AP
Business Highlights
Monday December 15, 6:27 pm ET

Alleged Madoff fraud has worldwide exposure

NEW YORK (AP) -- The list of investors who say they were duped in one of Wall Street's biggest Ponzi schemes is growing, snaring some of the world's biggest banking institutions and hedge funds, the super rich and the famous, pensioners and charities.

The alleged victims who sunk cash into veteran Wall Street money manager Bernard Madoff's investment pool include some of the world's biggest banking institutions. Britain's HSBC Holdings PLC, Royal Bank of Scotland Group PLC and Man Group PLC, Spain's Grupo Santander SA, France's BNP Paribas and Japan's Nomura Holdings all reported that they had fallen victim to Madoff's alleged Ponzi, or pyramid, scheme.

Detroit automakers await deal on auto loans

ABOARD AIR FORCE ONE (AP) -- Detroit automakers got public reassurance Monday from President George W. Bush that short-term government help for the industry is in the works and could come soon.

Bush told reporters aboard Air Force One during an unannounced trip to Iraq and Afghanistan that his administration is in the process of working with stakeholders on a way forward, but wouldn't give a timetable. In Washington, a Treasury Department official said Monday that no decisions have been made on what type of support to provide Detroit automakers.

Stocks end lower as Madoff victim list grows

NEW YORK (AP) -- Investors sent stocks lower Monday as anxiety over the growing list of firms affected by investment manager Bernard Madoff magnified Wall Street's concerns about the health of the financial sector.

Stocks had traded mixed early on as investors were relieved to hear that President George W. Bush was working on providing short-term government help for the auto industry.

The Dow Jones industrial average finished down 65.15, or 0.75 percent, to 8,564.53.

Toyota delays Mississippi assembly plant

NEW YORK (AP) -- Toyota Motor Corp. is shelving its plans to build the popular Prius hybrid in Mississippi as the slump in the auto industry continues to hobble the Japanese carmaker known for it emphasis on fuel-sipping vehicles.

Toyota's plant under construction in Blue Springs, Miss., was scheduled to begin production in 2010, marking the first time the gas-electric Prius, which has been on sale for more than a decade, would be built outside of Japan and China.

Industrial output fell less than expected in November

WASHINGTON (AP) -- Industrial output fell slightly less than expected in November as manufacturers continued to suffer from weakness in autos and many other areas that is not expected to ease anytime soon.

The Federal Reserve reported Monday that industrial activity dropped by 0.6 percent in November. Economists expected a decline of 0.8 percent.

The manufacturing sector is suffering like the rest of the economy from the deepening recession, which has cut consumer demand for many products.

Three-month decline in gas prices stalls briefly

Crude prices sank again Monday ahead of an OPEC meeting where huge production cuts are expected, though retail gasoline prices rose over the weekend for the first time in nearly three months.

After hitting a low of $1.6559 gallon Friday, gas prices rose over the weekend to break an 86-day streak begun in July after prices topped $4.11 per gallon, according to the Oil Price Information Service.

Light, sweet crude for January on the New York Mercantile Exchange peaked briefly above $50 a barrel early Monday, but then fell $1.77 to settle at $44.51 with more dour economic news from both Asia and the United States.

Court allows lawsuits over 'light' cigarettes

WASHINGTON (AP) -- The Supreme Court on Monday handed a surprising defeat to tobacco companies counting on it to put an end to lawsuits alleging deceptive marketing of "light" cigarettes.

In a 5-4 split won by the court's liberals, it ruled that smokers may use state consumer protection laws to sue cigarette makers for the way they promote "light" and "low tar" brands.

The decision was at odds with recent anti-consumer rulings that limited state regulation of business in favor of federal power.

Fannie to help renters stay in foreclosed homes

NEW YORK (AP) -- Fannie Mae said Monday it's finalizing a plan to help renters stay in their homes even if their landlord enters foreclosure.

The mortgage giant said it's working on a national policy to allow renters living in foreclosed properties -- and who can make their rental payments -- to sign new leases with Fannie while the property is up for sale or get cash to help move into a new home.

Homebuilder sentiment index remains at record low

LOS ANGELES (AP) -- A key gauge of homebuilders' confidence remained at a record low this month, as builders continued to be overwhelmingly discouraged in the prospects of a housing turnaround amid a worsening U.S. economy and rising unemployment and foreclosures.

The National Association of Home Builders/Wells Fargo housing market index held at nine in December for the second month in a row.

Siemens agrees to pay $1.3B in bribery settlement

FRANKFURT, Germany (AP) -- Siemens AG -- rocked by a series of corruption cases that has cost the company both prestige and money -- agreed Monday to pay more than $1 billion in fines in Germany and the U.S. as it moved a step forward in closing a dark chapter in its history.

Munich-based Siemens agreed to pay more than $800 million in fines to settle long-standing corruption charges in the United States and another 395 million euros ($533.6 million) to European authorities. The announcements of the amounts of both fines came Monday.

By The Associated Press

The Dow Jones industrial average finished down 65.15, or 0.75 percent, to 8,564.53. The Standard & Poor's 500 index lost 11.16, or 1.27 percent, to 868.57, while the Nasdaq composite index fell 32.38, or 2.10 percent, to 1,508.34.

The Russell 2000 index of smaller companies fell 15.86, or 3.39 percent, to 452.57.

Light, sweet crude for January on the New York Mercantile Exchange peaked briefly above $50 a barrel, then fell $1.77 to settle at $44.51.

In other Nymex trading, gasoline futures fell 4 cents to settle at $1.0369. Heating oil fell 3.3 cents to settle at $1.4601 a gallon while natural gas for January delivery rose 15.7 cents to settle at $5.645 per 1,000 cubic feet.

In London, January Brent crude fell $1.81 to settle at $44.60.