Study: Detroit gains some ground in auto quality
NEW YORK (AP) -- J.D. Power and Associates' closely watched study
of vehicle quality found Monday that Ford, General Motors and Chrysler made strides
last year but still lag behind their foreign competitors.
At a time when Detroit is desperate to start turning out cars and
trucks that people want to buy, the top two brands in the J.D. Power study were
foreign cars: Lexus, Toyota's luxury line, and the Porsche. GM's Cadillac
finished third.
The survey measures mechanical and design problems that show up
in the first 90 days of ownership. The 2009 models turned out by the Detroit
Three improved by an average of 10 percent, compared with an industry average
of 8 percent.
World Bank cuts 2009 global growth forecast
BEIJING (AP) -- The World Bank has cut its 2009 global growth
forecast, saying the world economy will shrink by 2.9 percent and warning that
a drop in investment in developing countries will increase poverty.
Global trade is expected to plunge by 9.7 percent this year,
while total gross domestic product for high-income countries contracts by 4.2
percent, the bank said. It said economic growth in developing countries should
slow to 1.2 percent -- but excluding relatively strong China and India,
developing economies will contract by 1.6 percent.
The bank's latest forecast is a sharp reduction from its March
prediction of a 1.7 percent global contraction, which it said then would be the
worst on record.
Stocks tumble on bleak outlook for world economy
NEW YORK (AP) -- A surprisingly bleak forecast for the world
economy pushed stocks to their biggest loss in two months.
Major stock indexes tumbled by more than 2 percent Monday,
sending the Dow Jones industrial average down 201 points 8,339.01, after the
World Bank estimated the global economy will shrink 2.9 percent in 2009. It
previously predicted a 1.7 percent contraction.
The grim assessment punctured hopes being built up over the past
few months that the economy was starting to emerge from recession. Investors
began driving stocks sharply higher in early March, encouraged by modest
improvements in housing, manufacturing and even unemployment.
SEC charges Madoff-linked firm, adviser with fraud
WASHINGTON (AP) -- Federal regulators on Monday charged a New
York brokerage firm said to be secretly controlled by Bernard Madoff and a
prominent California investment adviser with securities fraud, accusing them of
funneling billions of dollars from investors into Madoff's Ponzi scheme.
The Securities and Exchange Commission announced civil fraud
charges against Cohmad Securities Corp., its chairman, Maurice
"Sonny" Cohn, his daughter, Chief Operating Officer Marcia Cohn, and
vice president and broker Robert Jaffe. Named in a second SEC lawsuit was
investment adviser Stanley Chais, a longtime Beverly Hills philanthropist, who
allegedly oversaw three funds that invested all of their assets -- nearly $1
billion -- with Madoff.
Apple: More than 1M new-model iPhones sold
NEW YORK (AP) -- Apple Inc. sold more than a million units of its
latest iPhone model in the first three days, making it the most successful
debut for a smart phone yet.
The iPhone 3G S went on sale Friday in the U.S. and seven other
countries.
When Apple Inc. launched the previous model last year, it also
sold one million units in the first three days, but that model launched
simultaneously in 22 countries.
Walgreen fiscal 3Q profit falls 9 percent
NEW YORK (AP) -- Drugstore operator Walgreen Co. said Monday its
profit fell 9 percent in the fiscal third quarter despite improving sales as
greater expenses, including those related to its reorganization efforts,
reduced its income.
Deerfield, Ill.-based Walgreen aims to cut its annual expenses by
$1 billion starting in 2011, which is adding to its costs this year. In the
quarter ended May 31, it earned $522 million, or 53 cents per share, down from
$572 million, or 58 cents per share.
Analysts were expecting 56 cents per share, according to a poll
by Thomson Reuters. Revenue grew 8 percent to $16.21 billion from $15.02
billion. Analysts forecast $16.16 billion in revenue, on average.
Obama signs anti-smoking bill, cites own struggle
WASHINGTON (AP) -- President Barack Obama cited his own long
struggle to quit the cigarettes he took up as a teenager as he signed the
nation's strongest-ever anti-smoking bill Monday and praised it for providing
critically needed protections for future generations.
The bill marks the latest legislative victory for Obama's first
five months. Among his other successes: a $787 economic stimulus bill,
legislation to expand a state program providing children's health insurance and
a bill making it easier for workers to sue for pay discrimination.
Gas prices finally give, oil prices dip
NEW YORK (AP) -- Retail gasoline prices retreated Monday for the
first time in nearly two months and benchmark crude prices tumbled about 4
percent.
The World Bank said the global economy would shrink more than
previously stated and burgeoning supplies of crude and gasoline finally
appeared to grab hold of energy prices that since early May have appeared to
shake off market fundamentals.
Benchmark crude for July delivery dropped $2.62 to settle at
$66.93 on the New York Mercantile Exchange. The July contract expires later
Monday, and most of the trading already has shifted to the August contract,
which lost $2.52 to settle at $67.50.
German businesses expect improvement, survey shows
BERLIN (AP) -- Business confidence in Germany, Europe's largest
economy, dropped to a new all-time low in June but expectations for the future
continued to improve, a closely watched survey showed Monday.
The Munich-based Ifo institute's business climate index -- an
average of its current situation and future expectations numbers -- improved
overall to 85.9 points from 84.3 the month before, the third consecutive
increase since March when the indicator hit a 26-year low of 82.2 points.
The survey, based on around 7,000 monthly responses from firms in
manufacturing, construction, wholesaling and retailing, showed a jump in
expectations for the next six months, which improved from 86 to 89.5.
FTC requests more info from Merck, Schering-Plough
NEW YORK (AP) -- Drugmakers Merck and Co. and Schering-Plough
Corp., which are in the process of a $41.1 billion tie-up, said Monday the
Federal Trade Commission has asked for more information about the deal.
Merck, of Whitehouse Station, N.J., and Schering-Plough,
Kenilworth, N.J., said they expected the request, which was made under federal
antitrust law. The companies intend to cooperate with the request.
Merck agreed to buy Schering-Plough in March, and the companies
still expect the deal to close in the fourth quarter. The transaction also
requires approval by Merck and Schering-Plough shareholders.
By The Associated Press
The Dow fell 200.72, or 2.4 percent, to 8,339.01, its lowest
finish since May 27.
The Standard & Poor's 500 index fell 28.19, or 3.1 percent,
to 893.04, also leaving the index with its biggest slide since April 20 and erasing
its advance for the year. The Nasdaq composite index fell 61.28, or 3.4
percent, to 1,766.19.
Benchmark crude for July delivery dropped $2.62 to settle at
$66.93 on the New York Mercantile Exchange.
In other Nymex trading, gasoline for July delivery was down 6.47
cents at settle at $1.8597 a gallon and heating oil lost 5.92 cents to settle
at $1.7275 a gallon. Natural gas for July delivery fell 9.9 cents to settle at
$3.907 per 1,000 cubic feet.
In London, Brent crude fell $2.21 to settle at $66.98 a barrel on
the ICE Futures exchange.