Growth likely slowing after big
year-end spurt WASHINGTON (AP) -- The economy is now
likely expanding at just half the brisk 5.9 percent pace at which the
government on Friday estimated it grew last quarter. Business spending will
make up for some of a slowdown in consumer spending -- but not likely enough to
reduce the jobless rate much. In a fresh reading on the nation's
economic standing, the Commerce Department bumped up its growth estimate for
the final quarter of 2009, from a 5.7 percent growth rate estimated a month
ago. It was the strongest showing in six years. Roughly two-thirds of the growth came
from a burst of manufacturing -- but not because consumer demand was especially
strong. In fact, consumer spending weakened at the end of the year, even more
than the government first thought. Housing market shows weakness for 2nd
month WASHINGTON (AP) -- Sales of previously
owned homes plunged in January to their lowest level since summer, evidence
that high unemployment and tight lending standards are undercutting the
government's attempts to prop up the market. The results Friday, the weakest since
June, were far worse than forecast and suggest the housing recovery will
sputter without government support. The government has spent billions to keep
mortgage rates low and give buyers tax breaks, but both programs are set to end
this spring. The AIG narrows 4Q loss, continues
restructuring CHARLOTTE, N.C. (AP) -- AIG said Friday
it lost $8.87 billion in the fourth quarter as its general insurance business
remained weak and the company ran up expenses from paying back government
loans. The troubled insurer also said in an
annual regulatory filing that it may need additional support from the
government. However, AIG has included such warnings in past filings with the
Securities and Exchange Commission. The fourth-quarter results were an
improvement from the $61.7 billion AIG lost in the year ago period, but they
were worse than analysts expected. They also followed two straight profitable
quarters. Stocks edge higher after mixed economic
news NEW YORK (AP) -- The stock market eked
out a gain Friday as investors took downbeat economic news in stride. The modest gains still left stocks with
a loss for the week but the Dow Jones industrial average and the Standard &
Poor's 500 index logged their best month since November. The mixed reports added to investors'
confusion about the economy. Analysts are divided over whether a recovery is on
track, leading to swings in the stock market after nearly a year of huge gains. The Dow rose 4.23, or less than 0.1
percent, to 10,325.26. Lawmaker: WASHINGTON (AP) -- A In a letter to WASHINGTON (AP) -- The cost of
stabilizing the housing market continues to grow, as The mortgage finance company, seized by
federal regulators in During the most recent quarter,
Washington-based Fannie suffered $11.9 billion in credit losses and a $5
billion write-down for low income tax credit investments. China still biggest foreign buyer of US
securities WASHINGTON (AP) -- The government now
says that China did not lose its place in December as the largest foreign
holder of U.S. Treasury debt. The Treasury Department said that under
annual benchmark revisions released Friday, China's holdings of U.S. Treasury
securities stood at $894.8 billion at the end of December, keeping it in first
place ahead of On Feb. 16, the government reported
data that showed China had been surpassed by Oil settles near $80 a barrel again NEW YORK (AP) -- Oil prices hit $80 a
barrel Friday to end a wild trading week that saw prices swing in the opposite
direction every day. Crude barrels have wavered between $70
and $80 all year, and the latest batch of economic reports failed to give a
clear picture of when energy demand in the U.S. would pick up. The And gasoline contracts slid this week
as a refinery strike ended in France. The U.S., which imports much of its fuel
from Europe, still has larger-than-average supplies of both motor gasoline and
distillate fuels like diesel. Lee to buy CKE Restaurants for $619M
and debt CHICAGO (AP) -- A private equity firm
said Friday it will buy the owner of the Carl's Jr. and Hardee's restaurants
for about $619 million in cash. Thomas H. Lee Partners, a Boston firm
that's among a trio of investment firms that bought Dunkin' Brands Inc. in
2006, has made the deal to buy CKE Restaurants Inc. at a time when the
fast-food chains' sales are falling and fewer diners are visiting their
restaurants. Lee Partners also will assume about
$309 million in debt from CKE. Under terms of the deal, CKE
shareholders will receive $11.05 in cash for each share they own -- a Zedillo named to NEW YORK (AP) -- The company said Friday that C. Michael
Armstrong, former AT&T CEO, and Xerox CEO Anne M. Mulcahy will not stand
for re-election. The bank has already announced that
John M. Deutch will not be stand for election at the April annual shareholder
meeting Zedillo, 58, is currently the director
of the Yale Center for the Study of Globalization. He was president of By The Associated Press The Dow rose 4.23, or less than 0.1
percent, to 10,325.26. The broader Benchmark crude for April delivery
added $1.49 to settle at $79.66 a barrel on the New York Mercantile Exchange.
Prices reached as high as $80.05 a barrel earlier in the day. In other Nymex trading, heating oil for
March delivery added 3.87 cents to settle at $2.0249 a gallon, while gasoline
for March delivery rose 4.18 cents to settle at $2.0788 a gallon. Natural gas
for April delivery gained 4.6 cents to settle at $4.813 per 1,000 cubic feet. In London, Brent crude rose $1.30 to
settle at $77.59 on the ICE futures exchange.