AP
Business Highlights
Friday December 12, 6:01 pm ET

White House promises new last-ditch auto rescue

WASHINGTON (AP) -- With Congress gridlocked and the economy floundering, the Bush administration declared Friday it would step in to prevent the "precipitous collapse" of the U.S. auto industry and the disastrous loss of hundreds of thousands of jobs that would be sure to follow.

A day after the sudden demise of rescue legislation in Congress, General Motors officials were talking with the administration and the Federal Reserve about how carmakers could still get the billions of dollars they say they need to survive. The talks included conditions that automakers would have to meet, said GM spokesman Greg Martin.

Retail sales, wholesale prices fall again in November

WASHINGTON (AP) -- Consumers reduced their spending at retail stores again in November while the costs of goods before they reach store shelves also continued to drop, more bad signs in a recession that appears to be deepening.

Businesses also cut their inventories by the largest amount in five years, the government said Friday, a sign the recession will force further cuts in production.

Stocks advance amid hope for automaker rescue

NEW YORK (AP) -- Wall Street put on another impressive show of resilience Friday, rebounding from an early sell-off to end higher after the government said it would assist troubled U.S. automakers.

The market, which just a week earlier withstood a terrible November employment report, managed its advance after the Treasury Department said it was prepared to assist the nation's Big Three automakers. The Dow Jones industrial average had fallen more than 200 points in very early trading when it appeared that the Senate had killed a $14 billion bailout package for the companies.

The Dow rose 64.59, or 0.75 percent, to 8,629.68.

Oil sinks with fate of automakers unresolved

UNDATED (AP) -- Oil prices rallied from a sharp drop Friday as the president and the Treasury Department said they were prepared to act if needed to save the U.S. auto industry from collapse.

The price for a barrel of oil, however, finished lower on another round of poor economic news that showed consumers cutting back on spending for a record fifth straight month. Light, sweet crude fell $1.70 to settle at $46.28 on the New York Mercantile Exchange.

GM to temporarily close 20 plants to slash output

NEW YORK (AP) -- General Motors Corp. said Friday it will temporarily close 20 factories across North America and make sweeping cuts to its vehicle production as it tries to adjust to dramatically weaker automobile demand.

GM said it will cut 250,000 vehicles from its production schedule for the first quarter of 2009, which includes a cut of 60,000 vehicles announced last week. Normal production would be around 750,000 cars and trucks for the quarter, spokesman Tony Sapienza said.

SEC seeks to salvage assets of NY financier

NEW YORK (AP) -- The implosion of a Wall Street firm whose owner is accused in a $50 billion swindle left regulators scrambling to seize control of its assets Friday as dozens of investors worried that they had gone from rich to poor overnight.

The collapse of Bernard L. Madoff's company came just hours before his arrest Thursday on a single securities fraud count. Madoff, who allegedly told his employees he was running a "giant Ponzi scheme," was freed on $10 million bail.

Feds shut Georgia bank; BB&T acquires deposits

NEW YORK (AP) -- Regulators on Friday closed Haven Trust Bank, marking the 24th U.S. bank failure this year, and the fifth in Georgia.

The Federal Deposit Insurance Corp. was appointed receiver of the Duluth, Ga.-based bank, which had total assets of $572 million and deposits of $515 million as of Dec. 8.

The FDIC said BB&T Corp. has agreed to assume all of the bank's deposits, including those that exceeded the insurance limit, for $112,000. BB&T will also buy about $55 million of the failed bank's assets; the FDIC will retain the rest for later disposition.

Alcatel-Lucent to cut jobs as part of turnaround

PARIS (AP) -- Alcatel-Lucent said Friday it will eliminate another 1,000 white-collar jobs as part of its new chief's plan to return the company to profitability, but shares slumped as investors were hoping for a bolder shift in business strategy.

The Paris-based maker of networking equipment for fixed and mobile telecommunications operators also intends to get rid of half of the 10,000 contractors it employs in measures aimed at saving 750 million euros ($991 million) by the fourth quarter of 2009, the company said in a statement.

General Growth says still in debt talks

WASHINGTON (AP) -- Troubled mall owner General Growth Properties Inc., trying to stave off a bankruptcy filing, said it is still trying to negotiate an extension on $900 million in debt that is due to be repaid Friday, but warned there can be "no assurance" it will get a reprieve.

The mortgages cover two Las Vegas malls, Fashion Show and Palazzo. Earlier this month, Chicago-based General Growth received a two-week extension on the loans.

Siemens, Justice Department strike settlement deal

WASHINGTON (AP) -- Industrial conglomerate Siemens AG plans to plead guilty and pay at least $448.5 million in fines to settle long-standing corruption charges in the United States, according to court papers filed Friday.

The Justice Department has accused Siemens of making bribes and trying to falsify its corporate books from 2001 to 2007. It has also accused some of the conglomerate's subsidiaries of bribery, including paying kickbacks to the former Iraqi government to get some of the United Nations Oil-for Food contracts.

By The Associated Press

The Dow rose 64.59, or 0.75 percent, to 8,629.68.

The S&P 500 index rose 6.14, or 0.70 percent, to 879.73, and the Nasdaq rose 32.84, or 2.18 percent, to 1,540.72.

For the week, the Dow ended with a loss of fewer than 6 points, or 0.07 percent. The S&P 500 rose 0.42 percent, while the Nasdaq advanced 2.08 percent because of Friday's gains.

The Russell 2000 index of smaller companies rose 17.22, or 3.82 percent, to 468.43 Friday.

Light, sweet crude fell $1.70 to settle at $46.28 on the New York Mercantile Exchange.

In other Nymex trading, gasoline futures fell less than a penny to settle at $1.0777 a gallon. Heating oil dipped 1.3 cents to settle at $1.4934 a gallon and natural gas for January delivery lost 11 cents to settle at $5.488 per 1,000 cubic feet.

In London, January Brent crude fell 98 cents to settle at $46.41 a barrel on the ICE Futures exchange.