On 5:56 pm
EST, Wednesday November 25, 2009
WASHINGTON
(AP) -- A flurry of good news this week -- including falling jobless claims,
stronger consumer spending and higher new-home sales -- suggests the economic
rebound, modest though it is, might be here to stay.
The number
of newly laid-off workers filing applications for unemployment aid fell by
35,000 last week to 466,000, the Labor Department said -- the fewest new
filings since September of last year.
Another
report showed that Americans stepped up their shopping in October in the best
showing since August.
Meanwhile,
sales of new homes rose last month to the highest level in more than a year.
AIG resolves
all legal disputes with Greenberg
NEW YORK
(AP) -- American International Group Inc. has agreed to settle all legal
disputes with its former chairman Maurice "Hank" Greenberg, the
company said late Wednesday.
AIG also
settled all its legal disputes with former Chief Financial Officer Howard I.
Smith. AIG, which is owned by U.S. taxpayers, said it will pay up to $150
million in past legal costs for Greenberg and Smith.
AIG has said
that a Greenberg-controlled investment firm owed it $4.3 billion to cover stock
taken from a retirement fund.
AIG had also
claimed that Greenberg and Smith owe part of the $1.6 billion AIG has paid to
settle a range of issues with regulators including the Securities and Exchange
Commission, Justice Department and New York Attorney General.
Stocks rise
following drop in jobless claims
NEW YORK
(AP) -- Stocks climbed Wednesday following a drop in weekly unemployment claims
to the lowest level of the year and a rise in new home sales.
The market's
gains were modest on light trading volume ahead of the Thanksgiving holiday.
The
government said new claims for unemployment insurance fell by 35,000 last week
to 466,000. That's the fewest claims since September last year, and better than
the 500,000 that economists had expected.
Fed tightens
conflict of interest rules
WASHINGTON
(AP) -- The Federal Reserve on Wednesday tightened the conflict of interest
restrictions governing the boards of directors of its 12 regional banks.
The new
rules were passed to deal with potential conflicts such as one that involved
Stephen Friedman, a former chairman of Goldman Sachs Group Inc. The
requirements take effect immediately and spell out the obligations of directors
with ties to financial institutions that change status while the official is
serving on a Fed regional board.
Toyota to
replace gas pedals on 4 million vehicles
WASHINGTON
(AP) -- Toyota plans to replace the gas pedals on 4 million vehicles in the
United States because the pedals can get stuck in the floor mats and cause
sudden acceleration, a flaw that led to the sixth-largest recall ever in the
U.S.
The repairs
are a critical step to restoring the reputation of the world's biggest
automaker, which suffered a blow when the recall was announced in September
after years of making safe, reliable cars and trucks.
In plans
outlined Wednesday, dealers will offer to shorten the length of the gas pedals
by three-fourths of an inch beginning in January as a stopgap measure while the
company develops replacement pedals.
AP Source:
GM not talking to any new Saab suitors
DETROIT (AP)
-- General Motors Co. has not talked with any other potential buyers for the
Swedish Saab brand since a specialty car maker pulled out of a deal to buy it
this week, a person briefed on GM's plans said Wednesday.
The
development is another sign that GM's board may decide when it meets next week
to let the storied brand go out of business, placing 4,500 jobs in jeopardy.
The person,
who asked not to be identified because no final decision has been made on the
brand, confirmed Wednesday that the board would discuss Saab's future on Dec.
1.
Stores look
to basics to draw in holiday shoppers
NEW YORK
(AP) -- As stores prepare for hordes of Black Friday shoppers and mark down
high-definition TVs and hot toys, they're also pushing deals on something more mundane
-- necessities like socks and diapers.
Toys R Us,
Walmart and clothing stores in malls are responding to tough economic times by
luring people who are making it a more practical holiday this year.
What should
shoppers expect? Fewer sumptuous sweaters, $200 robotic toys and other flashy
items. Everyday items like flannel shirts, blankets and underwear are the order
of the day.
Dollar hits
15-month low; steepest drop since July
NEW YORK
(AP) -- The safe-haven dollar slid to a 15-month low against the euro, was
within striking distance of 14-year lows versus the yen and dipped below parity
against the Swiss franc Wednesday as markets absorbed the Federal Reserve's
indication that interest rates will remain at super-low levels for a while and
it was not overly concerned by the U.S. currency's decline.
Against a
basket of six currencies including the euro, yen and franc, the dollar fell as
low as 74.245, its weakest point since August 2008 and its steepest one-day
drop since July 31, said Joseph Trevisani, chief market analyst at FXSolutions.
The
16-nation euro climbed as high as $1.5142 Wednesday, its strongest level since
August 2008. In late New York trading, it read $1.5139 from $1.4975 late
Tuesday.
The break
above $1.51 sets the dollar up for possible steep drops this weekend.
A stream of
White House health care visits
WASHINGTON
(AP) -- President Barack Obama's top aides met frequently with lobbyists and
health care industry heavyweights as his administration pieced together a
national health care overhaul, according to White House visitor records
obtained Wednesday by The Associated Press.
The records
disclose visits by a broad cross-section of the people most involved in the
health care debate, weighted heavily toward those who want to overhaul the
system.
The list
includes George Halvorson, chairman and CEO of Kaiser Health Plans; Scott
Serota, president and CEO of the Blue Cross and Blue Shield Association;
Kenneth Kies, a Washington lobbyist who represents Blue Cross/Blue Shield,
among other clients; Billy Tauzin, head of PhRMA, the drug industry lobby;
Richard Umbdenstock, chief of the American Hospital Association, and numerous
lobbyists.
Energy
prices on the rise despite huge supply
The dollar's
sway over energy markets was on full display Wednesday, with oil and gasoline
futures rising sharply as the U.S. currency tumbled to 15-month lows.
Crude prices
had been trading relatively flat, even after the government reported supplies
grew by 1 million barrels last week.
At midday,
however, the dollar began to slide against the euro, and crude prices jumped
along with gasoline and other crude-based fuels.
Natural gas,
which each week sets new records for the total amount held in storage, jumped
more than 8 percent.
By The
Associated Press
The Dow
Jones industrial average rose 30.69, or 0.3 percent, to 10,464.40.
The broader
Standard & Poor's 500 index rose 4.98, or 0.5 percent, to 1,110.63, and the
Nasdaq composite index rose 6.87, or 0.3 percent, to 2,176.05.
Benchmark
crude for January delivery rose $1.94 to settle at $77.96 on the New York
Mercantile Exchange, despite growing supply.
In other
Nymex trading, gasoline for December delivery jumped 5.86 cents to settle at
$1.9976 a gallon. Heating oil gained about 4 cents to settle at $1.9901 a
gallon. Natural gas for December delivery rose nearly 40 cents to $5.163 per
1,000 cubic feet.
In London,
Brent crude for January delivery rose $1.98 to settle at $78.44 on the ICE
Futures exchange.