AP Business Highlights

·        
Companies:

On Thursday February 11, 2010, 6:12 pm EST

WellPoint price hike defense fails to satisfy feds

INDIANAPOLIS (AP) -- Health insurer WellPoint is blaming the Great Recession and rising medical costs for its planned 39 percent rate increase for some California customers of its Anthem Blue Cross plan.

But Health and Human Services Secretary Kathleen Sebelius isn't buying the explanation proffered in a letter delivered to her Thursday.

Sebelius said "it remains difficult to understand" how premium increases of that size can be justified when WellPoint Inc. reported a $4.75 billion profit in the last quarter of 2009.

Moral support but no money, EU says to Greece

BRUSSELS (AP) -- European Union leaders faced down markets Thursday with a statement of support for Greece -- but offered no detailed bailout for a debt crisis that has plunged the euro into its deepest crisis since it was launched 11 years ago.

The 16 countries that use the euro promised to "take determined and coordinated action, if needed, to safeguard financial stability in the euro area as a whole."

But they left out any detail about what they might do to prevent the country from defaulting on its massive debt.

Jobless claims figures raise hopes for recovery

WASHINGTON (AP) -- The number of newly laid-off workers seeking unemployment benefits fell more than expected last week to the lowest total in a month, a sign the job market may be improving.

The Labor Department said that first-time claims for unemployment insurance dropped by 43,000 to a seasonally adjusted 440,000. Wall Street economists expected a smaller decline of 15,000, according to a survey by Thomson Reuters.

The jobless claims report was the first of the year that wasn't affected by a holiday backlog. The easing of the backlog had elevated the numbers for the previous three weeks. The latest figures likely provide a clearer picture of the job market.

And they raise some hopes for the economic rebound.

Stocks climb after EU pledges support for Greece

NEW YORK (AP) -- Relief about Europe's pledge to support Greece sent the stock market charging higher Thursday.

The Dow Jones industrial average jumped 106 points as confidence grew that aid to Greece would extinguish one of the several threats that investors see to an economic recovery.

The market's advance was broad-based, but energy and materials stocks logged some of the biggest gains after oil prices rose for a fourth day and a tame report on inflation in China suggested the country wouldn't have to move more aggressively to slow its economy.

FirstEnergy buying power rival Allegheny Energy

FirstEnergy said Thursday that it is buying Allegheny Energy in a $4.7 billion stock deal that will bring together two neighboring rivals to form one of the biggest power companies in the country.

The new company will be made up of 10 utilities serving 6.1 million customers from Ohio to New Jersey, with $16 billion in annual revenue and $1.4 billion in profit. The deal is expected to close within 14 months.

There haven't been many big deals in the power sector recently. The recession has made financing difficult to get and electricity demand has slumpedespecially among industrial customers. That has forced utilities to slash costs and cut projects.

PepsiCo 4th-quarter profit rises on snacks unit

NEW YORK (AP) -- PepsiCo Inc.'s fourth-quarter profit almost doubled on strength in its snacks business and overseas beverage operations, and the company said it will keep expanding internationally to buffer the slumping U.S. drinks market.

The snack and drink maker also said Thursday it expects more savings from its buyout of two of its bottlers.

PepsiCo will launch more new snack products and speed growth in developing markets, which it expects to boost revenue and profit. International sales are becoming increasingly important for beverage makers, who are facing a soft domestic market as people shift toward healthier juices and teas or cut back on purchases to save money.

Cost cuts boost Viacom 4Q but ad sales weak

LOS ANGELES (AP) -- Cost-cutting at Paramount Pictures boosted profits at media giant Viacom Inc., but advertisers remained cautious about spending money during the holiday quarter.

Ad revenue fell 3 percent overall in the three months to December on Viacom cable channels such as Nickelodeon, BET and Comedy Central. That reflected ongoing economic uncertainty that kept companies hesitant about how much to spend to entice customers.

The company, which is controlled by its executive chairman, Sumner Redstone, earned $694 million, or $1.14 per share, in the last three months of 2009. That was quadruple the $173 million, or 28 cents per share, it earned in the same period a year earlier.

Regional air safety gains questioned

WASHINGTON (AP) -- A year after the fiery crash of a regional airliner killed 50 people near Buffalo, N.Y., regulators have missed their own deadlines for overhauling pilot-fatigue rules and are still rewriting regulations to improve crew training. They also haven't done anything to address tiring long-distance commutes by regional companies' pilots.

Federal Aviation Administration chief Randy Babbitt has been talking up the safety initiatives his agency launched after the crash, declaring he's "very pleased with the progress."

But much of that progress is more illusion than reality. Despite Babbitt's claims, the FAA has failed to require improved airline safety on key fronts.

Obama report: 95,000 jobs to come each month

WASHINGTON (AP) -- The United States is likely to add an average of 95,900 more jobs each month this year, while personal savings will remain high as credit remains tight, according to a White House report released Thursday.

With the public souring on Obama's handling of the economy, the White House's Council of Economic Advisers' report trumpeted the $787 billion economic stimulus package as creating or saving some 2 million jobs. Facing a tough election season for fellow Democrats, Obama's team used its annual report to blame the economy they inherited. The report is required by law within 10 days of the White House's budget proposals.

Obama called on lawmakers to pass a jobs bill to help the economy recovery.

Oil up for 4th day on strong intl demand outlook

NEW YORK (AP) -- Crude prices continued to rise Thursday as a European energy watchdog said global oil demand will grow this year more than previously expected.

Benchmark crude for March delivery added 76 cents to settle at $75.28 a barrel on the New York Mercantile Exchange. Oil prices have been increasing since Monday.

Experts pointed out, however, that oil is rising despite -- not because of -- the U.S. economy. Americans have been consuming smaller and smaller amounts of petroleum for the past month, and demand for heating oil will only fall as Spring approaches and the weather turns milder.

What's helped drive prices higher is economic activity overseas, especially in developing countries like China.

By The Associated Press

The Dow Jones industrial average rose 105.81, or 1.1 percent, to 10,144.19. The S&P 500 index rose 10.34, or 1 percent, to 1,078.47. The Nasdaq composite index rose 29.54, or 1.4 percent, to 2,177.41.

Benchmark crude for March delivery added 76 cents to settle at $75.28 a barrel on the New York Mercantile Exchange. Oil prices have been increasing since Monday.

In other Nymex trading in March contracts, heating oil rose 1.61 cents to settle at $1.963 a gallon, and gasoline added less than a penny to settle at $1.9357 a gallon. Natural gas gained 10.4 cents to settle at $5.396 per 1,000 cubic feet.

In London, Brent crude increased 51 cents to settle at $73.05 a barrel on the ICE futures exchange.

 

Share this page

Related Headlines

Related Blog Headlines

Related Message Boards