AP Business Highlights

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Companies:

Toyota seeks damage control, in public and private

WASHINGTON (AP) -- In public, Toyota is running apologetic TV ads and vowing to win back customers' trust. Behind the scenes, the besieged carmaker is trying to learn all it can about congressional investigations, maybe even steer them if it can.

It's part of an all-out drive by the world's biggest auto manufacturer to redeem its once unassailable brand -- hit anew on Tuesday as Toyota's global recall ballooned to 8.5 million cars and trucks. The day's safety recall of 440,000 of its flagship Prius and other hybrids, plus a Tokyo news conference where the company's president read a statement in English pledging to "regain the confidence of our customers," underscored a determination to keep buyers' faith from sinking to unrecoverable depths.

In Washington, facing congressional inquiries and government investigations, Toyota through its lawyers and lobbyists is working full-speed to salvage its reputation.

EU nations' reality: Greece's woes are theirs, too

BRUSSELS (AP) -- Wealthy European nations were moving closer toward swallowing a bitter pill Tuesday: rescuing Greece from its own overspending to stop its debt crisis from dragging down the euro and stock markets all the way to Wall Street.

Stocks in the U.S. and Europe rose on expectations of some kind of decisive action to stem fears of a Greek debt default from spreading to other countries, undermining Europe's hesitant economic recovery.

European Union leaders will issue a statement on Greece's debt crisis during a Thursday meeting, officials said Tuesday -- without giving details of what it would say -- as the European Central Bank's president Jean-Claude Trichet joins them for talks in Brussels.

Stocks jump on hopes for Greece debt assistance

NEW YORK (AP) -- The Dow Jones industrial average jumped back above 10,000 on hope that the European Union will help Greece manage its growing debt burden.

The Dow rose 150 points Tuesday, a day after closing below 10,000 for the first time in three months. The major indexes all gained more than 1 percent.

Global markets bounced back on reports that European Central Bank President Jean-Claude Trichet is changing his travel schedule to attend a meeting of EU officials on Thursday and that plans are being developed to rescue Greece. The reports are raising hopes that policymakers will take bigger steps to contain troubles in Greece. The county is struggling with big budget gaps and is seeing demand fall for its debt.

Disney posts flat 1Q profit, beating estimates

LOS ANGELES (AP) -- The Walt Disney Co. said Tuesday it made $844 million in the holiday quarter, roughly flat compared with a year earlier, as restructuring charges offset cost cutting and gains at ESPN and the Disney Channel.

The advertising recovery had an uneven effect at Disney, with ESPN and Disney Channel benefiting from higher ad revenues, but the ABC broadcast network suffering from lower ratings and advertising prices. ABC nevertheless benefited from sales of "Criminal Minds" to other networks for reruns and in international markets.

Disney, which is based in Burbank, Calif., is closely tethered to consumer confidence because spending on its theme parks, stores and movies is a good barometer of how freely people are spending their extra cash.

Strong overseas sales put fizz in Coca-Cola's 4Q

NEW YORK (AP) -- International sales again added fizz to Coca-Cola's fourth quarter, while sales in North America softened, to lift profit 55 percent in the last three months of the year.

Although the economy appears to be slowly improving, the CEO of the world's largest beverage maker said Tuesday he expects 2010 to be another difficult year.

CEO Muhtar Kent said people are no longer worried about how deep the recession will be, but sales could still be volatile in the next year as they wait to see job prospects improve.

The Atlanta beverage maker sold 5 percent more beverages worldwide in its fourth quarter.

Google's e-mail gets social in Facebook face-off

MOUNTAIN VIEW, Calif. (AP) -- Google is making it easier to socialize on its e-mail service. It's unveiling a new "Google Buzz" feature that sets up a face-off with Facebook.

The feature unveiled Tuesday will enable Gmail users to create status updates on Google Buzz and read and comment on the updates posted by their friends.

Other tools turn Gmail into a showcase for sharing video, pictures and Web links to interesting stories, just as users can on Facebook and Twitter.

Gmail's new twists are a direct response to Facebook's rapid rise since it started six years ago.

Paulson says nation may profit from bank bailout

OMAHA, Neb. (AP) -- Henry Paulson, the former Treasury chief, and billionaire Warren Buffett said taxpayers will recover every cent paid out to banks during the economic meltdown and may even turn a profit.

The staunch Democrat investor and the Treasury secretary under President George W. Bush spoke onstage Tuesday before 2,400 at the Greater Omaha Chamber of Commerce's annual meeting.

Paulson in his recently released book defended the government, which scrambled to prevent failing U.S. banks from dragging down the global economy with them.

FDA aims to rein in radiation-based medical scans

WASHINGTON (AP) -- Federal regulators will require manufacturers of high-grade medical imaging machines to include safety controls that prevent patients from receiving excessive radiation doses.

The proposal announced Tuesday is part of a multipronged effort to address reports of acute injuries as well as reduce lifetime exposure to radiation, which has nearly doubled since 1980.

The Food and Drug Administration push will focus on high-tech machines such as CT scanners, which allow doctors to make lifesaving diagnoses, but also expose patients to high doses of cancer-causing radiation.

Japan Airlines rejects Delta, stays with American

TOKYO (AP) -- Japan Airlines, wooed for months by Delta Air Lines with promises of cash and global reach, spurned the world's biggest carrier and opted to keep its alliance with American Airlines.

The Japanese carrier said Tuesday it will strengthen its partnership with American. The two airlines will jointly seek government approval to work closer together to coordinate schedules on trans-Pacific flights, share revenue and carry each other's passengers -- all moves that can boost profits.

The decision brings to an end a fierce tug-of-war over Japan's ailing flagship carrier, which is restructuring under bankruptcy.

Senate Democrats unveil jobs package

WASHINGTON (AP) -- Senate Democrats circulated a jobs bill Tuesday that's light on new initiatives on boosting hiring and heavy with provisions sought by lobbyists for business groups, doctors and the satellite broadcasting industry.

Senate Democrats were working to round up Republican support, hoping to hand President Barack Obama a badly needed political victory before Congress breaks for Presidents Day next week.

The 362-page measure has very few new ideas for creating jobs, other than a $10 billion plan to exempt companies from paying the employer's share of Social Security payroll taxes for new hires if they are unemployed and hired this year.

New indictment boosts charges vs. Raj Rajaratnam

NEW YORK (AP) -- A new indictment has boosted criminal insider trading charges against one of America's richest men in what New York authorities have described as history's largest hedge fund insider trading case.

The indictment brought by federal prosecutors in Manhattan was made public Tuesday.

The new charges bring allegations against hedge fund operator Raj Rajaratnam that are based on claims by some defendants who have pleaded guilty in the case.

By The Associated Press

The Dow Jones industrial average rose 150.25, or 1.5 percent, to 10,058.64, its steepest percentage gain since Nov. 9. The broader Standard & Poor's 500 index rose 13.78, or 1.3 percent, to 1,070.52, while the Nasdaq composite index rose 24.82, or 1.2 percent, to 2,150.87.

Wholesale heating oil prices rose 5.18 cents to settle at $1.9373 per gallon on the New York Mercantile Exchange Tuesday as the second powerful storm in four days threatened to dump more than a foot of snow on the East Coast.

In other Nymex trading, natural gas prices fell 11.1 cents per 1,000 cubic feet to settle at $5.290 on the Nymex. Benchmark crude for March delivery jumped $1.86 to settle at $73.75 a barrel. Gasoline added 3.5 cents at settle at $1.9290 a gallon. In London, Brent crude gained $2.02 to settle at $72.13 on the ICE futures exchange.

 

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