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On Friday November 26, 2010, 5:18 pm EST

All-night shop-a-thon: Black Friday draws crowds

Bargain shoppers, braving rain or frigid weather, crowded the nation's stores in the wee hours of the night to get their hands on deals from TVs to toys on Black Friday.

Early signs pointed to bigger crowds at many stores including Best Buy, Sears, and Toys R Us for the traditional start to the holiday shopping season.

In an encouraging sign for retailers and for the economy, more shoppers appeared to be buying for themselves than last year, when such indulgences were limited. Lengthened hours that pushed some store openings into Thanksgiving also appeared to pay off.

Big New York insider trading probe spawns another

NEW YORK (AP) -- An insider trading case last year that federal authorities said was the biggest ever is providing a recipe for another case that may be even bigger.

The current case is largely an extension of work that led to the arrest of Galleon Group founder Raj Rajaratnam in October 2009. The Galleon investigation marked the first time that federal authorities used wiretaps in an insider trading probe.

Similarly, wiretaps led to the first arrest in the latest case. Don Ching Trang Chu, a consulting firm executive, was arrested Wednesday for allegedly providing private information about a company's corporate earnings to a hedge fund.

The FBI this week searched the offices of three hedge funds and subpoenaed some of Wall Street's most influential firms, including Janus Capital Group and SAC Capital.

Debt turmoil, contagion fears sweep Europe

LISBON, Portugal (AP) -- Europe struggled mightily Friday to keep the debt crisis from engulfing country after country. Portugal passed austerity measures to fend off the speculative trades pushing it toward a bailout and Ireland rushed to negotiate its own imminent rescue.

As Portugal and Spain insisted they will not seek outside help, creating an eery sense of deja vu for investors, Europe braced for what seems inevitable -- more expensive bailouts.

The Portuguese Parliament approved an unpopular debt-reducing package, including tax hikes and cuts in pay and welfare benefits. But while that helped to avoid a sharper deterioration in bond markets, the sense among analysts was that the move had only bought a little time.

Adding to the pressure, Ireland's major banks were hit with credit downgrades -- one to junk bond status -- as speculation mounted that the EU-IMF bailout of Ireland, to be revealed within days, would require investors to take losses, a possibility earlier denied by officials.

Stocks slide on worries over Korea, European debt

NEW YORK (AP) -- Stocks sank during Friday's shortened session as jittery traders were afraid to commit to any holdings ahead of the weekend amid lingering uncertainty surrounding Europe's debt troubles and North Korea's war threats.

European stock markets and the euro fell as worries mounted that Portugal will be the next country to need cash from other European Union countries, even as details of Ireland's bailout were being worked out.

On Friday, Portugal adopted a raft of debt-reducing austerity measures, which the government claimed would be enough to restore market confidence in its public finances without resorting to a bailout.

However, that didn't soothe traders who are also nervously eyeing North Korea's threat of war, which could destabilize its neighboring Asian nations.

GM IPO grows to $23B with overallotment exercise

DETROIT (AP) -- General Motors Co. said the underwriters in its recent initial public offering have exercised their over-allotment of an additional 71.7 million common shares, bringing the total size of the deal to $23.1 billion.

The additional shares were worth $2.37 billion. The underwriters also exercised the right to purchase an additional 13 million shares of mandatory convertible junior preferred stock from the Detroit automaker, for a total of $650 million.

The closing for the additional shares is expected on Dec. 2.

Fiat wants Chrysler joint venture at Turin plant

MILAN (AP) -- Fiat and Chrysler CEO Sergio Marchionne on Friday proposed a joint venture with Chrysler LLC to build Alfa Romeo and Jeep brand vehicles at Turin's Mirafiori auto plant.

But he said he needed union cooperation to make the factory more competitive.

The proposal marks the first significant step toward integration in Europe between the Italian and U.S. automakers since Fiat took control of Chrysler with a 20 percent stake in June 2009.

Honda, Nissan, Toyota post record China production

TOKYO (AP) -- Toyota Motor Corp., the world's No. 1 automaker whose reputation has been dented by massive recalls, reported a fall in global car production for October even as it and Japanese rivals Nissan and Honda produced a record number of vehicles in China.

Toyota, which makes the Prius hybrid, Corolla compact and Lexus luxury cars, said Friday that global output fell 12.5 percent in October to 687,660 vehicles. Its production in China of 62,124 vehicles last month was up 4.4 percent from the previous year and a record high for October.

Tokyo-based Honda Motor Co. produced 305,406 vehicles worldwide in October, up 1.4 percent from a year earlier and the 11th straight month of growth, driven by the popularity of the Fit subcompact and other models.

In China alone it made 55,507 vehicles, up 4.4 percent from the year before and a record for October.

Casinos struggle back from recession

NEW ORLEANS (AP) -- Amid a new reality -- casinos are not recession-proof -- gambling in Louisiana and Mississippi is staging a slow comeback from the economic meltdown of 2008, aggravated for a time by the Gulf of Mexico oil spill that chased away some tourists.

But at least for the rest of 2010 and into 2011, industry analysts expect many players to keep a tight grip on their wallets amid uncertain economic times -- and those who watch casinos are largely unwilling to predict when full recovery might come.

Japan iPhone craze attracts global app developers

TOKYO (AP) -- The iPhone's popularity in Japan is cracking open an industry long thought inaccessible to outsiders.

For years, the typical Japanese cell phone -- built to operate on a network hardly used anywhere else in the world -- has been stuffed with quirky games and other applications that cater to finicky local tastes.

Foreign developers of applications for phones didn't give the Japanese market a second thought because of its insularity. But that is changing as the iPhone, for which tens of thousands of applications have been created, dominates Japanese smart phone sales.

Everywhere one turns, on commuter trains and urban cafes, people are tapping away at their iPhone screens in a relatively rare Japanese embrace of technology that isn't homegrown.

By The Associated Press

The Dow Jones industrial average fell 95.28, or 0.9 percent, to 11,092. The S&P 500 index was down 8.95, or 0.8 percent, to 1,189.40. The Nasdaq composite index fell 8.56, or 0.3 percent, to 2,534.56.

Benchmark oil for January delivery fell 10 cents to $83.76 per barrel.

In other Nymex trading, heating oil fell was about flat a $2.32 a gallon.

Natural gas rose 1.1 cents to $4.399 per 1,000 cubic feet.

In London, Brent crude dropped 30 cents to $85.80 a barrel on the ICE Futures exchange.

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