AP Business Highlights

·        
Companies:

On Friday April 9, 2010, 5:54 pm EDT

Ex-Fannie Mae execs try to defend track record

WASHINGTON (AP) -- Two former Fannie Mae executives said Friday that competitive pressures, combined with the political goal of increasing homeownership, were to blame for the company's decision to back riskier mortgages that fueled the housing bubble.

Daniel Mudd, Fannie Mae's former chief executive, and Robert Levin, the company's former chief business officer, testified before a panel examining the roots of the financial crisis. Both executives left Fannie Mae after it was seized by regulators in fall 2008.

Stocks rise on more signs of growth; Dow tops 11K

NEW YORK (AP) -- Fresh signs that the economy continues to recover sent the Dow Jones industrial average briefly above 11,000 Friday for the first time in 18 months.

The Dow hadn't crossed that level since Sept. 29, 2008, just as the worst phase of the financial crisis was beginning.

The Dow very briefly went over 11,000 in the final five minutes of trading Friday before settling slightly lower. The average of 30 industrial stocks ended with a gain of 70 points to close at 10,997.35. Broader indexes also rose.

Wholesale inventories and sales both post gains

WASHINGTON (AP) -- Inventories held by wholesalers rose by a larger-than-expected amount in February while sales increased for the 11th consecutive month.

The Commerce Department said Friday that inventories at the wholesale level were up 0.6 percent in February, better than the 0.4 percent increase analysts had expected. Sales rose 0.8 percent, surpassing the 0.5 percent rise economists had forecast.

The gains were an encouraging sign that stronger demand is prompting businesses to restock depleted shelves, a development that will help sustain the economic recovery.

Southern California court gets Toyota lawsuits

MIAMI (AP) -- A panel of federal judges on Friday chose Southern California federal court as the location to consolidate dozens of lawsuits filed in the aftermath of Toyota's recall of millions of vehicles over sudden unexpected acceleration problems.

The decision by the U.S. Judicial Panel on Multidistrict Litigation centralizes more than 200 lawsuits against Toyota around the country before U.S. District Judge James V. Selna, a 2003 appointee of former President George W. Bush.

Selna, 65, whose court is located near Los Angeles in Orange County, Calif., will hear important pretrial motions for all cases, eventually leading to trial, settlement or dismissal of the lawsuits.

Better US-China ties could speed currency change

SHANGHAI, China (AP) -- For months, economists have expected Beijing to start boosting the value of its currency about now to ease strains in its fast-growing economy. The big question: Would Chinese leaders put off changes to avoid looking weak in the face of mounting U.S. pressure for action?

Washington has helped to defuse that conflict with conciliatory gestures including Thursday's impromptu visit to Beijing by U.S. Treasury Secretary Timothy Geithner. Now analysts expect Chinese leaders to go ahead and let the yuan rise, possibly as soon as within the next few weeks.

Constellation Brands posts 4Q loss, dim forecast

ROCHESTER, N.Y. (AP) -- Constellation Brands Inc., which markets Mondavi wine, Svedka vodka and Corona beer, offered a lackluster outlook for its alcoholic drinks Friday as U.S. sales of wine and imported beers remained sluggish in bars and restaurants through the holiday season.

The world's biggest wine company by volume, with brands such as Robert Mondavi and Clos Du Bois, said its fiscal fourth-quarter loss from December through February narrowed to $51 million on sliding sales on spirits and beer and lingering weakness in the key North American wine market.

The company expects to earn $1.53 to $1.68 per share, while analysts had predicted a $1.77 profit.

China passenger car sales up 63 pct in March

SHANGHAI (AP) -- China's passenger car sales jumped 63 percent in March from a year earlier as manufacturers scrambled to meet strong demand driven by tax cuts and government subsidies, a state-affiliated industry group reported Friday.

Passenger car sales rose to 1.26 million vehicles in March, according to the China Association of Automobile Manufacturers.

The figures show sustained growth for automakers in a market that bounced back from a slowdown in late 2008-2009 as the government pumped hundreds of billions of dollars into economic stimulus.

Weak sales in the United States and a surge in car purchases by newly affluent Chinese buyers helped to make this the world's largest auto market last year, when total vehicle sales jumped 45 percent over 2008 to 13.6 million units.

Oil prices settle below $85 a barrel

NEW YORK (AP) -- Oil prices fell Friday for a third day, dropping below $85 a barrel as traders questioned whether Americans were burning enough fuel to justify higher prices.

The slump in crude wiped out gains from earlier in the week, when prices jumped to an 18-month high above $87 a barrel. If oil continues to tumble, it could pull gasoline prices lower. But experts still predict gasoline will get more expensive this summer as vacationers hit the road and the driving season begins in earnest.

The Energy Information Administration said this week the national average should top $3 a gallon this summer.

Massey plans to replace lost W.Va. coal production

CHARLESTON, W.Va. (AP) -- Massey Energy Co. said Friday it plans to produce more coal from other mines to help recover from the business damage caused by the deadly West Virginia mine explosion.

The Upper Big Branch mine was expected to produce 1.6 million tons of coal over the final nine months of the year. Most of it can be replaced by transferring miners from Upper Big Branch and spare equipment to other mines, Massey said in a regulatory filing.

Federal regulators took control of the mine Monday, shortly after the explosion killed 25 miners.

Greece on the edge, bailout terms under discussion

ATHENS, Greece (AP) -- Greece faces the very real prospect that it will need a bailout designed to prevent the country from defaulting -- but markets have been on edge as officials work out details on how a rescue would be carried out.

Greece's finance minister said Friday key aspects of a previously agreed rescue plan by eurozone countries and the International Monetary Fund were being hammered out, even as he insisted no bailout was needed.

The vaguely worded rescue plan agreed on in Brussels on March 25 would provide Greece with loans from other eurozone governments and the International Monetary Fund.

By The Associated Press

The Dow rose 70.28, or 0.6 percent, to close at 10,997.35 after briefly trading above 11,000 for the first time in 18 months.

The Standard & Poor's 500 index climbed 7.93, or 0.7 percent, to 1,194.37. The Nasdaq composite index rose 17.24, or 0.7 percent, to 2,454.05.

Benchmark crude for May delivery lost 47 cents to settle at $84.92 a barrel on the New York Mercantile Exchange.

In London, Brent crude added 2 cents to settle at $84.83 on the ICE futures exchange.

In other Nymex trading in May contracts, heating oil and gasoline both fell less than a penny to settle at $2.226 and $2.2893 a gallon, respectively. Natural gas added 16.1 cents to settle at $4.070 per 1,000 cubic feet.

 

Share this page

Related Headlines

Related Blog Headlines

Related Message Boards