AP Business Highlights

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On Tuesday March 2, 2010, 5:57 pm EST

Toyota's pain is rivals' sales gain in February

DETROIT (AP) -- All major automakers but Toyota reported higher U.S. sales in February, and most took customers from their powerful Japanese competitor, which has been struggling with a series of massive safety recalls.

Toyota Motor Corp. said its U.S. sales fell 9 percent last month, while Ford, GM, Nissan, Honda and Hyundai all reported double-digit growth compared with February of 2009, at the depth of the recession.

The gains may have been even higher without the blizzards that paralyzed the East Coast.

Other winners included Kia Motors Corp. and Subaru. Even struggling Chrysler Group LLC saw improvement. Toyota, by contrast, suspended sales of eight popular models in late January. And it spent last week answering questions from Congress about its safety record.

More merger activity helps lift stocks for 3rd day

NEW YORK (AP) -- The stock market had its third straight winning day on signs that companies are becoming more optimistic about the economy.

The Dow Jones industrial average edged up 2 points to 10,405.98 Tuesday but closed off its best levels. The Dow had managed to erase its losses for the year during trading but was down 22 points for 2010 by the close. Broader indexes pushed into the black for the year on Monday and extended their gains Tuesday.

More merger activity and a plan by Qualcomm Inc. to buy back stock brought reassurance that business leaders expect the recovery to continue. The economy's health had been in doubt in recent months after reports indicated the pace of improvement was slowing and as countries including Greece struggled with heavy debt loads.

Talks on bank regs zero in on consumer protections

WASHINGTON (AP) -- More than a year after Lehman Brothers' collapse set off a financial panic, Senate negotiators are laboring to seal a deal over a consumer protection dispute holding up broad legislation to establish new rules for Wall Street.

At issue is whether a government consumer watchdog should be free from bank regulators to write rules that govern everything from credit card and overdraft fees to payday loans and mortgages.

Key negotiators in the Senate Banking Committee are closing in on an agreement that would house a government consumer entity inside the Federal Reserve but give it autonomous power to write regulations, three people familiar with the talks told the Associated Press. The sources spoke on the condition on anonymity because they were not authorized to discuss the evolving talks publicly.

Greek PM says more painful spending cuts needed

ATHENS, Greece (AP) -- Prime Minister George Papandreou called on Greeks to brace for more painful spending cuts to deal with an unprecedented financial crisis, saying their sacrifices were essential to national survival.

In a dramatic speech Tuesday to his Socialist party's deputies in Parliament, Papandreou said time was running out to pull the country out of the crisis. His government is to announce further spending cuts on Wednesday -- likely to include more tax hikes and deeper reductions in civil servants' pay.

The cuts are aimed at reducing the deficit, winning firm backing from the European Union and convincing bond investors that Greece is creditworthy so they will keep lending.

Feds weighing brake overrides in all new cars

WASHINGTON (AP) -- Transportation Secretary Ray LaHood said Tuesday his agency may recommend that every new vehicle sold in the U.S. be equipped with brakes that can override the gas pedal. The idea seemed to be gaining support among lawmakers as Toyota officials returned for a third congressional hearing on lethal safety defects.

LaHood's testimony came as federal safety officials increased to 52 the number of reported deaths linked to sudden acceleration in Toyota vehicles, through the end of last month. Previously, 34 deaths were blamed on the problem.

Toyota Motor Corp. and federal regulators both faced renewed questions Tuesday from Congress over the giant Japanese car company's troubled safety record.

Domino's profit more than doubles on new recipes

ANN ARBOR, Mich. (AP) -- Revamped pizza and a frank advertising campaign helped Domino's Pizza Inc. more than double its fourth-quarter profit as curious customers tried out its new recipe, the delivery chain said Tuesday.

Executives have said that the chain decided to start overhauling its recipes more than 18 months ago after mounting criticism from focus groups and on social media sites. And it boldly admitted in a series of documentary-style spots that under its old recipe, customers complained its crust tasted like cardboard and its sauce was reminiscent of ketchup.

The company began promoting its new pie, which has a new sauce and cheese combination and herb- and garlic-flavored crust, in December. That helped the company's profit climb to $23.6 million, or 41 cents per share, for the three months that ended Jan. 3.

Postal Service's emerging model: Never on Saturday

WASHINGTON (AP) -- The post office is renewing its drive to drop Saturday delivery -- and plans a rate increase -- in an effort to fend off a projected $7 billion loss this year.

Without drastic action the agency could face a cumulative loss of $238 billion over 10 years, Postmaster General John Potter said in releasing a series of consultant reports on agency operations and its outlook.

Sen. Tom Carper, D-Del., chairman of the Senate subcommittee with oversight authority over the Postal Service, called on Congress to give the post office the flexibility to deal with its future needs.

Frederic V. Rolando, president of the National Association of Letter Carriers, also urged Congress to provide the post office with "financial breathing room," but he opposed eliminating one day of delivery.

Apple sues rival HTC as phone competition rises

SAN FRANCISCO (AP) -- As Apple Inc.'s iPhone faces stiffer competition in the lucrative market for smart phones, the company is going after one of its main rivals with patent lawsuits claiming theft of touch screen technology and other features.

The complaints cover a slew of models made by Taiwanese phone maker HTC Corp., including the Nexus One, G1 and myTouch 3G -- all using the free, rival Android mobile operating software from Google Inc. Non-Android phones include HTC's Touch series.

But consumers shouldn't worry about buying or using any of those phones. Patent cases can take months or years to resolve -- sometimes longer than the life of these phones -- and agreements over licensing and royalty payments often emerge.

AstraZeneca shuffles, eliminates Del. R&D jobs

DOVER, Del. (AP) -- Pharmaceutical company AstraZeneca PLC said Tuesday that it is reorganizing its global research and development operations and eliminating about 1,800 R&D jobs as part of a previously announced cost-cutting plan.

About 550 jobs will be eliminated at AstraZeneca's U.S. headquarters in Delaware as it moves primary research and development elsewhere, the London-based company said.

AstraZeneca also said it will close research sites in the United Kingdom and Sweden, and that about 3,500 R&D jobs will be affected as part of a plan announced in January to cut 8,000 jobs, or 12 percent of its work force, by 2014.

Crude bounces back, climbing near $81 a barrel

Oil prices rose close to $81 a barrel on Tuesday, climbing at a time of the year when crude and gasoline prices typically move higher.

Benchmark crude for April delivery rose 98 cents to settle at $79.68 a barrel on the New York Mercantile Exchange. It went as high as $80.95 earlier in the day.

Wholesale gasoline prices also increased. The April contract gained 4.10 cents to settle at $2.1966 per gallon on the Nymex.

Oil prices have been drifting between $70 and $80 a barrel for most of the last eight months as crude demand remains weak in the U.S. and other industrial countries coming out of the Great Recession.

By The Associated Press

Stock prices... The Dow industrial average

Commodities.

 

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