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Stocks tumble as oil prices rebound
NEW YORK -- Stocks tumbled Friday on escalating worries about the financial and automotive sectors and rebounding oil prices. The major indexes fell by more than 1 1/2 percent, and the Dow Jones industrial average gave up more than 200 points to end at its lowest levels in three months.
While investors have seen other triple-digit days in the past year since concerns about the economy began emerging, the Dow's first finish under 12,000 since mid-March could deal investors a psychological blow.
An afternoon downgrade of automakers helped draw out sellers in the stock market while Treasury prices jumped as investors sought the safety of government debt.
Ford delays production of new pickup truck
DETROIT -- Faced with a continuing plunge in pickup truck and sport utility vehicle sales, Ford Motor Co. on Friday tried to deal with the mess by delaying production of the new F-150 pickup truck and announcing further factory cuts.
Shortly after Ford's announcement, Standard Poor's Ratings Services said it is reviewing ratings on Ford, Chrysler LLC and General Motors Corp. with the possibility of lowering them due to the deteriorating U.S. auto market. Also, Moody's Investors Service changed its ratings assessment for Ford and Chrysler from stable to negative.
Lower credit ratings can boost a company's borrowing costs.
China fuel price hike may not sap demand
SHANGHAI, China -- Chinese motorists, long accustomed to cheap gas, seemed to take in stride a government decision to boost fuel prices Friday by as much as 18 percent.
While higher prices for China's state-controlled fuel will inevitably squeeze consumers at both filling stations and grocery stores, analysts say it is unlikely to make an immediate or huge dent in the country's hunger for oil.
China's economy is booming, and people are buying cars and air conditioners as their incomes grow. There is huge pent-up demand in a country of 1.3 billion, where per capita energy consumption remains far below western nations.
Businesses advised to secure chemicals
WASHINGTON -- The federal government will tell 7,000 businesses next week that they are considered high-risk terrorist targets because they house large amounts of chemicals.
The sites -- which range from major chemical plants to universities, food processing centers and hospitals -- will need to complete a vulnerability assessment so the government can decide how to regulate their security measures in the future.
U.S. intelligence officials say terrorist organizations, including al-Qaida, favor chemical attack methods because of the severe consequences they can inflict.
"I'm trying to complicate these guys' lives," said Bob Stephan, assistant secretary of infrastructure protection at the Homeland Security Department.
Grupo Modelo CEO resigns from A-B board
ST. LOUIS -- The head of Mexican beer company Grupo Modelo is stepping down from the board of Anheuser-Busch Cos. Inc. as the remaining directors of the iconic American brewer of Budweiser are considering a $46 billion takeover offer from Belgian brewer InBev.
The resignation of Carlos Fernandez, president and chief executive of Grupo Modelo SAB, was announced Friday -- the same day that news reports say the Anheuser-Busch board was to meet in St. Louis to consider InBev's $65 a share offer for the nation's largest brewer. Spokeswomen for both Anheuser-Busch and InBev declined comment on those reports.
Anheuser-Busch shares slipped 38 cents to $60.67 Friday. The stock price has risen sharply since rumors of InBev's interest began earlier this spring.
Court lets pension fund buy Bell Canada
TORONTO -- The Supreme Court of Canada ruled Friday that the $35 billion leveraged buyout of BCE Inc. -- the largest leveraged buyout in history -- can go ahead.
The high court overturned a lower court ruling that the sale of BCE, the parent of telecommunications holding company Bell Canada, to the Ontario Teachers' Pension Plan and its minority U.S. partners wasn't in the interests of bondholders. |
