AP Business Highlights

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On Thursday February 4, 2010, 5:55 pm EST

Toyota checks 2010 Prius brakes; no word on recall

WASHINGTON (AP) -- Toyota said Thursday it is evaluating brake problems with the 2010 Prius gas-electric hybrid, but no decision has been made about a recall.

Earlier Thursday, the National Highway Traffic Safety Administration said it opened an investigation into the car, the best selling hybrid in the U.S., citing 124 reports it received from consumers about its brakes, including four crashes. The government is looking into complaints that antilock brakes can fail momentarily on some 2010 models in slippery conditions or on rough roads.

The company says it made a change in the 2010 braking system last month to correct cars in production. The company has not made a decision about cars on the road.

Stocks tumble on worries about jobs, European debt

NEW YORK (AP) -- Stocks buckled Thursday under the growing belief that the global economy is weaker than many investors expected and likely to stop companies from hiring. The Dow Jones industrials briefly traded below 10,000 for the first time in three months.

A flood of bad news, including rising debt levels in European nations and an unexpected jump in the number of Americans filing for unemployment benefits, had investors pulling money out of assets like stocks and commodities that look increasingly risky. Fears of more disappointing news Friday, when the government issues its January employment report, contributed to the slide.

The Dow fell 268.37, or 2.6 percent, to 10,002.18. The Dow has fallen 723 points, or 6.7 percent, since closing at a 15-month high of 10,725.43 on Jan. 19.

New York AG filing civil charges against BofA

NEW YORK (AP) -- The New York Attorney General's office said Thursday it filed civil charges against Bank of America and its former CEO Ken Lewis, saying the bank misled investors about Merrill Lynch before it acquired the Wall Street bank in early 2009.

Civil charges were also being filed against Joe Price, who was chief financial officer at the time of the deal and is now head of BofA's consumer banking division.

At the same time Attorney General Andrew Cuomo's office was filing its civil charges, the Securities and Exchange Commission reached a settlement to resolve federal charges it brought against the bank over similar issues. It is the second time the SEC and Bank of America have tried to settle that case.

Companies boost productivity and put off hiring

WASHINGTON (AP) -- Employers are managing to boost production without creating new jobs. The question is when they'll feel the need to ramp up hiring.

Squeezing more output from their existing staffs allowed companies to boost productivity in the October-December quarter. And last week, the number of people filing new claims for jobless aid rose. The two Labor Department reports Thursday suggested that companies are still cutting costs and putting off hiring even as the economy recovers.

Many employers lack confidence that the recovery is sustainable, especially as government stimulus measures fade, economists said. Companies still feel bruised from the recession.

Retailers report solid gains in key figure for Jan

NEW YORK (AP) -- Wealthier shoppers went on a buying binge in January and even middle-income Americans spent a little more, retailers said Thursday. Some chains reported their brightest monthly results in years.

The prospects for many stores' fourth-quarter profit also brightened further. Macy's, Gap Inc., Children's Place Retail Stores Inc. and others raised their outlooks Thursday, because they didn't have to discount as heavily to sell what they ordered for the holiday season and their total sales rose.

Compared with a sharp drop last year in January sales at stores open a least a year, the strong performances offered a nice finish to the industry's fiscal year, which typically ends in January.

New ketchup packet allows for dunking or squeezing

For decades there was only one way to use the humble ketchup packet, and it was messy. Now, thanks to a redesign by Heinz, fast-food lovers have a choice: the traditional squeeze play -- or the option to dunk.

You want fries with that, in the minivan? No problem.

The redesigned ketchup pack, unveiled Thursday by H.J. Heinz Co., is shaped like a shallow cup. The top can be peeled back for dipping, or the end can be torn off for squeezing. It holds three times as much ketchup as a traditional packet.

Heinz struggled for years to develop a container that lets diners dip or squeeze, and to produce it at a cost that is acceptable to its restaurant customers.

Energy prices swoon on bleak jobs data, stocks

NEW YORK (AP) -- Energy prices dropped Thursday as dismal job news, a sinking stock market and a lower-than-expected draw on natural gas supplies dimmed hopes for stronger energy demand.

Benchmark oil for March delivery fell $3.84 to settle at $73.14 a barrel on the New York Mercantile Exchange. It was the biggest one-day drop in four months.

In London, Brent crude for March delivery shed $3.79 to settle at $72.13 a barrel on the ICE Futures exchange.

Natural gas prices lost 0.3 cent to settle at $5.416 per 1,000 cubic feet, after the Energy Information Administration said that the country's glut of natural gas only dropped by 115 billion cubic feet. Analysts expected it to shrink much more.

House Democrats challenge Comcast, NBC on deal

WASHINGTON (AP) -- Congressional Democrats challenged executives from Comcast Corp. and NBC Universal on Thursday to show that the cable TV operator's plan to take control of the entertainment company won't hurt consumers and rivals.

In back-to-back hearings, members of House and Senate subcommittees expressed concern that the transaction could lead to such competitive harms as higher cable TV rates and fewer video programming choices.

Comcast is seeking federal approval to acquire a 51 percent stake in NBC Universal from General Electric Co. The Justice Department and the Federal Communications Commission are expected to sign off, but likely with conditions. Input from Congress could sway the outcome of those regulatory reviews.

S&P cuts Berkshire's rating, cites Burlington deal

OMAHA, Neb. (AP) -- Standard & Poor's has followed through on its warning and lowered Berkshire Hathaway Inc.'s long-term credit rating Thursday as the Omaha firm readies to acquire Burlington Northern Santa Fe Corp.

The ratings agency lowered Berkshire's rating one notch to "AA+" from "AAA," its highest designation.

S&P also removed the ratings from CreditWatch, where they were placed with negative implications in November, and called the outlook stable.

Berkshire Hathaway officials didn't immediately respond to a request for comment.

GlaxoSmithKline Q4 profit up 66 pct

LONDON (AP) -- GlaxoSmithKline PLC, the world's second largest drug maker by revenue, reported Thursday that its fourth-quarter profit soared by 66 percent, boosted by strong sales of swine flu vaccine and flu medicine.

In the three months ending Dec. 31, Glaxo turned a net profit of 1.63 billion pounds ($2.6 billion), compared to 982 million pounds a year earlier. The strong finish pushed full-year profits up 20 percent to 5.5 billion pounds.

Sales of Relenza, the company's drug for treating flu, totaled 720 million pounds for the year, compared to just 57 million pounds in 2008. In the fourth quarter, Relenza sales rose to 256 million pounds from 13 million pounds a year earlier.

By The Associated Press

The Dow fell 268.37, or 2.6 percent, to 10,002.18. The Dow has fallen 723 points, or 6.7 percent, since closing at a 15-month high of 10,725.43 on Jan. 19.

The broader Standard & Poor's 500 index fell 34.17, or 3.1 percent, to 1,063.11, its steepest drop since April 20, 2009.

The Nasdaq composite index slid 65.48, or 3 percent, to 2,125.43.

Benchmark oil for March delivery fell $3.84 to settle at $73.14 a barrel on the New York Mercantile Exchange. It was the biggest one-day drop in four months.

In London, Brent crude for March delivery shed $3.79 to settle at $72.13 a barrel on the ICE Futures exchange.

Natural gas prices lost 0.3 cent to settle at $5.416 per 1,000 cubic feet, after the Energy Information Administration said that the country's glut of natural gas only dropped by 115 billion cubic feet. Analysts expected it to shrink much more.

In other Nymex trading in March contracts, heating oil fell 8.42 cents to settle at $1.9352 a gallon, while gasoline dropped 8.54 cents to settle at $1.9508 a gallon.

 

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