewares and sporting
goods, continued to grow modestly.
The nation's largest
warehouse club operator reported Wednesday that it earned $432 million, or 97
cents per share, for the period that ended Aug. 29. That's up from $374
million, or 85 cents per share, in the same quarter last year. Revenue rose 8
percent to $24.13 billion.
Report: Apple to make iPhones
for CDMA networks
SEATTLE (AP) -- A new
report says Apple Inc. is getting ready to manufacture a new iPhone that works
on cellular networks based on CDMA technology, a move that would allow the
phones to be used by more carriers, including Verizon Wireless.
It has long been rumored
that Verizon Wireless will eventually start selling the iPhone. But Lowell
McAdam, the head of Verizon Wireless, on Wednesday downplayed the possibility
of an iPhone on Verizon's current 3G network. Verizon expects one to come later
for Verizon's newer, faster 4G network, McAdam said at a wireless conference in
San Francisco, echoing comments the company's CEO made in September.
A version of the iPhone
that uses the CDMA network technology wouldn't necessarily be for Verizon
Wireless. Sprint Nextel Corp. uses the same technology, as do some Chinese and
Korean carriers. Sprint and Apple declined comment.
The Wall Street Journal,
citing people briefed by Apple Inc., said Wednesday that the company will start
mass-producing the new iPhones by year's end. They could go on sale early next
year.
Facebook offers new way to
sort friends, copy info
PALO ALTO, Calif. (AP) --
Facebook is trying to make it easier for people to share their updates
selectively and draw distinctions between friends, family members and
co-workers on the Web's biggest social hub.
Mark Zuckerberg, Facebook's
founder and CEO, unveiled the latest changes Wednesday at a press conference
that marked his first public appearance since last Friday's debut of "The
Social Network," a movie tracing Facebook's origins and evolution.
FTC:
"Eco-friendly" isn't always consumer friendly
NEW YORK (AP) -- It's an
inconvenient truth: Many of the environmental claims in advertisements and
packaging are more about raking in the green than being green.
Aiming to clear up
confusion for consumers about what various terms mean, the Federal Trade
Commission has revised its guidelines for businesses that make claims about
so-called "eco-friendly" products.
The proposed new version of
the agency's Green Guides was released Wednesday, with recommendations for when
to use words like "degradable" and "carbon offset," in
advertisements and packaging, and warnings about using certifications and seals
of approval that send misleading messages.
By The Associated Press
The Dow Jones industrial
average rose 22.93, or 0.2 percent, to close at 10,967.65.
Broader indexes fell. The
Standard & Poor's 500 fell 0.78, or 0.1 percent, to 1,159.97, while the
Nasdaq composite index fell 19.17, or 0.8 percent, to 2,380.66.
Benchmark crude added 41
cents to settle at $83.23 a barrel on the New York Mercantile Exchange.
In other Nymex trading in
November contracts, heating oil gained 0.52 cent to settle at $2.3078 a gallon
and gasoline added 3.04 cents to settle at $2.1559 a gallon.
In London, Brent crude rose
22 cents to settle at $85.06 a barrel on the ICE Futures exchange.