On Monday June 14, 2010, 6:02 pm EDT
Moody's downgrades Greece's debt to
junk status
LONDON (AP) -- Moody's Investors
Service on Monday downgraded Greece's government bond ratings into
"junk" territory, citing the risks in the rescue package for the
debt-ridden country from the Eurozone and International Monetary Fund.
Moody's cut the rating by four notches,
to "Ba1" from "A3," and also downgraded Greece's short-term
issuer rating to "Not-Prime" from "Prime."
The downgrades reflects concern that
the country could fail to meet its obligations to cut its deficit and pay down
its debt. While the support package does create a credible set of reforms, the
lower rating is consistent with the risks associated with it, Moody's said.
BP shares and shareholders under more
pressure
BP shareholders who have already lost
billions because of the spill in the Gulf of Mexico now must deal with the
federal government's demand that the oil company set up a multibillion-dollar
fund to help victims of the spill.
That potential fund and the possibility
that BP could forgo its second-quarter dividend drove the stock down again
Monday after a small rebound at the end of last week. BP shares fell $3.30, or
9.7 percent, to close at $30.67 in New York. The shares were worth $60.48 when
the Transocean rig it was leasing exploded on April 20 and later sank. BP has
lost about $90 billion in value.
Transocean shares dropped $2.07, or 4.4
percent, to close at $44.78.
Stocks falter in last hour; trader
anxiety sets in
NEW YORK (AP) -- Stocks faltered in the
last hour of trading Monday after investors gave in to anxiety about Europe's
economy.
The Dow Jones industrial average erased
an early gain of 118 points to end down 20 points at 10,190.89. The Standard
& Poor's 500 also fell slightly, while the Nasdaq composite rose less than
a point.
Stocks began the day higher following a
report that industrial production in the 16 countries that use the euro grew
more than expected in April. That boosted confidence that Europe could solve
its debt problems and pushed the euro above $1.22 for the first time since June
4.
Cablevision in $1.4B deal for cable co.
Bresnan
Cablevision Systems Corp. said Monday
it will pay $1.4 billion to expand far beyond its focus in the New York City
area with the purchase of Bresnan Communications, a mid-sized cable TV provider
in the West.
Cablevision will borrow most of what it
needs to fund the deal, which comes at a steep price and casts some uncertainty
over the widespread belief that Cablevision has been priming itself for a sale.
Cablevision spun off its Madison Square Garden business in February, and
acquiring another business typically isn't something a company for sale would
do.
Starbucks: Free Wi-Fi at 6,700 US sites
CHICAGO (AP) -- Starbucks Corp. will
begin offering unlimited free wireless Internet access at all company-operated
U.S. locations starting July 1, part of an ongoing effort to bring more
customers in the door.
The Wi-Fi access, which will eventually
include a new network of news and entertainment content exclusively for customers,
comes as Starbucks works to take business back from rivals like McDonald's
Corp. and independent cafes that have long offered free Internet.
The cafe chain, which recorded its
first quarterly increase in customers in 13 quarters earlier this year, had
previously offered two free hours of Web access each day to registered
customers.
Sara Lee says CEO is recovering from
stroke
DOWNERS GROVE, Ill. (AP) -- Sara Lee
Corp.'s CEO Brenda Barnes is recovering from a stroke, the food maker said
Monday.
Last month the company said Barnes, 56,
would take a temporary medical leave but declined to specify the reason.
CFO Marcel Smits is handling CEO duties
until Barnes returns.
Sara Lee said it would provide an
update on Barnes' condition and plans by its fiscal fourth-quarter earnings
call Aug. 12.
Board member James Crown has taken over
Barnes' role as chairman.
Gettelfinger says organizing fight will
go on
DETROIT (AP) -- United Auto Workers
President Ron Gettelfinger said Monday the union will continue to fight for
federal card-check legislation that would make it easier for workers to
organize, a high priority for the UAW as it continues to lose thousands of
members.
In his final speech to the UAW after
eight years as president, Gettelfinger also urged members to back
union-friendly candidates in the November elections, saying conservative
politicians showed their contempt for the UAW last year when they opposed the
government's bailout of General Motors Co. and Chrysler Group LLC.
Report: Employers to see 2011 medical
costs jump
INDIANAPOLIS (AP) -- Companies that
offer employee health insurance expect another steep jump in medical costs next
year, and more will ask workers to share a bigger chunk of the expense,
according to a new PricewaterhouseCoopers report.
For the first time, most of the
American work force is expected to have health insurance deductibles of $400 or
more, the consulting firm said in a report released to The Associated Press.
Deductibles are the annual amount a
patient pays out of pocket for care before insurance coverage starts. They are
generally separate from co-payments and coinsurance.
Federal judge approves $72M insurance
settlement
NEW HAVEN, Conn. (AP) -- A federal
judge has given preliminary approval to a settlement under which The Hartford
Financial Services Group Inc. will pay $72.5 million to more than 21,000 people
nationwide who alleged the insurer engaged in fraud in settling their injury
claims.
U.S. District Court Judge Janet C. Hall
approved the agreement last week in Bridgeport to resolve the class action
lawsuit. It was announced Monday by attorneys for those who sued.
The plaintiffs alleged The Hartford
engaged in fraudulent settlement practices by deducting up to 15 percent of the
value of their settlements in undisclosed annuity costs.
Pickup sales picking up and economy
hitches a ride
NEW YORK (AP) -- If you want a hint
about the economic recovery, follow that truck.
Pickups are a kind of rugged indicator
of the nation's financial health. When times are good, contractors buy more of
them to carry tools around for landscaping and lumber to build homes. Weekend
haulers also gravitate to them even though cars get better mileage.
And lately sales have started shifting
into a higher gear. Americans bought 151,000 pickups last month, 19 percent
more than a year ago. Sales of full-size pickups, especially popular among
contractors and builders, grew even faster.
By The Associated Press
The Dow fell 20.18, or 0.2 percent, to
10,190.89. The Dow hasn't risen three straight days since April.
The S&P 500 index fell 1.97, or 0.2
percent, to 1,089.63, while the Nasdaq composite index rose 0.36, or less than
0.1 percent, to 2,243.96.
Benchmark crude for July delivery rose
$1.34 to settle at $75.12 a barrel on the New York Mercantile Exchange.
In other Nymex trading in July
contracts, heating oil rose 1.97 cents to settle at $2.0250 a gallon, and
gasoline gained 2.67 cents to settle at $2.0764 a gallon. Natural gas jumped
22.5 cents to settle at $5.006 per 1,000 cubic feet.
Brent crude gained 85 cents to settle
at $75.20 a barrel on the ICE futures exchange.
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