WASHINGTON (AP) -- Supreme
Court Justice Ruth Bader Ginsburg on Monday delayed Chrysler's sale of most of
its assets to a group led by Italy's Fiat, but didn't say how long the deal
will remain on hold.
Ginsburg said in an order
that the sale is "stayed pending further order," indicating that the
delay may only be temporary.
Chrysler LLC has said the
sale must close by June 15, or Fiat Group SpA has the option to walk away,
leaving the Auburn Hills, Mich., automaker with little option but to liquidate.
Obama, facing high
unemployment, defends stimulus
WASHINGTON (AP) -- Eager to
show action on the ailing economy, President Barack Obama promised Monday to
speed federal money into hundreds of public works projects this summer, vowing
that 600,000 jobs would be created or saved.
Responding to persistently
high unemployment figures and criticism that the stimulus was not worth its
historic price tag, the president argued his recovery plan was on track. But
his fresh promises were largely political theater: The jobs goal was set a
month ago, and the list of projects Obama announced were already in the
pipeline.
Stocks reverse losses as
commodities end off lows
NEW YORK (AP) -- Investors
might be worried about the soundness of the market's rally but they're also
worried about missing it.
Stocks reversed steep losses
in the final hour of trading Monday to end little changed. The Dow Jones
Industrial average recovered from a 130-point slide to end up a little more
than 1 point at 8,764.49.
The day offered little
economic and corporate news to guide investors. Add in light trading volume,
and traders said the mix was right for volatility.
Oil rally stalls; prices
hover around $68
SIOUX FALLS, S.D. (AP) --
Oil prices fell Monday as a four-month rally that has roughly doubled the price
of crude lost some steam alongside the stock markets.
Benchmark crude for July
delivery fell 35 cents to settle at $68.09 a barrel on the New York Mercantile
Exchange. Prices dropped as low as $66.78.
Crude prices have risen in
tandem with stocks as gloom about the global economy eases. Oil briefly broke
the $70 threshold Friday after the U.S. Labor Department reported that
employers cut 345,000 jobs in May, the fewest since September.
GM says it will stop making
medium-duty trucks
DETROIT (AP) -- After
unsuccessfully trying to find a buyer for four years, General Motors Corp. is
giving up on its medium-duty truck business, saying that it will wind down
manufacturing by the end of July.
That means GM will stop
making the GMC Topkick and Chevrolet Kodiak commercial trucks at its Flint,
Mich., Assembly Plant by July 31. The plant employs 2,100 people but also makes
Chevrolet Silverado and GMC Sierra pickups.
Company spokesman Jim Hopson
said 398 people work on the medium-duty assembly line, and GM is working with
the United Auto Workers union to determine what happens to them.
McDonald's May same-store
sales rise 5.1 percent
NEW YORK (AP) -- McDonald's
Corp. said Monday its same-store sales climbed 5.1 percent in May, boosted by
strong international sales but weighed down by slower sales growth in the U.S.
The Oak Brook, Ill.-based
company said U.S. same-store sales climbed 2.8 percent, helped by classic menu
items and its new McCafe espresso-based coffees. The espresso drinks are now
being rolled out to all the company's U.S. restaurants.
In May last year, the
company's same-store sales rose 4.3 percent in the U.S., aided by the launch of
the company's Southern Style Chicken Sandwich and the government stimulus
checks that began appearing in consumers' mailboxes and bank accounts.
US trading partners complain
about protectionism
WASHINGTON (AP) --The United
States' largest trading partners are warning that protectionist moves by
Congress could poison global trade relations, despite President Barack Obama's
assurances that he wants to keep U.S. markets open.
Businesses in the European
Union and Canada complain they have been shut out of U.S. markets because of
the "Buy American" provision in the massive stimulus bill, passed in
February, which requires the use of U.S.-manufactured products.
EU and Canadian officials
worry the practice is widening, as Congress is considering adding similar
measures to other spending bills.
World airlines seen losing
$9 billion this year
KUALA LUMPUR, Malaysia (AP)
-- The world's airlines will collectively lose $9 billion this year -- nearly
double the previous projections -- and face a slow recovery as the economic
crisis saps air travel and cargo demand, an industry body warned Monday.
The International Air
Transport Association, which represents 230 airlines worldwide, increased its
loss estimate from the $4.7 billion it forecast in March, reflecting a
"rapidly deteriorating revenue environment."
Weak consumer confidence,
high business inventories and rising oil prices pose headwinds for future
recovery, the association said during a two-day global aviation conference.
Accounting oversight board
chairman resigns
WASHINGTON (AP) -- The head
of the independent board overseeing the accounting industry said Monday that he
will resign more than a year before his term is set to expire.
Mark W. Olson has been
chairman of the Public Company Accounting Oversight Board since July 2006. The
board was created by Congress in response to the 2002 corporate scandals that
began with Enron.
Olson whose resignation
takes effect July 31, said the decision "is entirely personal and reflects
my desire at this time of life to establish new priorities." His term
expires in October 2010.
Lloyds bank gets 87 pct
takeup on share offer
LONDON (AP) -- Lloyds
Banking Group PLC said Monday that it has placed 4 billion pounds ($6.35
billion) of shares which will enable it to make a partial repayment of
government support.
The auction maintained the
government's stake in Lloyds at 43.4 percent of its ordinary shares. The
government's preference shares -- which do not carry votes but pay interest --
will be redeemed, saving Lloyds 480 million pounds a year.
The government will net 2.7
billion pounds from the transaction, the bank said, making it the first British
bank to repay part of its bailout.
By The Associated Press
The Dow rose 1.36, or less
than 0.1 percent, to 8,764.49. The Standard & Poor's 500 index slipped
0.95, or 0.1 percent, to 939.14, and the Nasdaq composite index fell 7.02, or
0.4 percent, to 1,842.40.
Benchmark crude for July
delivery fell 35 cents to settle at $68.09 a barrel on the New York Mercantile
Exchange.
In other Nymex trading,
gasoline for July delivery fell 1.85 cents to settle at $1.936, while heating
oil fell less than a penny to settle at $1.7679. Natural gas for July delivery
fell 13.7 cents to settle at $3.731 per 1,000 cubic feet
In London, Brent prices fell
46 cents to settle at $67.88 a barrel on the ICE Futures exchange.