MyrtleBeachOnline.com: Business - Wire

World stocks tumble on US deflation fears

Wed, 19 Nov 2008 12:26 EST

World stock markets slumped Wednesday amid concerns about sinking consumer prices in the U.S. and the shaky future of the Big Three Detroit-based automakers.

The FTSE 100 index of leading British shares closed down 202.87 points, or 4.8 percent, at 4,005.68, while Germany's DAX was 225.38 points, or 4.9 percent, lower at 4,354.09. The CAC-40 in France was down 129.51 points, or 4.0 percent, at 3,087.89.

In the U.S., the Dow Jones industrial average fell 191.79, or 2.3 percent, to 8,232.96, while the Standard & Poor's 500 index fell 25.52, or 3 percent, to 833.60, after a bigger than expected fall in U.S. inflation and a further contraction in the housing market.

UK credit agency Experian 1H profit rises 15 pct

Wed, 19 Nov 2008 12:21 EST

British credit agency Experian PLC said Wednesday its net profit rose 15 percent in the first half on strong growth in Latin America and a successful cost savings program.

The company said net profit for the six months through Sept. 30 was $258 million, up from $224 million a year earlier.

Over the same period, revenue rose 11 percent to $2 billion.

Reid seeks to lower expectations for auto bailout

Wed, 19 Nov 2008 12:21 EST

The top Senate Democrat sought Wednesday to lower expectations for legislation this week to help endangered domestic carmakers, saying it would be the Bush administration's job to save the industry if Congress doesn't.

"The Congress need do nothing" if it can't agree on a bill to speed $25 billion in new loans to the industry, Sen. Harry Reid of Nevada told colleagues. While he told the Senate he still hoped lawmakers could agree to an auto deal in the "next day or two" of the current lame-duck session, he added: "If we can't do it here legislatively, I would hope that the secretary of Treasury would listen loud and clear because they could take this into their own hands and do what I think is appropriate from their perspective."

The rescue plan appeared stalled on Capitol Hill, even as the heads of General Motors, Ford and Chrysler returned for a second day to plead for relief and as their congressional backers urged colleagues not to punish them for past mistakes.

2 former Siemens managers convicted

Wed, 19 Nov 2008 12:11 EST

Two Siemens AG employees were convicted Wednesday of involvement in a corruption scandal at the industrial conglomerate and sentenced to probation and fines.

Ernst Keil-von Jagemann, 58, and Wolfgang Rudolph, 68, were both convicted of accessory to breach of trust charges after admitting during their Munich state court trial to being part of a slush fund operation to win business.

Keil-von Jagemann was sentenced to two years' probation and fined euro12,000 ($15,160) while Rudolph received 9 months probation and a euro20,000 ($25,270) fine.

NY jury convicts opera-loving philanthropist

Wed, 19 Nov 2008 12:06 EST

A Manhattan jury has convicted philanthropist Alberto Vilar after prosecutors accused the investment adviser of swindling investors out of millions of dollars.

Federal prosecutors accused Vilar and a business partner of falsely telling investors their money would be safely invested. The government alleged that the men actually poured millions of dollars into risky technology stocks before the stocks crashed.

The mother of actress Phoebe Cates testified that $5 million of her money was mishandled by Vilar and a co-defendant.

Consumer prices drop record 1 percent in October

Wed, 19 Nov 2008 12:01 EST

Consumer prices plunged by the largest amount in the past 61 years in October as gasoline pump prices dropped by a record amount.

The Labor Department said Wednesday that consumer prices fell by 1 percent last month, the biggest one-month decline on records that go back to February 1947. The drop was twice as large as the 0.5 percent decline analysts expected.

In other economic news, the Commerce Department reported that construction of new homes and apartments fell by 4.5 percent in October to an annual rate of 791,000 units. That was the slowest construction pace on records going back to 1959 and underscored that housing remains caught in a severe slump.

