March budget deficit declines to $65.4B WASHINGTON (AP) -- The budget deficit
for March showed a dramatic decline as the Obama administration formally
entered a lower ultimate cost for the government's $700 billion financial
bailout program. The Treasury Department said the
deficit for March totaled $65.4 billion, compared to a $191.6 billion imbalance
a year ago. However, $115 billion of that improvement occurred because the
administration lowered its estimate of the total costs for the Troubled Asset
Relief Program. The lower bailout estimate had already
been included in the administration's budget which it sent to Congress in
February but it had not been included until March in the Treasury Department's
monthly accounting of outlays and receipts. Dow ends above 11,000 for first time in
18 months NEW YORK (AP) -- The Dow Jones
industrial average has closed above 11,000 for the first time in a year and a
half on investors' rising hopes about the economy. The Dow edged up about 9 points Monday
to almost 11,006. The Standard & Poor's 500 index came within a point of
hitting its own milestone of 1,200 during trading but closed just short of that
mark. The Dow has posted six straight weekly
advances, its longest winning streak in a year. The index has added 1,000
points in two months. The index's only close below 10,000 this year came on
Feb. 8. Since then, it's up 11 percent. Alcoa narrows 1Q loss; sees improving
demand DENVER (AP) -- Alcoa Inc. said Monday
that it narrowed its first-quarter loss as demand for some aluminum products
picked up and prices improved. For the quarter that ended March 31,
Alcoa reported a net loss of $201 million or 20 cents per share. That compared with a net loss of $497
million, or 61 cents a share, a year ago, when the company was struggling with
the impact of the recession. Alcoa's most recent results include
$295 million, or 29 cents a share, in one-time charges related to the health
care reform law and the closing of two smelters. Bailout details ease ATHENS, Greece (AP) -- A European
agreement on the details of a financial lifeline for Greece -- should the
heavily indebted country need it -- won early market support Monday, with
Athens' borrowing costs falling as fears of default eased. Although the package is ready if Greece
asks for it, Athens insists it still hopes not to use it and prefers to borrow
on the international bond market. Finance Ministry officials say they will wait
to gauge market reaction in the coming days and weeks before deciding whether
to tap the bailout plan. Prime Minister George Papandreou, who
was in Cyprus on an official visit, said the mechanism would provide assurance
for jittery markets. Panel not ready to say when recession
ended WASHINGTON (AP) -- A panel of academics
that date the beginnings and ends of recessions isn't ready to declare just yet
when this downturn ended. The That assessment came after the group of
academic economists met at its Cambridge, Mass., headquarters on Thursday to
review mountains of economic data. Treasury announces additional bank
warrant sales WASHINGTON (AP) -- The Treasury
Department says it has authorized another six auctions of bank warrants over
the next six weeks to recoup taxpayer money from the controversial financial
bailout program. The Treasury said Monday the
institutions involved include Wells Fargo & Co., PNC Financial Group Inc.,
Comerica Inc. and three other banks. Warrants are financial instruments that
allow the holder to buy stock in the future at a fixed price. The government
received the warrants as compensation for support provided from the $700
billion bailout fund. GMAC to sell European mortgage business NEW YORK (AP) -- GMAC Financial
Services said Monday it struck a deal to sell its European mortgage operations
to a New York asset management firm, bringing it closer to its goal of
withdrawing from the home lending business. GMAC said the assets it is selling
represent about 10 percent of troubled mortgage subsidiary Residential Capital
LLC as of Dec. 31, though they represent much more under new accounting rules
that took effect in January. GMAC, based in Detroit, has been trying
to shed its money-losing mortgage business and focus on automotive financing.
GMAC's mortgage operations lost $4 billion in the fourth quarter. Banga to take top post at PURCHASE, N.Y. (AP) -- Ajay Banga, 50, becomes CEO in July. During a press conference Monday, Banga
said his focus will be on He said by emphasizing local markets,
the payments processor can take advantage of its worldwide reach. NEW YORK (AP) -- The deal is part of The Houston oil company said
subsidiaries of Sinopec International Petroleum Exploration and Production Co.
have agreed to buy its 9.03 percent stake in Syncrude. Key Fed unit to get a new chief WASHINGTON (AP) -- A Fed official William English will be
promoted to director of the division of monetary affairs on July 23, the
central bank announced on Monday. He will succeed Brian Madigan, a seasoned
veteran of the Fed. Madigan plans to retire later this year, after more than 30
years of service, including three years as head of the influential division. In his new job, English will advise Fed
Chairman By The Associated Press the Dow rose 8.62, or 0.1 percent, to
11,005.97. Benchmark crude for May delivery lost
58 cents to settle at $84.34 on the New York Mercantile Exchange. Earlier
prices extended to $85.44. In other Nymex trading in May
contracts, heating oil lost 0.7 cent to settle at $2.2189 a gallon, and
gasoline picked up 0.65 cent to settle at $2.2958 a gallon. Natural gas fell
6.2 cents to settle at $4.008 per 1,000 cubic feet. In London, Brent crude fell 6 cents to
settle at $84.77 on the ICE futures exchange.