AP
Business Highlights
Friday December 19, 6:58 pm ET

Bush orders auto bailout; Obama completes naming cabinet

Bailout approved: Automakers to get $17.4B

WASHINGTON (AP) -- Citing imminent danger to the national economy, President Bush ordered an emergency bailout of the U.S. auto industry Friday, offering $17.4 billion in rescue loans to prevent the collapse of General Motors Corp. and Chrysler LLC. The agreement demanded tough concessions from the deeply troubled carmakers and their workers.

Detroit's Big Three cheered the action and vowed to rebuild their once-mighty industry, though they acknowledged the road would be anything but smooth as they fight their way back from the brink of bankruptcy.

Stocks end bumpy session relatively flat

NEW YORK (AP) -- Stock prices pared earlier gains to end a choppy day relatively flat on Friday, as Wall Street remained uncertain that a $17.4 billion lifeline for U.S. automakers will make a lasting difference for the beleaguered industry.

In the early going, investors cheered the government's pledge to provide General Motors and Chrysler with short-term financing and sent the Dow Jones industrial average up as much as 182 points. But stocks turned lower at midday, recovered in the afternoon, and then lost ground again in the last hour of trading as initial enthusiasm over the bailout waned.

The Dow fell 25.88, or 0.30 percent, to 8,579.11.

Paulson: Congress needs to release second $350B

WASHINGTON (AP) -- Treasury Secretary Henry Paulson said Friday that Congress will need to release the second half of the $700 billion rescue fund because the first $350 billion has been committed.

Paulson said the use of the rescue fund to provide loans to the auto industry along with all the other rescue efforts for the financial system meant that the administration has now basically allocated the first half of the largest government bailout program in history.

Madoff ordered to produce accounting by Dec. 31

NEW YORK (AP) -- Disgraced money manager Bernard Madoff has been ordered to provide a written list by the end of the year of his assets and liabilities, a key step in finding what is left for investors after authorities said Madoff admitted squandering at least $50 billion.

U.S. District Judge Louis L. Stanton signed an order late Thursday requiring the 70-year-old Madoff to provide a verified accounting of all his assets, liabilities and property to the Securities and Exchange Commission.

Glut of oil creates short-term storage problems

Traders locking up storage space for crude created a huge rift in prices Friday between oil that must be delivered in several weeks and oil that can be taken in February.

The January contract for crude expired Friday and with stockpiles rising at the key storage facility in Cushing, Okla., the price dropped close to a five-year low as brokers and traders attempted to unload supply for whatever price they could get.

Light, sweet crude for January delivery fell $2.35 cents to settle at $33.87 a barrel, a level last seen in early 2004.

Obama fills econ team, says business will revive

CHICAGO (AP) -- Completing his Cabinet a month before taking office, President-elect Barack Obama named officials to oversee transportation, labor, trade and small business policy Friday but warned that economic recovery won't be nearly as swift.

He noted his speed in putting his full economic team in place, saying he had done so at an earlier point than previous presidents because of the magnitude of the troubles the country faces.

Bush administration files trade case against China

WASHINGTON (AP) -- The Bush administration on Friday filed a trade case against China over its use of export subsidies to promote Chinese products.

U.S. Trade Representative Susan Schwab, in announcing the case, said China was violating global trade rules administered by the World Trade Organization in the way it operates a "famous brands" program to promote the sale of Chinese goods in other countries.

Japan central bank cuts key rate to 0.1 percent

TOKYO (AP) -- Japan's central bank cut its key interest rate to 0.1 percent on Friday, joining the U.S. Federal Reserve in lowering borrowing rates to nearly zero amid an ever-worsening outlook for the global economy.

The Bank of Japan also introduced new steps to thaw a growing credit crunch for companies.

The cut was widely expected and comes after the government earlier in the day lowered its economic forecast for the fiscal year through March to negative 0.8 percent from positive 1.3 percent.

CarMax swings to 3Q loss as sales fall

RICHMOND, Va. (AP) -- Auto retailer CarMax Inc. said Friday it swung to a $21.9 million loss in the third quarter due to slumping sales and store traffic, and loan loss write-downs in its auto finance arm.

The Richmond, Va.-based company says it lost 10 cents per share in the quarter that ended Nov. 30. The company reported earnings of $29.8 million, or 14 cents per share in the same quarter last year.

General Growth to sell retail centers in 3 cities

WASHINGTON (AP) -- A troubled mall operator is putting prominent retail centers in Boston, New York and Baltimore up for sale in a desperate attempt to shore up its finances.

Chicago-based General Growth Properties Inc. has hired a New York-based commercial real estate firm to put the well-known retail centers up for sale.

By The Associated Press

The Dow fell 25.88, or 0.30 percent, to 8,579.11.

The Standard & Poor's 500 index rose 2.60, or 0.29 percent, to 887.88, while the Nasdaq composite index rose 11.95, or 0.77 percent, to 1,564.32.

The Russell 2000 index of smaller companies rose 7.09, or 1.48 percent, to 486.26.

Light, sweet crude for January delivery fell $2.35 cents to settle at $33.87.

In other Nymex trading, gasoline futures rose less than a penny to settle at 96.93 cents a gallon. Heating oil gained nearly 2 cents to settle at $1.392 a gallon while natural gas for January tumbled 21.4 cents to settle at $5.334 per 1,000 cubic feet.