Colombia seeks arrests in pyramid scheme

Wed, 19 Nov 2008 12:01 EST

Colombia on Wednesday sought the arrest of the leaders of a company involved in a pyramid scheme that has caused a national panic over hundreds of millions of dollars in lost investments.

Attorney General Mario Iguaran said he would ask Panama to extradite David Murcia Guzman, the DMG company's principal shareholder. He said evidence would show that DMG was involved in money-laundering, and said none of the company's leaders were capable of running a financial services company.

Murcia was among seven people whose arrests are being sought, said Gladys Sanchez, a prosecutor who leads an anti-money laundering unit. Two were captured Wednesday morning in Bogota and face charges including money laundering and bribery. Five, including Murcia, have yet to be detained.

Canada's central bank says economy worsening

Wed, 19 Nov 2008 12:01 EST

The Canadian economy is deteriorating faster than projected and short-term interest rates may need to be cut again in an effort to boost activity, Bank of Canada governor Mark Carney said Wednesday.

Carney signaled that the central bank may reduce short-term interest rates again on Dec. 9.

"Despite having already cut official interest rates in half over the past year and having a financial sector that is still functioning effectively, some further monetary stimulus will likely be required to achieve the inflation target over the medium term," he said in notes from a speech delivered to a business audience in London, England.

Stocks fall after report on consumer prices

Wed, 19 Nov 2008 11:56 EST

Wall Street sank more than 175 points Wednesday, as investors, already nervous about the fate of the nation's top automakers, scoured more discouraging economic data.

Investors vacillated in early trading as they tried to hold on to gains achieved in the previous session, but gave way to more evidence that the economy remains in flux.

According to the Labor Department's Consumer Price Index, consumer prices plunged by the largest amount in the past 61 years in October as gasoline pump prices dropped by a record amount. While lower prices might be good for the consumer, they can hurt corporate profits. Lower prices also raise the threat of deflation, a prolonged bout of falling prices.

EU farm ministers mull farm subsidy reforms

Wed, 19 Nov 2008 11:56 EST

As thousands of farmers protested vehemently outside, European Union agriculture ministers mulled changes Wednesday to the EU's euro53 billion ($67 billion) farm support program.

The EU spends about 40 percent of its budget supporting 13 million farmers who make up less than 3 percent of its population. Yet the farm ministers in the 27-nation bloc are under strong pressure from lawmakers and farmers who want continued aid and subsidies.

Ministers were discussing proposals from the EU's executive office to move the farm program away from direct handouts to farmers by diverting cash to projects promoting rural development, food quality and environmental protection.

Oil prices fall with global stock markets

Wed, 19 Nov 2008 11:46 EST

Oil slipped below $54 a barrel Wednesday as stock markets across the globe fell and yet another U.S. government report showed how badly the housing market has been hit.

Governments, businesses and consumers cut back on energy use when the economy slows and crude prices reflected those perceptions.

Light, sweet crude for January delivery traded down 66 cents at $54.10 a barrel on the New York Mercantile Exchange after falling to a 52-week low of $53.66.

Treasury bonds higher after economic reports

Wed, 19 Nov 2008 11:46 EST

Treasury bonds continued their rally on Wednesday, with another dose of negative economic reports ushering investors into safer positions.

Bond yields, which move in the opposite direction from prices, have continued to fall in recent weeks, suggesting that, even as their returns diminish, investors favor the relative securities of government-backed debt.

Consumer prices plunged in October, a government report showed, a sign inflation is slowing, which supports the value of fixed-income investments. Decelerating price growth also make it easier for policymakers to cut interest rates when the Federal Reserve meets next month.

Barclays' shares fall on imminent fundraising deal

Wed, 19 Nov 2008 11:40 EST

Barclays PLC's shares fell 7.5 percent on Wednesday on the growing likelihood that a 7 billion pound ($10.6 billion) fundraising deal, expected to erode shareholder value, will be approved.

Barclays, Britain's second largest bank, said earlier Wednesday that institutional investors had agreed to buy all 500 million pounds ($750 million) worth of preferred stock offered to them on Tuesday. The stock was previously part of a larger offering earmarked for a trio of private investors in the Middle East, but was opened up to existing shareholders after complaints poured in.

