AP Business Highlights

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On Tuesday March 9, 2010, 6:13 pm EST

Feds to probe cause of runaway Prius in California

EL CAJON, Calif. (AP) -- A Toyota Prius that sped out of control on a California freeway was towed to a dealership Tuesday while federal and company inspectors converged on the car to determine whether a stuck gas pedal was to blame.

The National Highway Traffic Safety Administration sent two investigators to examine the car after Monday's incident, said Olivia Alair, a spokeswoman for the Department of Transportation, which oversees NHTSA. Toyota Motor Corp. spokesman Brian Lyons said the automaker is sending three of its own technicians to investigate.

James Sikes, 61, of Jacumba, told authorities that the accelerator malfunctioned Monday as he drove his Prius on Interstate 8 in San Diego County. The car reached 94 mph during the 20 minutes before a California Highway Patrol officer helped get the Prius driver to slow down and turn off the engine.

Job openings up sharply in January to 2.7M

WASHINGTON (AP) -- Job openings rose sharply earlier this year, evidence that employers are slowly ramping up hiring as the economy improves.

The number of openings in January rose about 7.6 percent, to 2.7 million, compared with December, the Labor Department said. That's the highest total since February 2009.

The report is a sign that the economy is soon likely to generate consistent job gains. Some economists expect employers to add up to a net 300,000 jobs in March, though as many as a third of them could be temporary hiring for the 2010 Census.

Stock investors ask: What's the next big thing?

NEW YORK (AP) -- A year after the stock market began its comeback from 12-year lows, investors are looking for the next big thing.

Stocks have lost some of the momentum that propelled the Dow Jones industrial average up 61.4 percent from its close of 6,547 on March 9, 2009. That's natural -- bull markets tend to slow down as they head into their second year. But the lethargic pace of the economic recovery has also been a bit of a drag on stocks. And so investors are waiting for signs that the economy is ready to put up some solid, sustainable growth numbers.

The Dow on Tuesday rose 11.86, or 0.1 percent, to 10,564.38. The Dow remains 25 percent below its peak of 14,164.53, reached in October 2007.

Class-action lawsuits could cost Toyota $3B-plus

MIAMI (AP) -- Toyota owners claiming that massive safety recalls are causing the value of their vehicles to plummet have filed at least 89 class-action lawsuits that could cost the Japanese auto giant $3 billion or more, according to an Associated Press review of cases, legal precedent and interviews with experts.

Those estimates do not include potential payouts for wrongful death and injury lawsuits, which could reach in the tens of millions each. Still, the sheer volume of cases involving U.S. Toyota owners claiming lost value -- 6 million or more -- could prove far more costly, adding up to losses in the billions for the automaker.

Chevron to shed 2,000 jobs, sell some assets

Chevron Corp. said Tuesday it will cut 2,000 jobs this year and sell some overseas operations as it revamps its struggling refinery, marketing and transportation operations.

The job cuts represent almost 12 percent of its 17,000 workers in the so-called downstream part of its business and just over 3 percent of its overall work force.

Executives of the second-largest U.S. oil producer are still deciding where and when they will eliminate the jobs as they try to complete the restructuring by the third quarter, company spokesman Lloyd Avram said. Additional cuts are expected next year.

Chevron said it will also seek bids for the Pembroke refinery in southwest Wales, and fuels marketing, aviation and lubricants businesses in the Caribbean and some markets in Central America.

Kroger 4Q profit falls 27 percent; margins shrink

CINCINNATI (AP) -- The Kroger Co. is sacrificing some profits to court financially strapped shoppers who are buying more groceries at lower prices, counting on them to keep coming back when better economic days finally arrive.

The nation's largest traditional grocery chain Tuesday reported earnings fell 27 percent in its fourth quarter, while sales rose 7 percent with help from gasoline sales that were boosted by discount incentives for regular customers.

Kroger reported fourth-quarter profit of $255.4 million, or 39 cents per share, down from $349.2 million or 53 cents, a year ago. Sales were $18.6 billion. Analysts surveyed by Thomson Reuters expected 34 cents per share on $17.73 billion of revenue.

EU urges US to join in action against speculators

BRUSSELS (AP) -- European officials urged the U.S. to join in a crackdown on speculators who bet against Europe's currency union, warning they might ban some credit default swaps -- opaque financial instruments blamed for worsening the world financial crisis.

German Chancellor Angela Merkel said Tuesday that "quick action is needed," calling on the U.S. to "make a gesture" and curb the trades. Greek Prime Minister George Papandreou, in Washington, DC to meet with President Barack Obama, is also calling for curbs on speculation which he blames for making his country's debt crisis worse.

The European Commission threatened to ban "purely speculative naked sales on credit default swaps of sovereign debt" and said it would ask for a similar move globally at the Group of 20 summit of leading and emerging economies in June.

Oil settles lower, ending brief rally

NEW YORK (AP) -- Oil prices trimmed some early losses, but still ended lower Tuesday, after rising steadily since the end of last week.

Benchmark crude for April delivery lost 38 cents to settle at $81.49 per barrel on the New York Mercantile Exchange. Earlier, oil dropped as low as $80.16.

Tradition Energy analyst Addison Armstrong said the dollar strengthened against the euro ahead of talks between President Barack Obama and the Prime Minister of Greece, which has been reeling from financial turmoil.

Jobless aid measure clears Senate hurdle

WASHINGTON (AP) -- Legislation to give additional months of unemployment benefits to people who have been out of a job for more than half a year cleared a key hurdle Tuesday that guarantees it will soon pass the Senate.

The sweeping bill also would prevent doctors from absorbing a crippling cut in Medicare payments and extends health insurance subsidies for the unemployed through December. It would add $132 billion to the budget deficit over the next year and a half.

Eight Republicans voted with Democrats to defeat a GOP filibuster of the measure, setting up a final vote on Wednesday.

Abbott paying $450 million for Facet Biotech

NEW YORK (AP) -- Abbott Laboratories says it will buy Facet Biotech for about $450 million in cash, expanding the company's access to biotechnology drugs, including a potential treatment for multiple sclerosis.

Facet and its partner Biogen Idec plan to move the potential multiple sclerosis drug daclizumab into late-stage development in the second quarter. The company also has potential cancer treatments in various stages of development with other partners.

Abbott will pay $27 per share, marking a 67 percent premium to Facet's closing price of $16.21 Tuesday. Both boards of directors have already approved the deal, which is expected to close in the second quarter.

By The Associated Press

The Dow rose 11.86, or 0.1 percent, to 10,564.38.

The S&P 500 index rose 1.95, or 0.2 percent, to 1,140.45. The Nasdaq composite index rose 8.47, or 0.4 percent, to 2,340.68.

Benchmark crude for April delivery lost 38 cents to settle at $81.49 per barrel on the New York Mercantile Exchange.

In other Nymex trading, heating oil fell 1.57 cents to settle at $2.0898 a gallon, and gasoline dropped 2.89 cents to settle at $2.2603 a gallon. Natural gas lost 1.1 cents to settle at $4.516 per 1,000 cubic feet.

In London, Brent crude was down 56 cents to settle at $79.91 on the ICE futures exchange.

 

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