On Monday November 1, 2010, 6:19 pm EDT
Economy offers mixed
picture day before election
WASHINGTON (AP) -- A mixed
picture of the economy emerged one day before key midterm elections that have
focused on the nation's financial health.
Spending by Americans
slowed in September and their incomes fell for the first time in more than a
year. At the same time, manufacturing activity grew by the most in five months
and the weak construction industry showed a little life.
The new data reported by
the government and a private trade group Monday suggest the economy is growing,
albeit at an anemic pace. Some analysts worry that conditions could worsen
after the election when government programs that have been propping up the
economy end.
Fixing cargo security
system would cost billions
LONDON (AP) -- The
technology exists to safeguard the world's air transport system against threats
like the Yemen-based mail bombs, but the cost may be too high to be practical.
Analysts warn that the cost
of screening every piece of air cargo in a bid to prevent terrorists from
downing airliners might bankrupt international shipping companies, hobble
already weakened airlines and still not provide full protection.
Stocks retreat from early
gains
NEW YORK (AP) -- Stocks
closed mixed Monday as traders waited for this week's election results and more
details about the Federal Reserve's plan to stimulate the economy.
Stocks rose early in the
day following reports of unexpected growth in the manufacturing industry in
both the U.S. and China last month. The Dow Jones industrial average rose 125
points, led by manufacturers Caterpillar Inc., United Technologies Corp. and
General Electric Co.
But stocks were unable to
hold on to their gains ahead of the election and the two-day Fed meeting that
starts Tuesday. The Dow fell steadily throughout the day, briefly turning lower
before a late rally gave it a modest advance.
Sources: GM nears terms for
initial public offer
DETROIT (AP) -- Two people
briefed on the matter say shares of General Motors Co. stock should sell
between $26 to $29 each in an initial public offering that could happen in
mid-November.
The people say the U.S.
government is expected to reduce its stake in the company from 61 percent to
around 43 percent in the sale.
Terms of the sale are not
final because GM's board has yet to approve them.
The people say bankers are
recommending that the shares be sold on Nov. 18.
Fed poised to buy more
bonds to try to aid economy
WASHINGTON (AP) -- With
unemployment at 9.6 percent, the Federal Reserve is all but certain this week
to launch a new program to try to fortify the economy. Yet the program isn't
expected to do much to ease a crisis that's left nearly 15 million people
jobless.
On Tuesday, Chairman Ben
Bernanke opens a two-day meeting where he will help craft a Fed plan to buy
more government bonds. The idea is for those purchases to further drive down
interest rates on mortgages and other loans. Cheaper loans might then lead
people to spend more. The economy would benefit. And companies would step up
hiring.
That's the plan, anyway.
But many question whether the Fed's new plan will provide much benefit.
EXCO chief to buy company
shares in $4B deal
NEW YORK (AP) -- The CEO of
oil and gas producer EXCO Resources Inc. said Monday he plans to buy all the
company's outstanding shares in a deal valued at more than $4 billion.
Douglas H. Miller is
expected to take the company private, which would make it easier to shut down
unprofitable natural gas projects and wait out the slump in prices. His offer
of $20.50 per share represents a 38 percent premium over EXCO's closing price
on Friday. Shares rose $4.47, or 30 percent, to close at $19.30 Monday.
EXCO, based in Dallas,
develops onshore properties in North America and controls about 1 trillion
cubic feet of proven gas reserves. Like most petroleum companies in the U.S.,
EXCO has wrestled with low natural gas prices that have made some of its
operations unprofitable.
Enron's Skilling seeks new
trial in Houston appeal
HOUSTON (AP) -- The ex-CEO
of disgraced energy giant Enron asked a federal appeals court on Monday to
grant him a new trial based on a Supreme Court ruling his attorney said puts
his conviction for conspiracy and securities fraud in question.
Skilling's attorney Daniel
Petrocelli presented his argument to a three-judge panel scheduled by the New
Orleans-based 5th U.S. Circuit Court of appeals. The U.S. Supreme Court's ruling
in June that an anti-fraud law was improperly used to help convict Skilling in
2006 for his role in Enron's calamitous downfall demanded a new trial,
Petrocelli said. The jury received bad instructions, he said, that could have
tainted their decision-making process.
The prosecution, however,
countered that the instructions given to the jury were "harmless"
because the evidence against Skilling was overwhelming. The 19 convictions for
conspiracy, securities fraud, insider trading and lying to auditors should
stand, prosecutor Doug Wilson said.
Bankruptcy case looms for
National Enquirer owner
After years of dishing
tales of celebrity folly and misfortune, The National Enquirer's publisher has
fallen on hard times of its own.
American Media Inc. plans
to seek federal bankruptcy protection in the next two weeks or so. The
privately held company, based in Boca Raton, Fla., announced its intention
Monday without sharing any details about its finances.
American Media, whose other
publications beside The National Enquirer include Star, Shape, Men's Fitness
and Fit Pregnancy, is trying to get most of its creditors to back its
reorganization plan before it files for Chapter 11 protection. About 80 percent
of American Media's bondholders already have expressed their support, the
company said.
Ambac in talks for
prepackaged bankruptcy
NEW YORK (AP) -- Bond
insurer Ambac Financial Group Inc. said Monday it will file for bankruptcy by
the end of the year, either through a prepackaged plan arranged with senior
debt holders or through Chapter 11 proceedings.
The development is the
embattled company's latest warning amid two years of struggle to regain its
footing after getting pummeled by the collapse of the housing market.
Shares of the once
high-flying stock tumbled 41 cents, or 50 percent, to close at 41 cents on very
heavy volume. The stock traded above $95 a share in the spring of 2007, before
the housing bust.
McKesson to acquire US
Oncology for $560M
SAN FRANCISCO (AP) --
Medical supplies distributor McKesson Corp. said Monday it will pay $560
million in cash to acquire US Oncology, a company that provides drugs and
services to 500 cancer centers across the U.S.
McKesson said there is
already an overlap between the goods and services provided by the two
companies, and the combination will allow for cost-savings from shared
operations.
McKesson plans to acquire
all outstanding shares of US Oncology, which is a privately held company based
in The Woodlands, Texas. In addition to what it is paying for the company's
shares, McKesson said it will assume $1.6 billion of US Oncology's debt, which
will be prepaid or refinanced.
By The Associated Press
The Dow Jones industrial
average rose 6.13, or nearly 0.1 percent, to finish at 11,124.62
The broad Standard &
Poor's 500 index rose 1.12, or 0.1 percent, to 1,184.38, while the
technology-focused Nasdaq composite index fell 2.57, or 0.1 percent, to
2,504.84.
Benchmark oil for December
delivery rose $1.52 to settle at $82.95 a barrel on the New York Mercantile
Exchange.
In other energy trading on
the Nymex, heating oil was up 4 cents to settle at $2.2777 a gallon, gasoline
gained 3.35 cents to $2.0929 a gallon and natural gas fell 20.6 cents to $3.832
per 1,000 cubic feet.
In London, Brent crude rose
$1.47 to settle at $84.62 a barrel on the ICE Futures exchange.