AP
Business Highlights
Wednesday December 17, 6:48 pm ET

DETROIT (AP) -- Chrysler LLC is closing all 30 of its manufacturing plants for a month starting Friday as it seeks to counter the most severe downturn in U.S. auto sales in more than two decades.

By extending the traditional two-week holiday shutdown period, the struggling Auburn Hills, Mich.-based automaker can adjust production to slowing demand and conserve cash.

Meanwhile Ford says it will shut down 10 of its North American assembly plants for an extra week in January. The normal two-week holiday shutdown will be extended to Jan. 12 at all operating assembly plants except those in Claycomo, Mo., near Kansas City and the Dearborn, Mich., truck plant.

General Motors is halting construction of a plant tied to one of its most important projects, the Volt.

OPEC cuts record 2.2 million barrels a day

ORAN, Algeria (AP) -- OPEC on Wednesday agreed to slash 2.2 million barrels from its daily production -- its single largest cut ever -- while bloc outsiders Russia and Azerbaijan announced their own cutbacks of hundreds of thousands of barrels from the market.

Crude oil sank below $40 after the announcement to levels not seen since the summer of 2004 and a clear sign investors are more worried that the world is heading for a long and painful recession in which energy use will continue to erode.

Making matters worse for OPEC, Moscow distanced itself from direct ties with the 13-nation producers' group, further dampening OPEC hopes of coordinated production cuts that might put a floor under crude prices.

AG takes himself out of Madoff fraud probe

WASHINGTON (AP) -- The fraud investigation of Wall Street money manager Bernard L. Madoff took unusual twists Wednesday as the U.S. attorney general removed himself and the Securities and Exchange Commission looked into the relationship between Madoff's niece and a former SEC attorney who reviewed Madoff's business.

The developments reflect growing criticism that Wall Street and regulators in Washington have grown too close. Madoff himself has boasted of his ties to the SEC.

The question of Madoff's connection to regulators goes to the heart of the investigation of the alleged $50 billion fraud, SEC Chairman Christopher Cox told reporters.

Morgan Stanley loses $2.37 billion in fiscal 4Q

NEW YORK (AP) -- Morgan Stanley said Wednesday it lost $2.37 billion during its fiscal fourth quarter as it took a range of losses on assets amid one of the roughest quarters for investment banks.

The New York-based firm, which is aggressively building on its new status as a bank holding company, lost $2.34 per share for the quarter ended Nov. 30. It lost $3.61 billion, or $3.61 per share, during the year-ago period when it took a $9.4 billion write-down on mortgage-related assets as the housing crisis began to spiral downward.

Stocks finish lower as investors assess rate cut

NEW YORK (AP) -- Wall Street finished moderately lower Wednesday, as further signs of economic deterioration dampened investors' earlier enthusiasm about the Federal Reserve's record interest rate cut.

Some selling had been expected after Tuesday's huge rally in which the Dow Jones industrial average rose more than 4 percent and other indexes gained more than 5 percent. The moves came after the central bank lowered its federal funds rate target to a range of zero to 0.25 percent -- the lowest levels on record.

But after briefly moving into positive territory, stocks struggled to hold on to the big gains logged the day before as investors grappled with signs of a worsening economy, including more layoffs and plunging oil prices, and the magnitude of the Fed's actions. The Dow Jones industrial average fell 99.80, or 1.12 percent, to 8,824.34.

Constellation calls off deal with Buffett unit

COLUMBUS, Ohio (AP) -- Constellation Energy said Wednesday it will sell half of its nuclear power business to French state-controlled nuclear power provider EdF for $4.5 billion, scuttling a $4.7 billion offer from a unit of Warren Buffett's Berkshire Hathaway Inc. for all of the company.

Baltimore-based Constellation Energy Group Inc. had agreed to the $26.50-per-share bid by Buffett's MidAmerican Energy Holdings Co. of Des Moines, Iowa, back in September. The deal, which included a much-needed $1 billion capital infusion, came after Constellation's shares plummeted amid liquidity concerns that had analysts worried the nation's largest wholesale power generator would go out of business.

Broadest measure of US trade deficit falls in 3Q

WASHINGTON (AP) -- The deficit in the broadest measure of American trade fell more than expected in the third quarter and the declines are likely to intensify as the U.S. recession and falling oil prices sharply narrow the trade gap.

U.S. exporters, however, will face a tough time selling their products overseas as America's economic woes spread around the globe.

The current account trade deficit fell by 3.7 percent to $174.1 billion in the July-September quarter, the Commerce Department reported Wednesday. That was better than the $178.8 billion deficit that economists expected.

Nike shares rise on strong sales overseas

BEAVERTON, Ore. (AP) -- Shoe and apparel company Nike Inc. said Wednesday that, despite weak domestic sales, its profit grew 9 percent in the second-quarter on strong sales overseas.

The Beaverton, Ore.-based company reported its net income rose to $391 million, or 80 cents per share, compared with net income of $359.4 million, or 71 cents per share in the same quarter last year. The company said its total revenue grew 6 percent to $4.6 billion, from $4.3 billion last year. Changes in currency exchange rates boosted revenue by 1 percentage point for the quarter.

Motorola to freeze pension plans, cut exec pay

SCHAUMBURG, Ill. (AP) -- Motorola Inc., which has been struggling to revive its business in recent years, is freezing its pension plans and reducing executive pay in another set of cost-cutting measures.

The company, which blamed the recession for the moves disclosed Wednesday, will permanently freeze its U.S. pension plans, temporarily suspend matching 401(k) contributions and reduce the base salary of its two co-chief executives. Motorola had already announced an $800 million cost-saving plan in October, but spokeswoman Jennifer Erickson would not elaborate on how much additional money the company expects to save with the latest steps.

By The Associated Press

The Dow Jones industrial average fell 99.80, or 1.12 percent, to 8,824.34.

The Standard & Poor's 500 index slipped 8.76, or 0.96 percent, to 904.42, and the Nasdaq composite index fell 10.58, or 0.67 percent, to 1,579.31.

The Russell 2000 index of smaller companies was up 3.74, or 0.77 percent, to 486.59.

Light, sweet crude for January delivery tumbled 8 percent, or $3.54, to settle at $40.06 on the New York Mercantile Exchange.

In London, February Brent crude rose 97 cents to settle at $45.53 a barrel on the ICE Futures exchange.

In other Nymex trading, gasoline futures fell 3.45 cents to settle at $1.0055 a gallon. Heating oil fell 1.77 cents to $1.4425 a gallon while natural gas for January delivery fell 15.2 cents to settle at $5.619 per 1,000 cubic feet.