The successful sale suggests leading shareholders will vote in favor of the wider plan, worth 7 billion pounds, at a meeting next week.

Brown hints at more steps to get credit flowing

Wed, 19 Nov 2008 11:36 EST

Prime Minister Gordon Brown said Wednesday that further measures may be needed to encourage banks to resume a normal flow of credit to small British businesses and homeowners.

Brown came under pressure Wednesday from opposition lawmakers who complained that the government's 37 billion pound ($55.5 billion) recapitalization program for banks had not yet eased the flow of credit.

Brown said the government was monitoring banking activity, and meeting frequently with bankers to try to resolve issues which continue to restrict credit during the global financial crisis.

China's Hu extends credit, donations to Cuba

Wed, 19 Nov 2008 11:26 EST

Chinese President Hu Jintao has promised Cuba at least $78 million in donations, credit and hurricane relief to one of the few communist allies China has left.

Hu also met with a thin-looking Fidel Castro before leaving for the Asia-Pacific economic summit in Peru.

China agreed to donate $8 million to Cuba and extend the second, $70 million phase of $350 million in previously agreed-upon credit to renovate Cuban hospitals.

EU official: Help justified for Opel, industry

Wed, 19 Nov 2008 11:26 EST

The European Union's industry chief said Wednesday that "extraordinary measures" are justified to keep car maker Adam Opel GmbH in business and shore up the entire car industry, blaming problems on U.S. car companies and the U.S.-spawned financial crisis.

EU Industry Commissioner Guenter Verheugen warned that the collapse of General Motors Corp.'s German-based Opel car maker could trigger a domino effect that could bring down other car companies in an industry that directly employs some 12 million people.

"We are going to do all we possibly can to help," he told the European Parliament. "If one big car maker disappears from the market, there will be a knock-on effect all down the line."

eHarmony agrees to provide same-sex matches

Wed, 19 Nov 2008 11:16 EST

Online dating service eHarmony is adding another personality trait to its 29 dimensions of computability.

The California-based company will begin providing same-sex matches under as part of a settlement with New Jersey's Civil Rights Division.

Garden State resident Eric McKinley filed a complaint against the online matchmaker in 2005.

US Justice Department sends Medtronic subpoena

Wed, 19 Nov 2008 11:16 EST

The U.S. Department of Justice has sent a subpoena to medical device maker Medtronic Inc. as part of an investigation into unapproved, or "off-label," uses of its Infuse spinal graft.

Bill Hawkins, chief executive for Minneapolis-based Medtronic, revealed the subpoena during a Tuesday conference call with analysts, but he declined to elaborate on what was requested.

"For years, Medtronic has had strict guidelines in place on appropriate promotion of products according to labeled indications," Hawkins said. "We are complying appropriately with the DOJ's request."

Animal rights video shows turkey abuse in W.Va.

Wed, 19 Nov 2008 11:11 EST

A video released by an animal rights group on Tuesday claims to show horrific abuse of turkeys at West Virginia farms operated by major global poultry grower Aviagen Inc.

People for the Ethical Treatment of Animals said the video, which includes workers stomping on turkeys' heads and twisting their necks to kill them, was shot by an undercover investigator who worked on the companies' farms for more than two months.

The undercover worker, who was not identified, described stifling, dusty barns where the animals were kept and caught video of several workers killing turkeys, slamming them into metal cages and bragging about previous abuse of the animals.

Romania suspends tax on new cars

Wed, 19 Nov 2008 11:11 EST

The Romanian government will suspend a tax on new cars to protect jobs in the auto industry, which has been hit by the world economic crisis, Prime Minister Calin Popescu Tariceanu said Wednesday.

Tariceanu said the government will ask the European Commission to allow the measure, which he wants to run until the end of 2009.

He made his announcement after meeting President Traian Basescu, who also said he wants to scrap the tax to protect jobs.