Job losses up in 44 states as recession drags on
WASHINGTON (AP) -- All but
six states lost jobs in April and double-digit unemployment persisted in every
corner of the country as companies squeezed by the recession slashed payrolls.
For the fifth straight
month, California led the nation in net job losses, with 63,700 jobs
disappearing in April. Among the handful of winners were Arkansas, Montana and
Florida -- a state battered by the housing collapse and badly in need of good
news.
Michigan, the heart of the
teetering American auto industry, posted the highest unemployment rate in the
nation, 12.9 percent, the Labor Department said Friday. Oregon came in at 12
percent, South Carolina at 11.5 percent and Rhode Island at 11.1 percent.
Stocks lose grip on early
gains, close lower
NEW YORK (AP) -- Wall Street
reversed course late in the day, finishing lower as early gains built on better
earnings reports from retailers faded away.
Trading was choppy, and the
market's swings were exaggerated by light volume ahead of the Memorial Day
weekend.
Stocks drifted lower for
much of the week. With few economic reports coming out, the market was left
with little fuel to sustain a two and a half-month surge that has lifted stocks
up more than 30 percent from 12-year lows in early March. The Dow Jones
industrial average fell 14.81, or 0.2 percent, to 8,277.32.
Obama signs law curbing
surprise credit card fees
WASHINGTON (AP) -- President
Barack Obama warned overeager shoppers and greedy credit card companies alike
on Friday to act responsibly as he signed into law a bill designed to protect
debt-ridden consumers from surprise charges.
The White House staged a
signing ceremony in the Rose Garden, an indication of the legislation's
importance to Obama. Though opposed by many financial companies, the bill
cleared Congress with broad support.
Obama made clear that he
didn't champion the changes with the intention of helping those who buy more
than they can afford through "reckless spending or wishful thinking."
Gasoline prices swing higher
before holiday
NEW YORK (AP) -- Retail
gasoline prices continued to climb Friday ahead of the Memorial Day weekend and
the unofficial start of America's summer driving season.
The national average pump
price increased nearly 3 cents overnight to $2.391 a gallon, according to auto
club AAA, Wright Express and Oil Price Information Service. Gasoline prices
ticked higher every day this month.
Gas prices surged higher
though a crude rally appears to have stalled.
Benchmark crude for July
delivery rose 62 cents to settle at $61.67 a barrel in light, pre-holiday
trading on the New York Mercantile Exchange. In London, Brent prices increased
85 cents to settle at $60.78 a barrel on the ICE Futures exchange.
FDIC: new fee system to
replenish insurance fund
WASHINGTON (AP) -- Federal
regulators on Friday adopted a new system of special fees paid by U.S.
financial institutions that will shift more of the burden to bigger banks to
help replenish the deposit insurance fund.
The move by the Federal
Deposit Insurance Corp. cut by about two-thirds the amount of special fees to
be levied on banks and thrifts. It followed protests by small and community
banks -- with powerful allies in Congress -- against a plan adopted in February
that charged premiums based on the amount of deposits. The smaller institutions
insisted they would be unfairly hit even though they didn't contribute to the
financial crisis with reckless lending.
GMAC receives $7.5B in new
Treasury aid
NEW YORK (AP) -- The U.S.
government could eventually own a majority stake in GMAC Financial Services
following its latest $7.5 billion aid package to the ailing auto financing
company.
To keep loans flowing to
would-be buyers of GM and Chrysler vehicles and shore up its capital position,
the Treasury Department agreed Thursday to provide GMAC with $7.5 billion in
loans. The new aid marks the second time the government has stepped in to prop
up the former lending unit of General Motors Corp.
In addition, the Federal
Deposit Insurance Corp. took the rare step of allowing the low-rated company to
gain access to its debt guarantee program.
CAW has tentative labor deal
with GM Canada
TORONTO (AP) -- After two
weeks of round-the-clock negotiations, the Canadian Auto Workers union has
agreed to another cost-cutting deal with General Motors Canada in its bid to
qualify for government loans to stave off liquidation, the head of the union
said Friday.
Union leader Ken Lewenza
said the CAW was pressured into a deal after the United Auto Workers agreed
Thursday to a tentative deal with the U.S. government and GM Canada's parent
company, General Motors Corp.
Lewenza said the deal allows
GM Canada to meet the cost benchmarks set by the Canadian and American
governments, namely that the automaker make concessions to become
cost-competitive with Toyota Canada. The deal also stipulates that GM's car
assembly and parts plants in the southern Ontario communities of Oshawa, St.
Catharines and Woodstock will stay open.
With Liddy leaving, AIG
revamp reaches new phase
NEW YORK (AP) -- After
creating a plan to radically alter American International Group Inc.'s
operations to help repay billions in government loans, chairman and chief
executive Edward Liddy is leaving his vision for the insurer in the hands of a
whole new set of managers.
On Thursday, Liddy said he
was stepping down from both roles at a time when AIG will add six new directors
to its board and is reshaping itself by spinning off or selling large parts of
its operations.
With a major shake-up among
its decision makers, new management will have the opportunity to continue with
Liddy's plan to further reshape the company, or put their own stamp on how to
create a leaner, more efficient AIG.
Cigarette makers lose appeal
in landmark case
WASHINGTON (AP) -- A federal
appeals court on Friday agreed with the major elements of a 2006 landmark
ruling that found the nation's top tobacco companies guilty of racketeering and
fraud for deceiving the public about the dangers of smoking.
A three-judge panel of the
U.S. Court of Appeals in Washington unanimously upheld requirements that
manufacturers change the way they market cigarettes. The requirements, which
have been on hold pending appeal, would ban labels such as "low tar,"
"light," "ultra light" or "mild," since such
cigarettes have been found no safer than others.
British Airways suffers
record full-year loss
LONDON (AP) -- British
Airways on Friday reported its biggest full-year loss since the former national
airline was privatized in 1987, mainly due to soaring fuel costs and weaker
demand in recent months.
The company lost 375 million
pounds ($595 million) in the year ending March 31, compared with a profit of
712 million pounds in the previous year. That is its worst result in more than
two decades of business, the previous low point being a 200 million pounds loss
in 2001-2002.
By The Associated Press
The Dow Jones industrial
average fell 14.81, or 0.2 percent, to 8,277.32. The S&P 500 index slipped
1.33, or 0.2 percent, to 887.00, and the Nasdaq composite index lost 3.24, or
0.2 percent, to 1,692.01.
Benchmark crude for July
delivery rose 62 cents to settle at $61.67 a barrel in light, pre-holiday
trading on the New York Mercantile Exchange.
In London, Brent prices
increased 85 cents to settle at $60.78 a barrel on the ICE Futures exchange.
In other Nymex trading,
gasoline for June delivery rose 4.11 cents to settle at $1.8408 a gallon and
heating oil added less than a penny to settle at $1.538 a gallon. Natural gas
for June delivery dropped 8.8 cents to settle at $3.515 per 1,000 cubic feet.