AP Business Highlights

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On Monday February 1, 2010, 5:47 pm EST

Toyota tells dealers parts on way to fix pedals

WASHINGTON (AP) -- Toyota Motor Corp. said Monday its dealers should get parts to fix a sticky gas pedal problem by the end of this week as the automaker apologized to customers and tried to bring an end to a recall that has affected 4.2 million vehicles worldwide.

The company said in a statement that it has begun shipping parts and is training dealers on the repairs. Some dealers will stay open around the clock to fix the 2.3 million cars and trucks affected by the recall in the U.S.

Technical bulletins on how to install the new parts should arrive at dealers by midweek, the company told dealers in an e-mail. It was not clear exactly when repairs would start, although dealers have said they'll begin as soon as possible.

Obama unveils 2011 budget with $3.83T in spending

WASHINGTON (AP) -- President Barack Obama unveiled a multitrillion-dollar spending plan Monday, pledging an intensified effort to combat high unemployment and asking Congress to quickly approve new job-creation efforts that would boost the deficit to a record-breaking $1.56 trillion.

Obama's new budget blueprint preaches the need to make tough choices to restrain runaway deficits, but not before attacking what the administration sees as the more immediate challenge of lifting the country out of a deep recession that has cost 7.2 million jobs over the past two years.

Factory activity fueling modest economic recovery

NEW YORK (AP) -- Hopes that America's factories will help drive the economic recovery gained support Monday from news that manufacturing activity grew in January to its strongest point since 2004.

Other reports Monday offered a reminder that the recovery remains fragile. Construction spending sank in December to its lowest level in more than six years. And gains in personal income and spending were too modest in December to suggest that consumers can fuel a strong rebound.

Manufacturing activity has become a pocket of strength, though some of it flows from temporary factors such as customers needing to add to depleted stockpiles of goods.

Stocks climb as manufacturing, spending increase

NEW YORK (AP) -- Encouraging economic reports lifted stocks Monday and bolstered hopes that the recovery is in better shape than many had believed.

The Dow Jones industrial average rose 118 points after falling in the final two days of last week. Energy stocks led the market higher following a strong earnings report from Exxon Mobil Corp.

Gains in manufacturing and personal incomes helped shore up the market's sentiment after three straight losing weeks that left stocks with a loss for January. Investors were already becoming more optimistic thanks to news on Friday that the economy grew at the fastest pace in six years in the final three months of 2009.

The Dow rose 118.20, or 1.2 percent, to 10,185.53, its biggest gain since Jan. 4.

Exxon Mobil posts lowest annual profit since '02

NEW YORK (AP) -- Exxon Mobil's earnings fell by more than half to $19.3 billion in 2009, the lowest total in seven years, as company refineries struggled with a plunge in global fuel consumption. But Exxon remains the profit champion among U.S. public companies.

The world's largest publicly traded oil company finished the year with a 23 percent decline in fourth-quarter income. Exxon now has posted lower profits for five straight quarters after setting a record of $14.83 billion in the third quarter of 2008.

Like rivals ConocoPhillips and Chevron, Exxon's business of exploring for and producing oil benefited from an increase in crude prices at the end of 2009. But weak demand for gasoline, heating oil and other products severely depressed profits at the major oil companies' refineries.

Treasury Dept. projects $392B in 1Q borrowing

WASHINGTON (AP) -- The Treasury Department says it expects to borrow $392 billion in the current quarter to help finance the largest annual budget deficit in history.

The projection is $86 billion lower than an estimate the department issued in November, when it expected to borrow $478 billion. The improvement is largely due to higher-than-expected repayments of about $90 billion in bailout funds by large banks.

The department also says it borrowed $260 billion in last year's fourth quarter, below an earlier estimate of $276 billion. Treasury expects to borrow $268 billion in the second quarter of this year.

Lower gasoline prices vary widely across US

The two-week drop in oil prices is paying off for drivers in some parts of the country more than others.

Retail gasoline prices have now fallen for 19 straight days to a national average of $2.669 per gallon. State averages are 10 to 15 cents lower a gallon in many parts of the Midwest and South, and locally prices may as low as $2.25 per gallon, said Tom Kloza of the Oil Price Information Service.

Different tax rates from state to state are part of the reason for a wide range of prices. Wholesale prices also can vary considerably throughout the country, with prices at $1.86 per gallon in Chicago and $2.01 per gallon in Los Angeles Monday afternoon, Kloza said.

FDA liver risk warning for Bristol-Myers HIV drug

WASHINGTON (AP) -- Federal health officials said Monday that patients taking a Bristol-Myers Squibb drug for HIV are at risk of a rare, but potentially fatal, liver disorder.

The Food and Drug Administration said it has received 42 reports of the disorder since Videx was approved in 1991. Four patients died from bleeding or liver failure after developing the problem, known as non-cirrhotic portal hypertension.

The problem involves dangerously slow blood flow though the liver, which can cause veins in the esophagus to swell. These veins are thin and can cause burst, causing potentially deadly bleeding.

FAA proposes $2.5 million penalty against Eagle

DALLAS (AP) -- Federal regulators are proposing a penalty of nearly $2.5 million against a sister carrier of American Airlines for not making sure crews had accurate information about the weight of baggage on dozens of flights.

The Federal Aviation Administration announced the penalty Monday against AMR Corp.'s American Eagle.

Incorrect takeoff weights are considered a safety hazard if pilots rely on faulty information when determining the right speed for takeoff and landing.

The FAA charges that Eagle operated at least 39 flights after being told of the problem. On at least two flights, the FAA charges, Eagle planes should not have taken off because they were too heavy.

Obama seeks 12 percent budget increase for SEC

WASHINGTON (AP) -- President Barack Obama is seeking a 12 percent budget increase for the Securities and Exchange Commission, including $382 million for more than 100 new enforcement staff to work on the agency's burgeoning caseload targeting fraud and market manipulation.

The request to Congress Monday for nearly $1.3 billion for the SEC in the budget year starting Oct. 1 would boost total staff to 4,190 from the current 3,800 at the traditionally low-profile agency, which was rocked by its failure to detect the massive 16-year fraud by money manager Bernard Madoff.

The request includes a 10.6 percent increase in enforcement attorneys and investigators, to 1,368.

By The Associated Press

The Dow rose 118.20, or 1.2 percent, to 10,185.53, its biggest gain since Jan. 4. The broader Standard & Poor's 500 index rose 15.32, or 1.4 percent, to 1,089.19. The Nasdaq composite index rose 23.85, or 1.1 percent, to 2,171.20.

Benchmark crude for March delivery rose $1.54 to settle at $74.43 a barrel in trading on the New York Mercantile Exchange.

In other Nymex trading in March contracts, heating oil rose 4.19 cents to settle at $1.9549 a gallon and gasoline added 1.87 cents to settle at $1.9321 a gallon. Natural gas rose 30.3 cents to settle at $5.434 per 1,000 cubic feet.

In London, Brent crude rose $1.65 to settle at $73.11 on the ICE futures exchange.

 

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