On
Monday November 15, 2010, 5:59 pm
Companies crank up deal
machine, put cash to work
NEW YORK (AP) -- Big deals
are a big deal again.
From Caterpillar to Chevron
to Google, some of the best-known names in corporate America are scooping up
smaller companies, finally putting the piles of cash they've been sitting on to
use and positioning themselves for a stronger economic recovery.
The volume of mergers and
acquisitions is still running well below what it was in 2007 before the Great
Recession, but the burst in activity is a sign of economic vitality and shows
that companies are starting to shake off some of their caution.
Caterpillar digs deep in
$7.6B deal for Bucyrus
NEW YORK (AP) --
Caterpillar, the world's largest construction and mining equipment maker, moved
aggressively to capitalize on demand in emerging markets Monday with a $7.6
billion buyout of Bucyrus International.
Bucyrus makes surface
mining equipment used for coal, copper, iron ore, oil sands and other minerals.
With a grinding economic recovery
ongoing in the West, global companies like Caterpillar Inc. have driven further
into China, India and Brazil, where the appetite for raw materials used in
construction and mining are strong.
Retail sales rise is led by
higher auto purchases
WASHINGTON (AP) -- A surge
in auto purchases helped lift retail sales in October by the largest amount in
seven months. But excluding autos, retail sales rose more modestly.
October marked the fourth
straight increase in retail sales after declines in May and June. Those drops
had raised fears about the economic recovery. Still, economists say consumers
probably aren't spending enough to lift sales growth above the lackluster pace
of the past six months.
Consumers are still
struggling with scant income gains, high debts and painfully high unemployment,
which remains stuck at 9.6 percent even though the recession ended more than a
year ago.
E-mail secondary as
Facebook revamps messaging
SAN FRANCISCO (AP) --
Facebook unveiled a new messaging platform Monday that takes aim at one of the
Internet's first applications, e-mail.
Though CEO Mark Zuckerberg
didn't go as far as declaring e-mail dead, he sees the four-decade-old
technology as secondary to more seamless, faster ways of communicating such as
text messages and chats. In other words, Facebook is betting that today's high
school students are on to something.
The new platform, which
will be rolled out to users in the coming months, integrates cell phone texts,
chats, e-mail and the existing Facebook messages. It seeks to bring together
all these different forms of communication in one inbox, centered around the
people sending it rather than the type of technology they use.
GOP economists criticize
Fed's bond-purchase plan
WASHINGTON (AP) -- Federal
Reserve Chairman Ben Bernanke's plan to rejuvenate the economy by having the
Fed buy $600 billion in Treasury bonds is coming under renewed attack -- this
time from fellow Republican economists.
They argue that pumping
many more dollars into the economy could eventually trigger inflation and
weaken the dollar too much. The economists are making their case in a letter to
Bernanke and in ads to run this week in the Wall Street Journal and the New
York Times.
Their criticism risks
pushing the Fed closer into Washington politics, where many fear the central
bank's independence could be compromised.
AP Source: GM may raise
price range for IPO
DETROIT (AP) -- Investor
demand for General Motors stock is so high that the company may raise its
target price range for the shares before Thursday's initial public offering, a
person briefed on the matter said Monday.
The automaker, just 16
months out of bankruptcy protection, has impressed analysts and investors with
its third-straight quarterly profit and a prediction of much bigger earnings if
U.S. auto sales continue to improve.
Any share price increase
would certainly be a boon for GM's largest stockholder, the U.S. government,
which is trying to get back the $50 billion it gave GM last year to get through
restructuring.
Debt tensions flare up as
Ireland denies bailout
DUBLIN (AP) -- Europe's
debt crisis spread widening ripples Monday, with Irish officials denying that
their talks with other eurozone governments were aimed at getting a bailout,
while the Greek Prime Minister accused Germany of making things worse with talk
of forcing creditors to take losses.
The flare-up in tension
adds to pressure on EU finance ministers, who will be in Brussels Tuesday for
their monthly meeting.
After spending their recent
gatherings focusing on crisis prevention, a weeklong sell-off of Irish and
Portuguese bonds has thrown them back into crisis management.
Lowe's: Shoppers still shy
on big-ticket projects
NEW YORK (AP) -- Lowe's
Cos.' said Monday shoppers are spending on smaller painting and gardening
projects but still avoiding major renovations because of worries about the
economy.
But the home-improvement
retailer said Monday it is focused on reining in inventory and costs, which
helped its third-quarter profit improve, and gaining a bigger chunk of the
market.
Consumers' caution, coupled
with unexpected heat and drought in August and September that stymied landscape
projects, kept third-quarter revenue in check. It rose 2 percent to $11.59
billion, missing expectations of $11.75 billion, according to a poll by Thomson
Reuters.
But third-quarter net
income rose 19 percent, as the No. 2 home-improvement retailer kept a rein on
costs, including lowering payroll costs and closing two regional offices.
Toyota safety in spotlight
after fatal Utah crash
SALT LAKE CITY (AP) --
Police suspect problems with a Toyota Camry's accelerator or floor mat caused a
Utah crash that killed two people and injured two others, raising new concerns
about the safety of the vehicles.
Paul Vanalfen's 2008 Camry
slammed into a rock wall in Wendover on Nov. 5, killing him and passenger
Charlene Lloyd. Police said the 66-year-old man from Washington Terrace died at
the scene, and the 38-year-old Lloyd died the following day.
Utah Highway Patrol Sgt.
Nathan Croft told The Salt Lake Tribune that the Camry was subject to at least
three recalls. The recall and repair for a sticking accelerator had been
completed, he said.
In the past year, Toyota
Motor Corp. has recalled millions of vehicles because of floor mats that can snag
gas pedals or accelerators that can sometimes stick.
Official to AP: Rolls-Royce
replacing A380 engines
LONDON (AP) -- Rolls-Royce
will temporarily replace entire engines that have oil leaks on the world's
largest jetliner after one motor suffered a frightening midair disintegration,
an aviation regulator told The Associated Press on Monday.
The official said the
British engine-maker would take off faulty engines and replace them with new
ones. It will then fix the leaking part and swap the engine back again.
The official, who has been
briefed by Rolls-Royce and some of the affected airlines, spoke on condition of
anonymity because of the sensitivity of the matter. Rolls-Royce declined to
comment.
By The Associated Press
The Dow Jones industrial
average rose 9.39, or 0.1 percent, to close at 11,201.97. It had been up as
much as 88 points earlier.
The broader Standard &
Poor's 500 index fell 1.46, or 0.1 percent, to 1,197.75, while the
technology-focused Nasdaq composite index fell 4.39, or 0.2 percent, to
2,513.82.
Benchmark oil for December
delivery slipped 2 cents to $84.86 a barrel in trading on the New York
Mercantile Exchange.
In other early Nymex
trading in December contracts, heating oil added 0.77 cent to $2.3709 a gallon,
gasoline rose 2.49 cents to $2.1950 a gallon and natural gas rose 4.6 cents to
$3.845 per 1,000 cubic feet.
In London, Brent crude rose
36 cents to $86.70 a barrel on the ICE Futures exchange.