On Friday October 29, 2010, 6:10 pm EDT
Economy still sluggish as
nation prepares to vote
WASHINGTON (AP) -- The last
read on the economy before the midterm elections found Americans are spending a
little more but not nearly enough to bring down high unemployment -- one final
bit of bad news for Democrats.
The economy expanded at a 2
percent pace from July to September, the Commerce Department said Friday. It
marked a slight improvement from the scant 1.7 percent growth rate in the
previous quarter.
But to keep up with
population growth and actually bring down unemployment, the economy must grow
much faster. Economists figure it takes growth at a rate of about 5 percent for
a full year to lower the jobless rate by a percentage point.
Democrats risk losing
control of the House and perhaps the Senate on Tuesday at a time when nearly 15
million Americans are out of work and the jobless rate is 9.6 percent.
Sick of campaign ad
avalanche? TV stations aren't
NEW YORK (AP) -- For TV
viewers, this cutthroat election year is a riot of attack ads and media
saturation made possible by big-money donors. For TV stations, it's a stimulus
package.
One research group expects
TV political spending to hit a record $3 billion. The windfall may continue
well past Election Day because regular advertisers are getting squeezed out of
the schedule and could spend their ad budgets later. Coming out of a recession
that put some broadcasters in or near bankruptcy protection, political spending
is emerging as a critical -- but temporary -- source of revenue.
Several factors created the
upsurge: tea party enthusiasm, self-financed millionaire candidates, an
unusually high number of toss-up races and a Supreme Court ruling in January
that eased rules on corporate campaign donations.
In France, happiness is
retiring at 60
PARIS (AP) -- Time is on
Guy Robert's side: Since he retired at age 60, he's using his new freedom to
turn back the family clock and trace the paths of his ancestors, from a 17th
century royalist to grandparents who resisted the Nazis in World War II.
Robert wants his son and
daughter to share in the bounty by retiring at 60, too.
President Nicolas Sarkozy
says that dream is unrealistic and is in the midst of changing France's pension
system to increase the retirement age to 62. Even that is still far short of
other rich countries such as the United States and neighboring Germany, which
have raised retirement ages.
Stocks edge up to close
strong October
NEW YORK (AP) -- Stocks
edged higher Friday to close out the best October for the Dow Jones industrial
average in four years.
Trading activity was
relatively light, with the Dow keeping to a tight range of just 50 points, amid
uncertainty over next week's elections. News that the U.S. economy rose at just
a 2 percent annual pace in the three months ending in September had little
effect on stock prices.
Every market index was up
more than 3 percent for the month. The Nasdaq finished October with a 5.9
percent gain. For the first time since April, major stock indexes have risen for
two months in a row. The Dow and S&P are both up about 6 percent for the
year, while the Nasdaq is up 10.5 percent.
Big Oil resets its sights
on Gulf of Mexico
NEW YORK (AP) -- Big Oil is
ready to go back to work in the Gulf of Mexico, even with the U.S government
promising to rule the waters with a heavier hand.
Chevron, Exxon, Royal Dutch
Shell are willing to endure the additional time to secure permits and extra
costs that will result from new government regulations because they've come to
depend on deepwater drilling to replenish their reserves. The companies
outlined plans for the Gulf this week as most of them reported improved
earnings for the third quarter.
These big oil and gas
companies know the geology of the Gulf much better than other parts of the
world. Taxes and royalties for projects in U.S. waters are considered to be
much lower than foreign operations, and it's much easier and cheaper to deliver
the oil to the consumer.
Chevron 3Q profit slips 2
pct
NEW YORK (AP) -- Chevron
Corp. said Friday income slipped nearly 2 percent in the third quarter on costs
related to the Gulf of Mexico drilling moratorium and hefty foreign exchange
charges.
Chevron, America's
second-largest oil company, reported earnings of $3.77 billion, or $1.87 per
share, for the three months ended Sept. 30. That compares with $3.83 billion,
or $1.92 per share, in the year-ago period. Revenue increased 7 percent to
$49.7 billion.
The results didn't meet
Wall Street expectations, and shares dropped more than 2 percent.
Chevron benefited from
higher oil and gas prices and better profit margins in its refining business,
but it also booked $367 million in foreign-currency expenses. Chevron's
exploration and production operations in the U.S. were more costly due to the
U.S. ban on deepwater drilling following the BP oil spill.
Merck 3Q profit plunges 90
percent on deal charges
Merck & Co. posted a 90
percent drop in third-quarter profit, due to large charges for its $41.1
billion acquisition of Schering-Plough Corp. last November and a legal reserve
for a federal investigation.
Also, Merck had a $2.8
billion gain a year ago from selling its animal health business to win
antitrust approval to buy Schering-Plough, which also makes veterinary
medicines.
The world's second-biggest
drugmaker by revenue had net income in the quarter of $341.6 million, or 11
cents per share. That's down from $3.42 billion, or $1.61 per share, a year
earlier.
Samsung, Sony book profits
but wary of road ahead
TOKYO (AP) -- Three of the
world's biggest names in electronics -- Samsung, Sony and Panasonic -- are
bracing for weaker global demand and a rocky road even as they reported stellar
quarterly profits Friday.
South Korea's Samsung
Electronics Co. booked a record net profit for the third straight quarter. Japanese
rival Sony Corp. climbed back to the black. Panasonic Corp.'s net profit surged
more than fivefold.
The results underscore how
major Asian manufacturers have benefited from a recovering global economy and
government stimulus measures that boosted consumer spending. But with that
recovery now in doubt in key overseas markets like the U.S., companies are
preparing for a tougher fight for customers and with each other. Rising
currencies in Asia also cloud their outlooks.
Court in Ill. reverses 2
Conrad Black convictions
CHICAGO (AP) -- A federal
appeals court on Friday reversed two of former media mogul Conrad Black's 2007
fraud convictions -- raising at least the possibility he won't return to
prison.
After serving two years of
a 6 1/2-year sentence, Black was released earlier this year from a federal
prison in Florida while his case was appealed.
The 7th U.S. Circuit Court
of Appeals in Chicago unanimously agreed that a recent U.S. Supreme Court
ruling sharply curtailing so called "honest services" laws meant the
two fraud convictions had to be tossed. But the ruling was only a partial
victory for Black because the three-judge panel upheld two other convictions
for fraud and obstruction of justice.
By The Associated Press
The Dow Jones industrial
average rose 4.54, or 0.1 percent, to close at 11,118.49. The Standard and
Poor's 500 Index fell 0.52, or 0.1 percent, to 1,183.26, while the technology
focused Nasdaq composite index rose less than a point to 2,507.41.
Benchmark crude for
December delivery fell 75 cents to settle at $81.43 on the New York Mercantile
Exchange.
In other energy trading on
the Nymex, heating oil lost 2.34 cents to settle at $2.2201 a gallon. Gasoline
dropped 0.94 cent to settle at $2.1045 per gallon. Natural gas gained 14.8
cents to settle at $4.038 per 1,000 cubic feet.
In London, Brent crude fell
44 cents to settle at $83.15 a barrel on the ICE Futures exchange.