AP Executive Morning Briefing
The Associated PressThe top business news from The Associated Press for the morning of Monday, June 8, 2009:
Chrysler dealers scramble to unload vehicles
Peter J. Walsh, the owner of Walsh Dodge in Jersey City, N.J., started out selling used cars in his hometown 28 years ago after the birth of his daughter. He slowly built his business, and felt as if he'd finally made it when he earned his Chrysler shingle in 2000. But on Tuesday, Walsh Dodge will lose that shingle — as will 788 other dealers across the country. Auburn Hills, Mich.-based Chrysler has asked a bankruptcy court for permission to terminate the franchise agreements of about 25 percent of its dealers. Chrysler needs to cut costs, and claims current sales levels don't justify a network of 3,189 dealers.
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European stocks lower as investors assess outlook
LONDON (AP) — European stock markets fell Monday following a mixed performance in Asia as investors took advantage of a quiet start to the week to book profits and assess whether the sharp rally in equities over the last three months can continue through the summer months. In Europe, the FTSE 100 index of leading British shares was down 52.48 points, or 1.2 percent, at 4,386.06 while Germany's DAX fell 84.21 points, or 1.7 percent, to 4,992.82. The CAC-40 in France was 47.07 points, or 1.4 percent, lower at 3,291.98.
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Oil drops below $67 in Asia
BANGKOK (AP) — Oil prices dropped below $67 Monday in Asia as a rally that has roughly doubled the price of crude in four months lost some steam in the face of economic reality. Benchmark crude for July delivery was down $1.50 at $66.94 a barrel by midday Bangkok time in electronic trading on the New York Mercantile Exchange. On Friday, it settled down 37 cents at $68.44 after jumping as high as $70.32, the highest since October.
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World airlines seen losing $9 billion this year
KUALA LUMPUR, Malaysia (AP) — The world's airlines will collectively lose $9 billion this year — nearly double the previous projections — and face a slow recovery as the economic crisis saps air travel and cargo demand, an industry body warned Monday. The International Air Transport Association, which represents 230 airlines worldwide, increased its loss estimate from the $4.7 billion it forecast in March, reflecting a "rapidly deteriorating revenue environment."
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China Eastern, Shanghai Airline shares suspended
SHANGHAI (AP) — Trading in shares of China Eastern Airlines and smaller rival Shanghai Airlines was suspended Monday, though both carriers would not comment on reports they plan to merge. China Eastern has gotten hundreds of millions of dollars in government aid as it struggles through the economic slowdown. Rumors that China Eastern might tie up with Shanghai Airlines or another competitor have been circulating for months.
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AP analysis shows recession's impact moderating
The recession's grip loosened slightly this spring as seasonal hiring picked up and helped offset rising bankruptcies and foreclosures, according to the Associated Press' monthly analysis of the economic pain in more than 3,100 U.S. counties. The latest results of the AP's Economic Stress Index show the free fall that marked the autumn of 2008 and winter of 2009 gave way in April to a more controlled descent, possibly even a bottom. Still, the analysis found that pain remains high compared with year-ago levels.
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1Q credit card delinquency rate jumps 11 percent
NEW YORK (AP) — Credit card holders who in ordinary years might have used their tax refunds to pay down their balances apparently spent the money elsewhere as the recession deepened in the first quarter. That's one of the conclusions that may be drawn from data showing the delinquency rate for bank-issued credit cards rose 11 percent in the first three months of the year, according to credit reporting agency TransUnion.
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New ads present Spam as spark for lively meals
MILWAUKEE (AP) — The makers of Spam, long a symbol of frugality, are advertising the often-maligned canned pork as a way to relieve boredom at the dinner table as the recession wears on. The "Break the Monotony" ad campaign moves to television and radio Monday as consumers seeking to eat on the cheap buy more of Hormel Foods Inc.'s low-cost Spam, Dinty Moore beef stew and namesake chili. The campaign offers new uses for the meat-in-a-can designed to brighten its image — away from the meat notoriously lampooned in a 1970 Monty Python skit and toward a fun, hip ingredient useable in a range of comfort foods.
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Live Nation expands 'no service fee' ticket plan
LOS ANGELES (AP) — On the heels of its first successful "No service fee Wednesday," concert promoter Live Nation Inc. says it will expand the summer ticket program from the lawn to reserved seats this week, while acknowledging that some fees never went away. The first 24-hour discount Wednesday drove lawn ticket sales up six-fold to a single-day record, although the company wouldn't say how many tickets it sold.
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Market rally hits 3 months, raising questions
NEW YORK (AP) — Three months can feel like a long time on Wall Street. In the stock market, where news about companies and the economy dictate buy and sell decisions in a matter seconds, the market's powerful rally is getting pretty old to some experienced players.
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Gold Prices
LONDON (AP) — Gold traded in London at $946.50 per troy ounce, down from $962.00 late Friday.
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Japan Markets
TOKYO (AP) — The benchmark Nikkei 225 stock average rose 97.62 points, or 1 percent, to 9,865.63, an eight-month high.
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Dollar-Yen
TOKYO (AP) — The dollar bought 98.54 yen, up from 98.36 yen late Friday in New York.
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