Toyota casts doubt on man's
speeding Prius claim
SAN DIEGO (AP) — Toyota
cast doubt Monday on a California man's claim that his Prius sped out of
control, saying the report is inconsistent with the findings of the company's
preliminary investigation.
Toyota said in a statement
that the accelerator pedal was tested and found to be working normally and a
backup safety system worked properly. The automaker said the front brakes
showed severe wear and damage from overheating, but the rear brakes and parking
brake were in good condition.
The motorist, James Sikes,
said his car raced to 94 mph on a freeway near San Diego last week. The March 8
incident ended when Sikes stopped the car with help from a California Highway
Patrol officer.
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Stocks end mixed ahead of
Fed's rate meeting
NEW YORK (AP) — Investors
turned cautious Monday ahead of the Federal Reserve's meeting on interest
rates.
Major stock indexes closed
narrowly mixed after trading lower for most of the day. An analyst upgrade of
Wal-Mart Stores Inc. helped lift the Dow Jones industrial average by about 18
points to 10,642.15, its fifth straight gain.
Investors will be looking
to the Fed's statement that follows its meeting Tuesday for clues about the
economic recovery and the central bank's plans for interest rates. Policymakers
are almost certain to keep the Fed's benchmark rate unchanged at near zero.
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FCC unveiling sweeping
national broadband plan
WASHINGTON (AP) —
Communications regulators are unveiling a sweeping proposal to overhaul U.S.
broadband policy. Their aim: to bring affordable, high-speed Internet
connections to all Americans and make access much faster for people who already
have broadband.
Yet it's not certain the
Federal Communications Commission can find the funding, corporate support and
legal clearance to carry out the entire vision of the plan.
Already, broadcasters
oppose one key element of the proposal, which calls for reclaiming some
airwaves now in the hands of TV stations and instead selling those frequencies
to companies that deliver wireless Internet access.
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Calvin Klein parent to buy
Tommy Hilfiger for $3B
NEW YORK (AP) — Two iconic
American clothing labels — preppy Tommy Hilfiger and Calvin Klein, known for
its modern aesthetic — are coming together under one roof.
Calvin Klein parent
Phillips-Van Heusen said Monday it plans to purchase Tommy Hilfiger for about
$3 billion in cash and stock.
The deal adds a prominent
brand to Phillips-Van Heusen's stable, which also includes Izod and Arrow. It's
expected to help Phillips-Van Heusen introduce some of its brands overseas,
where 65 percent of Hilfiger's business is generated.
Apparel analysts expect the
Hilfiger brand to expand further beyond its stronghold in Europe into Asia and
South America, while bolstering its U.S. business.
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China trims holdings of
Treasury securities
WASHINGTON (AP) — China
retained its spot as the biggest foreign holder of U.S. Treasury debt in
January even as it trimmed its holdings for a third straight month. The string
of declines underscored worries that the U.S. government could face much higher
interest rates to finance soaring budget deficits.
The Treasury Department
said Monday that China's holdings dipped by $5.8 billion to $889 billion in
January compared with December. Japan, the second-largest foreign holder of
U.S. government debt, also trimmed its holdings but by a much smaller $300
million, to $765.4 billion.
Net foreign purchases of
long-term securities, a category that includes both government and corporate
debt, totaled $19.1 billion in January, as net purchases of private corporate
bonds fell by $24.8 billion, the biggest drop on record.
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Industrial production rises
0.1 percent in February
WASHINGTON (AP) —
Industrial production edged up 0.1 percent in February, beating expectations
and marking the eighth straight monthly increase. The manufacturing sector —
for months a rare bright spot in the economy — produced less due to winter
storms but is expected to rebound in March.
The Federal Reserve said
Monday that manufacturing, the index's largest component, fell 0.2 percent.
Mining and utilities rose 2.0 percent and 0.5 percent, respectively.
Manufacturing took a hit
from winter storms that shut down most of the Northeast in February. The storms
reduced hours worked at factories and workers' earnings. Still, the severe
weather increased demand for heating energy, boosting mining and utility
production.
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Homebuilder sentiment index
falls in March
LOS ANGELES (AP) — Harsh
winter weather and competition from deeply discounted foreclosures are putting
a damper on sales prospects for homebuilders.
The National Association of
Home Builders said Monday its housing market index, which tracks industry
confidence, slipped this month by two points to 15, back to its January level.
Builders are seeing fewer
prospective buyers and are feeling less optimistic about the likelihood of
sales over the next six months, according to the survey of 477 builders.
Readings below 50 indicate
negative sentiment about the market. The last time the index was above 50 was
in April 2006.
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US, UK top debt ratings
safe for now, Moody's says
LONDON (AP) — The United
States and Britain are more likely than Germany and France to witness an
embarrassing downgrade of their top debt rating, agency Moody's Investors
Service said Monday.
In a quarterly report
assessing the prospects of the triple A-rated countries, including Spain and
the "less fiscally challenged" Denmark, Finland, Norway and Sweden,
Moody's warned that the economic recovery remained fragile in many advanced
economies.
For now though, Moody's
said the triple A governments don't face an immediate threat to their top
ratings as the servicing of the debt remains manageable — the top credit rating
reduces the interest payments countries have to pay on their debt when going to
the bond markets to raise capital.
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Former InfoGroup CEO paying
$7.3M
WASHINGTON (AP) — The
founder and former CEO of database provider InfoGroup Inc. has agreed to pay
more than $7.3 million to settle federal regulators' charges of siphoning off
nearly $9.5 million from the company to finance his lavish lifestyle.
Vinod Gupta also was
accused by the Securities and Exchange Commission of putting InfoGroup Inc.
into $9.3 million of undisclosed transactions with other companies in which he
held a personal stake. He agreed to the settlement announced Monday without
admitting or denying the SEC's allegations.
The SEC also said it
reached a settlement with the former chairman of InfoGroup's audit committee,
Vasant Raval, who is paying a $50,000 civil fine. Charges against two former
chief financial officers are still pending.
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Boston Scientific suspends
defibrillator sales
WASHINGTON (AP) — Medical device
maker Boston Scientific said Monday it is suspending sales of its
heart-shocking defibrillator implants after failing to alert regulators to
changes in manufacturing of the best-selling devices.
The company said it
uncovered two production changes that were not cleared with the Food and Drug
Administration. Medical device makers are required to alert regulators to
significant changes in life-sustaining devices like defibrillators, which help
correct irregular heart beats.
The Natick, Mass.-based
company said it will retrieve all the affected devices from suppliers and
hospitals. It was unclear when the company would resume sales.
By The Associated Press
The Dow rose 17.46, or 0.2
percent, to 10,642.15, its highest close since Jan. 19.
The Standard & Poor's
500 index rose 0.52, or 0.1 percent, to 1,150.51. The index is at its highest
level since Oct. 1, 2008. The technology-dominated Nasdaq composite index fell
5.45, or 0.2 percent, to 2,362.21.
Benchmark crude contracts
for April delivery sliding $1.44 to settle at $79.80 a barrel on the New York
Mercantile Exchange. Earlier, crude dipped as low as $79.16. It's been nearly
two weeks since prices dropped below $80.
In other Nymex trading in
April contracts, heating oil fell 3.64 cents to settle at $2.0576 a gallon, and
gasoline dropped 3.22 cents to settle at $2.2228 a gallon. Natural gas slipped
by 0.9 cent to close at $4.391 per 1,000 cubic feet. It hit a new 52-week low
of $4.334 in earlier trading.
In London, Brent crude was
down $1.50 at $77.89 on the ICE futures exchange.