UAW says it has tentative deal with GM, government
DETROIT (AP) -- The United Auto Workers union has agreed on a
tentative deal with the government and General Motors Corp. that would cut
labor costs, close factories and change the way a union-run trust for retiree
health care is funded.
The move is a key step toward GM's efforts to restructure outside
of bankruptcy court, but GM still needs bondholders who hold $27 billion in
unsecured debt to accept equity in the company in place of the $27 billion
they're owed. Analysts have said it is nearly impossible that the required 90
percent of bondholders will agree to the offer.
Jobs scarce with nearly 6.7M on benefit rolls
WASHINGTON (AP) -- A sign that jobs likely will remain scarce
through next year emerged Thursday in a report showing a record number of
Americans receiving unemployment aid.
And plant shutdowns by Chrysler LLC and General Motors Corp.
could further harm the economy in coming months. Economists are just starting
to assess the full impact of the auto industry's woes, which affect thousands
of suppliers and dealers.
The number of people who are continuing to receive jobless
benefits rose to nearly 6.7 million from about 6.6 million, the Labor
Department said. That's the highest total on records dating to 1967 and the
16th straight weekly record.
Stocks are pounded by worries over jobs, UK debt
NEW YORK (AP) -- Another bad signal from the job market and
concern over a possible downgrade of British government debt sent stocks
sharply lower Thursday.
Major stock indicators slid more than 1.5 percent, cutting nearly
130 points off the Dow Jones industrial average to 8,292.13, after continuing
claims for unemployment benefits set their 16th straight weekly record.
The report added to recent anxiety that the market may have moved
too high too quickly on early signs of recovery in the economy. Despite a
pullback this week, the Standard & Poor's 500 index is still up more than
30 percent from its 12-year lows in early March.
Oil drops below $61 as big rally pauses
NEW YORK (AP) -- Energy prices tumbled Thursday after the Federal
Reserve predicted that even if the worst of the recession is over, the economy
will continue to shrink this year.
Benchmark crude for July delivery fell 99 cents to settle at
$61.05 a barrel on the New York Mercantile Exchange. Prices at one point had
fallen to a penny within $60. In London, Brent prices fell 66 cents to settle
at $59.93 a barrel on the ICE Futures exchange.
The ailing economy has pushed energy prices down because
consumers and businesses have reduced spending, whether it's on commuting to
work or producing goods.
Xerox CEO Mulcahy retiring, Burns to replace her
NEW YORK (AP) -- Xerox Corp. said Thursday that Chief Executive
Anne Mulcahy will retire July 1, to be succeeded by Ursula Burns, the printer and
copier maker's president.
Xerox will become the largest U.S. company to be headed by a
black woman.
Mulcahy, 56, is credited with leading the Norwalk, Conn.-based
company out of a deep financial slump earlier in the decade. She was appointed
in 2001 after the company fired G. Richard Thoman amid mounting losses.
Barnes & Noble posts $2.7M 1Q loss as sales drop
PORTLAND, Ore. (AP) -- Barnes & Noble Inc. reported Thursday
that it lost $2.7 million in the first quarter as its sales continued a
multi-quarter slide, but the results beat Wall Street expectations and the
bookseller raised its profit forecast for the year.
Sales have been slipping away from the nation's largest bookstore
chain for some time as shoppers turn to online and discount booksellers. The
recession has compounded the problem, with consumers severely limiting spending
on discretionary items like books and music.
AP sources: Government mulls fresh aid to GMAC
WASHINGTON (AP) -- The government is close to providing auto
lender GMAC with billions of dollars in fresh aid, according to people with
familiar with the matter.
The cash infusion is intended to help the company make loans for
General Motors Corp. and Chrysler LLC vehicles. The people spoke on condition
of anonymity Thursday because they were not authorized to speak before a formal
announcement by the Treasury Department.
The move would come after GMAC failed a bank "stress
test" earlier this month, with the Treasury mandating the company raise
$11.5 billion within six months.
AIG's Liddy to depart; company to split chair, CEO
NEW YORK (AP) -- American International Group Inc. on Thursday
said its chairman and chief executive plans to step down when a search for
replacements is complete.
The company also said its board agreed with a recommendation from
Edward M. Liddy, who took over the insurer in September, to separate the
chairman and CEO roles.
AIG will start a search for permanent leadership after the
company's annual shareholder meeting June 30. At that meeting, investors will
vote on a slate of six new independent directors.
Geithner: Wall Street rescue fund not permanent
WASHINGTON (AP) -- The Treasury intends to use bank repayments of
government aid to continue assisting the financial sector, Treasury Secretary
Timothy Geithner told lawmakers Thursday even as he assured them that the $700
billion rescue fund would not become a permanent financial bailout tool.
Republican lawmakers have argued that Geithner should use the
repayments toward reducing the federal debt.
But Geithner reminded members of a House Appropriations
subcommittee Thursday that the rescue fund law, as adopted by Congress last
fall, automatically ends on Dec. 31. The law gives the Treasury secretary the
authority to extend it only nine more months.
Lenovo reports fiscal 4Q loss on lower PC demand
NEW YORK (AP) -- Lenovo Group, the world's fourth-largest
personal computer maker, on Thursday reported a fiscal fourth-quarter loss due
to falling demand for its computers.
The Beijing-based company reported a loss of $264 million, or
$2.98 per share, for the quarter that ended March 31. This compares with a
profit of $140 million, or $1.44 per share, last year.
Revenue fell 26 percent to $2.77 billion from $3.73 billion. The
company said PC shipments fell 8.2 percent year over year; in the same period,
overall shipments of PCs fell 7 percent across the industry.
By The Associated Press
the Dow fell 129.91, or 1.5 percent, to 8,292.13.
The Standard & Poor's 500 index fell 15.14, or 1.7 percent,
to 888.33, and the Nasdaq composite index fell 32.59, or 1.9 percent, to
1,695.25.
Benchmark crude for July delivery fell 99 cents to settle at
$61.05 a barrel on the New York Mercantile Exchange.
In London, Brent prices fell 66 cents to settle at $59.93 a
barrel on the ICE Futures exchange.
In other Nymex trading, gasoline for June delivery fell less than
a penny to settle at $1.7997 a gallon and heating oil dropped 1.17 cents to
settle at $1.5411 a gallon. Natural gas for June delivery slid 37.2 cents to
settle at $3.726 per 1,000 cubic feet.