On Wednesday January 20, 2010, 6:23 pm
Wells Fargo sees signs of life in
consumer lending
NEW YORK (AP) -- Wells Fargo says the
economy is getting better -- it sees signs of recovery in its loan business.
But the big bank may be more of an exception than a leading indicator.
Breaking from the cautious, even
downbeat forecasts of rivals like JPMorgan Chase & Co., Wells Fargo on
Wednesday used words like "favorable" and "confidence"
about its future amid tentative signs that its loan defaults are close to a
peak or already have peaked. The company believes the recession-weary consumer
could be making a comeback.
The company is way ahead of other
banks, although the CEO Bank of America, which lost more than $5 billion last
quarter, expressed mild optimism that sagging consumer sentiment may be turning
around.
Stocks fall as China clamps down on
bank lending
NEW YORK (AP) -- The stock market
posted its biggest drop in a month on concerns that tighter lending in China
could endanger an economic recovery. Disappointing earnings from IBM and Morgan
Stanley added to investors' angst.
At the same time, a spike in the dollar
pushed commodity prices sharply lower Wednesday, hurting stocks of energy
companies and materials producers.
The Dow Jones industrial average fell
122 points from a 15-month high but ended well off its lows for the day. Demand
for safe havens like government debt rose, pushing yields lower in the Treasury
market.
Home construction falls; wholesale
prices edge up
WASHINGTON (AP) -- The housing market
remains a significant risk to the economy, data Wednesday showed, as bad
weather across much of the country hammered the construction industry.
Construction of new homes and
apartments fell 4 percent in December to a seasonally adjusted annual rate of
557,000 from an upwardly revised 580,000 in November, the Commerce Department
said. Applications for future projects, however, increased strongly as the
industry ramps up for the spring selling season.
Meanwhile, inflation pressures at the
wholesale level eased in December as a drop in energy prices offset a big jump
in food costs. The Labor Department said Wednesday that wholesale prices edged
up 0.2 percent last month, much slower than the 1.8 percent surge in November.
Energy prices, which had been up for two months, fell in December.
New York Times to charge for Web access
in 2011
NEW YORK (AP) -- The New York Times
says it will charge readers for full access to its Web site starting in 2011, a
risky move aimed at increasing online revenue without driving away advertisers
that want the biggest possible audience.
The potential pitfalls have made most
other major newspapers hesitant to take a similar step. But after months of
deliberation, the Times said Wednesday that it will use a metered system,
allowing free access to a certain number of articles each month and then
charging users for additional content.
The Times did not disclose how many
articles would be available for free each month or what it would charge to read
more. Subscribers to the printed version of the Times would still have free
access to the Web site.
Oil drops, settles below $78 a barrel
NEW YORK (AP) -- Oil prices tumbled
Wednesday, weighed down by a drop on Wall Street, a stronger dollar and signs
that China's energy needs might not be as robust as previously thought.
Gasoline prices also fell, sliding
lower for the sixth straight day.
The national average fell by less than
a penny overnight to $2.737 a gallon, according to AAA, Wright Express and Oil
Price Information Service. A gallon of regular unleaded is still 14.7 cents
more expensive than it was last month and costs 89.4 cents more than the same
time last year.
Benchmark crude for February delivery
gave up $1.40 to settle at $77.62 a barrel on the last day of trading for the
contract on the New York Mercantile Exchange.
Holiday shopping, PayPal help eBay 4Q
profit rise
SAN FRANCISCO (AP) -- EBay Inc. said
Wednesday its fourth-quarter earnings climbed, bolstered by growth in its
PayPal payments business and a holiday shopping season that was healthier than
the year before. The company also logged a large gain from the November sale of
its Skype telecommunications business.
EBay, which runs online auctions and
e-commerce sites, has been working to improve the shopping experience on its
main site. During the holiday season, it tried to attract customers by focusing
on deals from sellers who included free shipping and guaranteed returns on new
items. It also promoted products that were new but not the latest model,
emphasizing another way shoppers could get name-brand products at steep
savings.
AMR lost $344 million in fourth quarter
DALLAS (AP) -- American Airlines ended
2009 with a loss, and now it's fighting to avoid starting the new year by
losing a valuable partner in Asia.
American CEO Gerard Arpey said
Wednesday he would use any means possible to block rival Delta from forming an
alliance with American's longtime partner, Japan Airlines. He said a Delta-JAL
tie-up would be too dominant on trans-Pacific routes.
The battle for JAL plays out against
the background of a limping domestic market. Major U.S. airlines have been
clobbered by the recession, which led to a slump in traffic and caused many
business travelers to stay home or buy cheaper tickets. Airlines haven't been
able to raise fares fast enough to make up the difference, although fees on
checked bags helped.
Gen Re paying $92.2M to settle charges
WASHINGTON (AP) -- The insurer General
Re Corp. has agreed to pay $92.2 million to settle charges by federal
authorities and shareholder claims over its alleged role in accounting
misconduct schemes by American International Group and Prudential Financial.
The Securities and Exchange Commission
and the Justice Department announced the settlements Wednesday with Gen Re,
which is part of Berkshire Hathaway Inc., the company led by billionaire
investor Warren Buffett.
Gen Re, based in Stamford, Conn., is
paying $19.5 million in a non-prosecution agreement with the Justice Department
regarding its criminal probe of Gen Re's transactions with AIG.
GOP lawmaker: NY Fed must turn over AIG
documents
WASHINGTON (AP) -- A Republican
lawmaker wants the Federal Reserve Bank of New York to turn over more documents
for a House probe into the bailout of American International Group Inc.
Rep. Darrell Issa, R-Calif., says the
New York Fed must share additional documents to satisfy a subpoena from the
House Committee on Oversight and Government Reform. Issa is the committee's top
Republican.
The committee is investigating why
officials didn't demand concessions from big banks that were owed money by AIG.
Lawmakers are asking why officials wouldn't name the banks that benefited from
AIG's "backdoor bailouts."
Amazon offers new royalty program for
Kindle books
SEATTLE (AP) -- Amazon.com Inc. said
Wednesday it will begin offering do-it-yourself authors and publishers a bigger
cut of book sales on its Kindle e-reader -- but with strings attached aimed at
keeping prices down for consumers.
The company said that starting in June,
it will offer users of its e-book self-publishing program, the Kindle Digital
Text Platform, royalties on book sales of 70 percent after delivery costs. With
those costs equaling less than 6 cents per book, Amazon said authors will be
able to earn $6.25 per copy on a book that sells for $8.99, rather than the old
rate of $3.15.
By The Associated Press
The Dow fell 122.28, or 1.1 percent, to
10,603.15. The Dow had been down as much as 208 points.
The broader S&P 500 index fell
12.19, or 1.1 percent, to 1,138.04, and the Nasdaq composite index fell 29.15,
or 1.3 percent, to 2,291.25.
Benchmark crude for February delivery
gave up $1.40 to settle at $77.62 a barrel on the last day of trading for the
contract on the New York Mercantile Exchange. Most of the trading already moved
to the March contract, which also fell $1.58 to settle at $77.74 a barrel.
In other Nymex trading in February
contracts, heating oil fell 2.43 cents to settle at $2.0211 a gallon, while
gasoline dropped 1.26 cents to settle at $2.0465 a gallon. Natural gas futures
lost 6.1 cents to settle at $5.496 per 1,000 cubic feet.
In London, Brent crude for March delivery
shed $1.31 to settle at $76.32 a barrel on the ICE Futures exchange.