Feds open criminal probe of Gulf oil
spill PORT FOURCHON, La. (AP) -- Attorney
General Eric Holder said Tuesday that federal authorities have opened criminal
and civil investigations into the nation's worst oil spill, and BP lost
billions in market value when shares dropped in the first trading day since the
company failed yet again to plug the gusher. Investors presumably realized the best
chance to stop the leak was months away and there was no end in sight to the
cleanup. As BP settled in for the long-term, Holder announced the criminal
probe, though he would not specify the companies or individuals that might be
targeted. Economy benefiting from building and
manufacturing WASHINGTON (AP) -- The economic
recovery is gaining strength from the biggest rise in construction spending in
nearly a decade and the 10th straight month of expansion for manufacturers. The two positive reports eased some
fears that the debt crisis in Europe might be starting to stunt the U.S.
economic rebound. The burst in April construction
spending reported by the Commerce Department sent a promising signal for an
industry that was among the hardest hit during the recession. In a separate report, the Institute for
Supply Management said its manufacturing index dipped only slightly in May from
a nearly six-year high in April. But the 59.7 reading for May was well above
the 50 level that indicates expansion. Stocks turn sharply lower in late
trading NEW YORK (AP) -- Stocks took another
late-day dive Tuesday after the government said it was starting criminal and
civil investigations into the Gulf of Mexico oil spill. The Dow Jones industrial average
dropped 112 to 10,024.02. Its plunge came shortly before the close and minutes
after Attorney General Eric Holder made the announcement. Stocks in energy
companies and oil service providers tumbled on the news, and other stocks
followed. Trading was choppy for much of the day
before Holder's announcement, a sign that investors weren't sure where to put
their money. Investors were juggling worries about Europe's debt problems with
upbeat reports on U.S. manufacturing and construction. Canada raises interest rates TORONTO (AP) -- Canada on Tuesday
became the first Group of Seven nation to raise interest rates since the global
financial crisis, but said any further hikes would depend on global economic
conditions. The Bank of Canada increased its key
interest rate by a quarter point to .50 percent from a record-low rate of .25
percent. The bank said thus far the impact of
Europe's sovereign debt crisis in Canada has largely been limited to a modest
fall in commodity prices. It said the decision to raise rates
still leaves considerable monetary stimulus in place. Covidien to buy ev3 for $2.6 billion NEW YORK (AP) -- Covidien PLC said
Tuesday it is buying medical device maker ev3 Inc. for $2.6 billion in cash in
a deal that could help it step up sales growth. Covidien, which makes drugs and medical
devices, will pay $22.50 for each share of ev3, a premium of nearly 19 percent
over Friday's closing price. Ev3's devices are used in endovascular
surgeries, operations in which surgeons make small incisions and maneuver
devices in the body through major blood vessels. Other products are used in
neurovascular procedures, or procedures involving both blood vessels and
nerves. Ev3 expects $520 million to $530 million in revenue this year. AIG won't accept lower Prudential offer
for AIA LONDON (AP) -- Bailed-out U.S. insurer
AIG said Tuesday it won't accept a lower offer for its Asian insurance business
from Prudential, which proposed a $5 billion cut to calm rebellious
shareholders who thought the price was too high. London Stock Exchange-listed Prudential
PLC initially agreed to pay $35.5 billion for AIA, the Asian insurance business
of American International Group Inc. Faced with the growing possibility that it
could not win 75 percent backing from shareholders, Prudential lowered the
offer to $30.375 billion. AIG, majority owned by the U.S.
government, planned to use the proceeds from the sale to repay U.S. taxpayers
for some of the $180 billion it got in bailout money during the financial
crisis. US probes reports of mats trapping
pedals in Fords WASHINGTON (AP) -- Federal safety
regulators are investigating a few reports of gas pedals becoming trapped by
floor mats in 2010 Ford Fusions and Mercury Milans. The National Highway Traffic Safety
Administration opened a preliminary investigation Friday after receiving three
such complaints involving unsecured all weather floor mats. There are no
reports of crashes or injuries. A Ford spokesman, Said Deep, said the
problem was due to drivers stacking all-weather mats on top of floor mats that
come with the vehicle. Ford's all-weather mats have warnings advising customers
not to pile them and to secure them properly to the floor, he said. Good news for drivers: Gas prices can
fall more Gasoline prices dropped on Tuesday for
the 26th straight day as lower oil prices continue to work their way to U.S.
drivers. After hitting a national average of
$2.929 per gallon on May 6, retail gasoline prices have fallen 20.2 cents, or
nearly 7 percent, to $2.727 per gallon on Tuesday. Prices in some parts of the country
already are well below the national average. Ohio, Missouri, South Carolina and
Oklahoma are among the states where gas has dropped below $2.60 per gallon. Retail gasoline prices fell 0.5 cents
overnight, 5.5 cents in the past week and 15.6 cents in the past month. Pump
prices are 21.5 cents higher than a year ago. Citi restructures US consumer finance
business NEW YORK (AP) -- Citigroup Inc. is
closing 330 branches of its U.S. consumer finance business as part of a
restructuring aimed at finding a buyer for the unit, the bank said Tuesday. The branch closures at CitiFinancial
will result in about 500 to 600 job cuts across 48 states, the bank said. The U.S. business of CitiFinancial will
also be split into two parts, one offering personal, home equity and
refinancing loans and the other handling loan modifications and restructuring,
Citigroup said. CitiFinancial will be renamed after the
reorganization is complete. FDA clears Amgen's bone-strengthening
drug Prolia WASHINGTON (AP) -- The Food and Drug
Administration has approved Amgen's bone strengthening drug Prolia for
postmenopausal women at risk for fractures, a potential blockbuster market. The injectable drug is given once every
six months to increase bone mass and strength. One out of every two women over age 50
will break a bone in their lifetime due to osteoporosis, which causes bones to
become brittle, according to an FDA statement. By The Associated Press The Dow fell 112.61, or 1.1 percent, to
10,024.02. The Standard & Poor's 500 index
fell 18.70, or 1.7 percent, to 1,070.71, while the Nasdaq composite index fell
34.71, or 1.5 percent, to 2,222.33. Benchmark crude for July delivery fell
$1.39 to settle at $72.58 a barrel on the New York Mercantile Exchange. In other Nymex trading in July
contracts, heating oil lost 3.41 cents to settle at $1.9704 a gallon. Gasoline
lost 4.41 cents to close at $1.9825 a gallon. Natural gas fell 9.3 cents to
settle at $4.248 per 1,000 cubic feet. In London, the Brent crude July contact
fell $1.94 to settle at $72.71 on the ICE futures exchange.