AP Executive Morning Briefing
The Associated PressThe top business news from The Associated Press for the morning of Wednesday, December 3, 2008:
Auditors fault Treasury policing of bailout funds
WASHINGTON (AP) — Lawmakers want the Treasury to do a better job of insisting that banking institutions sharing in the $700 billion bailout comply with limits Congress imposed on executive salaries and use the money for its intended purposes. In the first comprehensive review of the rescue package, the Government Accountability Office said Tuesday that the Treasury Department has no mechanisms to ensure that banking institutions limit their top executives' pay and comply with other restrictions.
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World markets mixed despite Wall Street rebound
SEOUL, South Korea (AP) — World markets were mixed Wednesday, failing to get much impetus from Wall Street's rebound as pervasive concerns about the dismal outlook for the world economy dominated sentiment. Most Asian stock markets crept higher but major European bourses opened lower and futures pointed to a weak session on Wall Street.
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Congress eyes Big Three automakers' survival plans
WASHINGTON (AP) — Detroit's Big Three auto executives have ditched their corporate jets for hybrid cars and replaced vague pleas for federal help with detailed requests for as much as $34 billion in their second crack at persuading Congress to throw their struggling companies a lifeline. Congressional leaders are reviewing three separate survival plans from Chrysler LLC, General Motors Corp. and Ford Motor Co. as they weigh whether to call lawmakers back to Washington for a special session next week to vote on an auto bailout.
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Oil rises slightly after plunging to 3-year low
SINGAPORE (AP) — Oil prices rose slightly Wednesday in Asia after hitting a three-year low overnight as investors try to gauge how much the slowing U.S. and Chinese economies will hurt demand for crude. Light, sweet crude for January delivery was up 74 cents to $47.70 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract fell $2.32 overnight to settle at $46.96, after touching $46.82, the lowest level since hitting $46.20 intraday on May 20, 2005.
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China reluctant to invest in foreign banks
HONG KONG (AP) — China's sovereign wealth fund, which last year poured $5 billion into Morgan Stanley, is reluctant to plow more money into foreign financial institutions until governments hash out coherent policies to cope with the global economic and financial turmoil, the fund's head said Wednesday. The remarks by Lou Jiwei, chairman of the $200 billion China Investment Corp., represent a new blow for ailing banks that were hoping the Chinese government investment fund would use its deep pool of cash to bail them out.
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Wall Street rebounds sharply after big drop
NEW YORK (AP) — In a session that showed more indecision than conviction, the stock market rebounded Tuesday from the previous day's massive decline. The Dow Jones industrials rose 270 points after fluctuating sharply, and all the major indexes rose more than 3 percent. Investors wary about the economy drew solace from Ford Motor Co. Chief Executive Alan Mulally, who said the automaker has enough cash to make it through 2009 and might not need government help. Rival General Motors Corp. said late in the day that it needs $12 billion in government loans to continue operating; the news briefly shook the market, but stocks rebounded before the close.
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Nov. auto sales sink to worst level since 1982
NEW YORK (AP) — U.S. auto sales plunged 37 percent in November to their worst level in more than 26 years, dashing expectations that this dismal year for vehicle demand had found a bottom, and adding more ammunition to the Detroit automakers' case for a congressional lifeline. Every major automaker reported a year-over-year sales decline of more than 30 percent on Tuesday. The Detroit carmakers were among the worst hit, with GM's U.S. sales falling 41 percent and Chrysler LLC's dropping 47 percent.
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US automakers ground jets for trip to Washington
DETROIT (AP) — If the Detroit Three automakers have learned anything since their last trip to Washington, it's that the old way of doing business just won't fly. So the decision by auto executives to travel in hybrid cars rather than corporate jets is just the start to overhauling their image as the industry pleads its case for $25 billion in federal loans.
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Beazer Homes 4Q loss balloons as revenue plunges
Homebuilder Beazer Homes USA Inc. gave Wall Street a double-shot of discouraging news Tuesday: Its fiscal fourth-quarter loss more than tripled from a year ago and it expects to lose money throughout 2009. "Conditions in both the overall economy and housing market were under greater pressure during our fourth quarter and have continued to deteriorate since that time," Beazer CEO Ian J. McCarthy told analysts.
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Sears posts larger 3Q loss on weak US, Kmart sales
CHICAGO (AP) — Sears Holdings Corp. posted its biggest quarterly loss since financier Edward Lampert combined Sears and Kmart into one retail company, due mainly to hefty charges related to store closures and disappointing U.S. sales. The company also withdrew its operating profit outlook because of the country's economic woes. Its stock soared nearly 17 percent, however, amid broader market gains after the retailer announced it was closing more underperforming stores and hiring a trio of new executives.
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Japan Markets
TOKYO (AP) — The benchmark Nikkei 225 stock average rose 140.41 points, or 1.8 percent, to 8,004.10.
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Dollar-Yen
TOKYO (AP) — The dollar was trading at 93.27 yen from 93.13 yen late Tuesday.
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