The announcement Thursday was a politically charged win for
German Chancellor Angela Merkel, who saw the deal as the best change to save
jobs at a major employer less than three weeks before national elections on
Sept. 27. GM will see a 55-percent stake in Adam Opel GmbH transferred to
the Canadian-Russian team but will keep 35 percent for itself, with 10 percent
held by the workers. Opel had been placed in a trust with Germany holding 65
percent and GM 35 percent to keep it from being drawn into GM's restructuring
under bankruptcy protection in the U.S. Stocks extend gains to 5 days after jobs report NEW YORK (AP) -- Investors poured money into stocks for a fifth
day after a drop in weekly unemployment claims and a spike in oil raised hopes
for the economy. The Dow Jones industrial average rose 80 points Thursday to
9,627.48, its highest close since November. The index is up 347 points in five
days, its longest winning streak since last fall. The gains have come even as analysts say the market is overdue
for a retreat. The advance followed the Labor Department's report that jobless
claims fell more than expected to 550,000 last week. A jump in oil lifted
energy companies and an upbeat forecast from consumer products maker Procter
& Gamble Co. added to enthusiasm about an economic recovery. Trade, jobless claims figures show recession fades WASHINGTON (AP) -- The ending of the recession is reviving global
trade, increasing U.S. imports by a record amount in July and boosting foreign
demand for American goods for a third straight month. While the job market remains a long way from recovering, first-time
claims for unemployment benefits fell more than expected last week, offering
some cause for optimism. The jump in imports could be a sign that U.S. consumer spending
is recovering, economists said. That's good news because such spending accounts
for 70 percent of economic activity. P&G cuts prices to adjust, but sees sales rising CINCINNATI (AP) -- The world's largest consumer products maker is
finding that "new and improved" is still good, but "lower
price" is working better. The Procter & Gamble Co., a bellwether of consumer spending,
has shifted tactics in the chase for bargain-hunting shoppers with price cuts,
promotions emphasizing value, and even a shakeup of its famed laundry business. Some economic indicators have implied the economy is improving,
but P&G says it's not expecting consumers to start spending freely again.
So it's doing more courting of the frugal. After watching sales drop all year as households cut spending and
traded down to cheaper competitors, P&G officials said Thursday they expect
sales to start bouncing back this fall because of new products, lower prices
and more promotions. Geithner: Confidence has returned to markets WASHINGTON (AP) -- Citing emerging financial sector stability,
Treasury Secretary Timothy Geithner said Thursday that a number of government
rescue efforts in place since the Wall Street crisis are no longer needed and
that banks will repay $50 billion in rescue funds over the next 18 months. Geithner, testifying before a congressional watchdog panel, said
the nation still has a ways to go before "true recovery takes hold."
But he said improved conditions in the banking industry have prompted Treasury
to begin winding down emergency support programs implemented after the collapse
of Lehman Brothers last year. The cautious but upbeat tone reflects a growing push by the
administration to present the government financial rescue efforts as a success
amid lingering public apprehension about the economy. John Mack to step down as Morgan Stanley CEO NEW YORK (AP) -- John J. Mack will step down as CEO of Morgan
Stanley in January but will continue as chairman, the investment bank announced
Thursday. Mack will be succeeded by Co-President James P. Gorman. Robert Kidder, lead director of Morgan Stanley, said in a statement
that Mack told the board 18 months ago he wanted to step back from the CEO role
when he turns 65 in November. Mack has led Morgan Stanley for four years. Morgan Stanley has continued to post losses in the wake of the
financial crisis, but has repaid the $25 billion in bailout money it got from
the government. Mack has come under some criticism for scaling back the
company's risk profile even as rivals like Goldman Sachs have regained momentum
as the crisis has ebbed. Seed company Monsanto plans deeper staff cuts ST. LOUIS (AP) -- Monsanto Co., the world's biggest seed maker,
said Thursday it plans to make deeper work force cuts than previously
announced, saying it will reduce its staff by about 8 percent to cut costs. The St. Louis-based company also said its 2009 earnings would
come in at the low end of its previous forecast due in part to weaker than
expected results from Roundup and other herbicides. In June, Monsanto had said it was cutting about 4 percent of its
staff, or about 900 jobs. The new target of 8 percent indicates the St.
Louis-based company is cutting about 1,800 jobs, according to spokeswoman Kelli
Powers, who also said most of the employees working in the U.S. have already
been notified of the job cuts. Money market fund guarantee program to end WASHINGTON (AP) -- The Obama administration said Thursday that a
program used to guarantee as much as $3 trillion in money market mutual fund
assets will end on schedule next week. The program, which will be closed down on Sept. 18, had no direct
cost to taxpayers and earned more than $1 billion in fees paid by the mutual
fund industry, according to the Treasury Department. It was established at the height of the financial crisis last
fall after a large money market fund "broke the buck" -- meaning the
value of its underlying assets fell below $1 for each investor dollar put in. SEC officials promise changes after Madoff failure WASHINGTON (AP) -- The Securities and Exchange Commission's
watchdog, who chronicled a history of breakdowns at the agency despite numerous
red flags raised about Bernard Madoff's business, has recommended
"employee-by-employee" action to ensure the failures aren't repeated. And two top SEC officials pledged at a Senate hearing Thursday to
fix the problems that led to the agency's failure to detect the
multibillion-dollar fraud conducted for more than a decade by Madoff. The heads
of the SEC's enforcement division and inspections office said they "deeply
regret" the agency's failure in the Madoff affair and promised changes to
avoid future breakdowns. Oil rises after decline in crude supplies UNDATED (AP) -- Oil prices moved higher for a third straight day
Thursday after a report showed that U.S. crude inventories decreased more than
expected last week. Oil also got support from a weaker U.S. dollar, OPEC's decision
to maintain production levels and a new report that says the slump in global
oil demand will not be as bad as initially feared. Benchmark crude for October delivery rose 63 cents to settle at $71.94
a barrel on the New York Mercantile Exchange. Earlier in the day, the contract
rose as high as $72.44. On Wednesday, the contract rose 21 cents. By The Associated Press The Dow rose 80.26, or 0.8 percent, to 9,627.48. The broader S&P 500 index rose 10.77, or 1 percent, to
1,044.14. The Nasdaq composite index rose 23.63, or 1.2 percent, to 2,084.02. The Russell 2000 index of smaller companies rose 8.50, or 1.5
percent, to 594.90. Light, sweet crude rose 63 cents to $71.94 a barrel on the New
York Mercantile Exchange. Natural gas prices jumped late in the session to settle 42.7
cents higher, or 15 percent, at $3.256 per 1,000 cubic feet. In other Nymex trading, gasoline for October delivery was down
2.45 cents to $1.8036 a gallon, and heating oil fell 0.55 cents to $1.7855 a
gallon. In London, Brent crude settled 42 cents higher at $70.25 on the
ICE Futures exchange.