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On Monday December 6, 2010, 6:12 pm EST

Google opens e-book store in challenge to Amazon

SAN FRANCISCO (AP) -- Google Inc. is making the leap from digital librarian to merchant in a challenge to Amazon.com Inc. and its Kindle electronic reader.

The long-awaited Internet book store, which opened Monday in the U.S., draws upon a portion of the 15 million printed books that Google has scanned into its computers during the past six years.

About 4,000 publishers, including CBS Corp.'s Simon & Schuster Inc., Random House Inc. and Pearson PLC's Penguin Group, are also allowing Google to carry many of their recently released books in the new store.

Ackman says he would finance Barnes & Noble bid

NEW YORK (AP) -- Buying out Barnes & Noble would give its much smaller rival, Borders Group, a bigger and firmer stake in the digital world, but some analysts said combining the two largest companies in the shrinking realm of traditional book selling could hurt both -- perhaps irreparably.

Activist investor William Ackman and his investment firm announced in a regulatory filing Monday that they had offered to finance a $963 million bid by Borders for Barnes & Noble Inc.

Both book sellers face increasingly tough competition from much bigger merchants online and in stores, including Amazon.com, Target Corp. and Wal-Mart Stores Inc. And both have said they are relying for growth on electronic books and readers, a still-small arena where another giant, Google Inc., launched its own bookstore Monday.

Read takes over a Pfizer facing many difficulties

NEW YORK (AP) -- Pfizer Inc. may be the world's biggest drugmaker, but new CEO Ian Read is taking charge at a trying time for the company, and he will have to deal with a declining share price, repeated failures of potential new products and expirations of patents on key drugs.

Pfizer said Sunday that Read is replacing Jeffrey Kindler, who was Pfizer's CEO for more than four years. Read, 57, has worked at Pfizer for more than 30 years in a variety of positions and countries.

While Kindler's exit came as a surprise, analysts said the choice of Read indicates big changes are not immediately in store for the company.

Democrats meet with Obama over tax cuts deal

WASHINGTON (AP) -- President Barack Obama and Democratic lawmakers weighed a temporary cut in Social Security taxes, eager to get a year-end agreement with Republicans to extend expiring income tax cuts to all Americans and renew jobless benefits for the long-term unemployed.

Officials familiar with the discussions said the plan would reduce the payroll tax for workers from the current 6.2 percent to 4.2 percent. The proposal would replace a tax credit for middle- and low-income workers that ends Dec. 31.

Extending that tax credit was one of the provisions that the White House had wanted in any deal struck with the GOP. But a cut in payroll taxes is expected to put more money in workers pockets.

Court to look at huge Wal-Mart sex bias lawsuit

WASHINGTON (AP) -- The Supreme Court will consider whether to keep alive the largest job discrimination case in U.S. history, a lawsuit against Wal-Mart that grew from a half-dozen women to a class action that could involve billions of dollars for more than a half million female workers.

Wal-Mart is trying to halt the lawsuit, with the backing of many other big companies concerned about rules for class-action cases -- those in which people with similar interests increase their leverage by joining in a single claim.

Class actions against discount seller Costco and the tobacco industry are among pending claims that the high court's decision might alter.

'Operation Broken Trust' targets financial fraud

WASHINGTON (AP) -- A nationwide law enforcement crackdown targeting financial fraud has led to cases against 343 criminal defendants involving $8.3 billion in estimated losses, Attorney General Eric Holder announced Monday.

"Operation Broken Trust" is the first national effort of its kind aimed at a broad array of investment fraud schemes. The 3 1/2-month campaign was organized by the Obama administration's Financial Fraud Enforcement Task Force.

The schemes that were uncovered highlight "the pervasiveness of the threat," Shawn Henry, the FBI's executive assistant director, told a news conference.

Eurozone says bailout funds enough, for now

BRUSSELS (AP) -- Top European officials insist that they have enough financial firepower to deal with Europe's debt crisis -- but did not rule out increasing Europe's bailout fund in the future.

Jean-Claude Juncker, who chaired a meeting of the eurozone's 16 finance ministers, said Monday that there wasn't any immediate need to increase the euro750 ($1 trillion) financial backstop. The fund is for eurozone governments in danger of running out of money.

That's despite this year's bailouts of both Greece and Ireland, and fears that Portugal and Spain will need a financial lifeline too.

Caution from Bernanke sends stock indexes lower

NEW YORK (AP) -- Stocks spent most of Monday in a funk brought on by cautious comments about the economy from Federal Reserve Chairman Ben Bernanke. Hopes for a compromise on extending Bush-era tax cuts and unemployment benefits erased some of the losses.

The Dow Jones industrial average ended down 20 points, breaking a three-day winning streak from last week. Stock indexes traded in a tight range all day and volume was light.

Stocks began the day on a sour note after Federal Reserve Chairman Ben Bernanke said the economic recovery is still struggling to become "self-sustaining" without government help.

Sprint to start phasing out Nextel network in 2013

NEW YORK (AP) -- Sprint Nextel Corp. said it will start phasing out the Nextel part of its network in 2013, a decision that follows near-constant subscriber losses since Sprint bought Nextel in 2005.

The shutdown should be complete in 2015. Sprint, the country's third-largest wireless carrier, had said it would eventually shut down the aging Nextel network, but hadn't said when until Monday.

Nextel's signature feature is its fast push-to-talk function, which resembles a walkie-talkie. It once made Nextel popular with outdoor workers such as construction crews. However, the network doesn't support fast data transfers, making it unsuitable for smart phones. Sprint plans to offer Nextel subscribers a push-to-talk function on the Sprint network instead.

Gov't plans to sell 2.4B shares of Citigroup stock

WASHINGTON (AP) (AP) -- The government said it will sell its remaining shares of Citigroup common stock in the latest effort to recoup costs from the $700 billion financial bailout.

The Treasury Department said Monday that it will sell approximately 2.4 billion shares of Citigroup Inc. common stock. The sale would begin immediately and would end when the government determined that it had received an acceptable price for the shares.

Citigroup received $45 billion in taxpayer support in one of the largest bank rescues by the government.

By The Associated Press

The Dow Jones industrial average fell 19.90, or 0.2 percent, to close at 11,362.19. The index had been down as many as 32 points earlier in the day.

Last week, strong reports on home sales, retail spending and consumer confidence lifted the Dow 2.6 percent, its best weekly gain since hitting a 2010 high on Nov. 5. The Dow is up 8.9 percent for the year.

The broader Standard & Poor's 500 index lost 1.59, or 0.1 percent, to 1,223.12. The Nasdaq composite index rose 3.46, or 0.1 percent, at 2,594.92.

Oil prices are at the highest levels since October 2008. The two-week advance continued on Monday as benchmark oil for January delivery rose 19 cents to settle at $88.96 a barrel on the New York Mercantile Exchange.

In other Nymex trading in January contracts, heating oil lost 1.17 cents to settle at $2.4757 a gallon, gasoline fell 1.04 cents to settle at $2.3417 a gallon and natural gas rose 13.9 cents to settle at $4.488 per 1,000 cubic feet.

In London, Brent crude added 3 cents to settle at $91.45 a barrel on the ICE futures exchange.

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