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TMCNet: AP Business NewsBrief at 12:49 p.m. EDT

[March 27, 2009]

AP Business NewsBrief at 12:49 p.m. EDT

(AP Online Via Acquire Media NewsEdge) Investors cash in some gains from big rallyNEW YORK (AP) _ Stocks are falling Friday as investors cash in some of this month's big gains. Technology stocks led the decline as did energy shares, which fell along with the price of oil.


Consumer spending up for second straight monthWASHINGTON (AP) _ The government says consumers increased spending for a second straight month in February even though their incomes slipped due to continuing massive layoffs. The Commerce Department reported Friday that consumer spending edged up 0.2 percent in February, in line with expectations. That follows a huge 1 percent jump in January that was even better than the 0.6 percent rise originally reported.

KB Home reports loss in 1QKB Home slashed its quarterly loss by 78 percent, more than expected, and reported a 26 percent increase in new homes orders as cost-conscious buyers flocked to the builder's smaller and more affordable models. The Los-Angeles based company's results, also helped by cost cuts and smaller accounting charges, were a ray of hope for a housing market beset by weak sales and dropping prices in a troubled economy.

Obama says automakers need 'drastic changes'WASHINGTON (AP) _ President Barack Obama plans to announce a new aid package for General Motors and Chrysler in the coming days and says the carmakers must make "pretty drastic changes" to save their industry. Obama gave a preview of his administration's approach to fixing the struggling U.S. auto industry during an online town hall meeting Thursday, promising additional aid only if the Detroit change its ways and receives concessions from stakeholders.

Obama seeks input of bank CEOs on recovery plansWASHINGTON (AP) _ President Barack Obama wants to hear from the chief executives of some of the country's biggest banks as he caps a week in which he clarified his overall plan for stabilizing the financial system. The president was set to take the temperature of the bank CEOs on Friday at the White House. The session will be the latest in a series of such meetings Obama has had with financial industry representatives and business executives since taking office amid the worst economic downturn since the Great Depression. Treasury Secretary Timothy Geithner also will attend the meeting.

Seven states see jobless rate top 10 percentWASHINGTON (AP) _ More states logged double-digit unemployment rates in February, with North Carolina and Rhode Island seeing their rates hit record highs. The U.S. Labor Department's report, released Friday, showed the terrible toll the recession, now in its second year, is having on workers and companies alike.

Charter files for prearranged bankruptcyCharter Communications Inc. on Friday filed for a prearranged Chapter 11 bankruptcy to get relief from its creditors, as the nation's fourth largest cable operator strives to keep its head above water and still compete with phone companies and satellite TV providers. The filing restructures about $8 billion of debt at St. Louis-based Charter, which is controlled by Microsoft Corp. co-founder Paul Allen, but leaves about $13 billion of debt on its books. Allen will control 35 percent of the votes in the reorganized company.

Oil below $53 amid concern over demand outlookLONDON _ Oil prices fell below $53 a barrel Friday, a day after hitting a high for the year, on concerns about the sustainability of recent gains and lingering doubts about the recovery of the global economy and oil demand. Benchmark crude for May delivery fell $2 to $52.34 a barrel by midafternoon in European electronic trading on the New York Mercantile Exchange.

Johnson Controls to cut jobs, close 10 plantsMILWAUKEE (AP) _ Johnson Controls Inc. said Friday it will cut jobs and close 10 manufacturing plants as part of a restructuring effort that it said will cost between $200 million and $215 million. The company, whose products include automotive parts, batteries and building systems, did not say how many employees will be affected or which plants it will close. A company spokeswoman was not immediately available for comment early Friday.

Top bank regulator placed on leave pending reviewWASHINGTON (AP) _ A top bank regulator has been placed on leave pending a Treasury Department investigation into regulators' approval of backdated cash infusions for troubled thrifts. The Office of Thrift Supervision said Thursday that its acting director, Scott Polakoff, was placed on leave "pending a review by the Department of the Treasury of the OTS' August 2008 actions related to post-period capital contributions." China says industrial profits down 37 percentBEIJING (AP) _ Profits at China's oil producers, steel makers and other major industrial companies fell sharply in January and February as sales were battered by the global economic crisis, data showed Friday. The data highlighted the impact of China's downturn on even its biggest companies despite a multibillion-dollar government stimulus plan.

Japan retail sales fall most in 7 yearsTOKYO (AP) _ Retail sales in Japan retreated by the biggest margin in seven years in February, the government said Friday, as growing concerns about jobs and wages deepened the country's shopping slump. Consumer prices, meanwhile, were steady. Retail sales fell 5.8 percent from a year earlier to 9.98 billion yen ($101 million) _ the sharpest decline since February 2002, according to the Ministry of Economy, Trade and Industry. The figure marks the sixth straight month that sales have fallen at retail outlets like department stores and supermarkets.

Australia sets conditions on China mine purchaseCANBERRA, Australia (AP) _ Australia threw up an obstacle Friday to a state-owned Chinese metals company's bid to acquire miner Oz Minerals Ltd., saying the purchase cannot include a key gold and copper mine in a military area. Treasurer Wayne Swan's ruling threatened to wreck China Minmetals Nonferrous Metals Co.'s 2.6 billion Australian dollar ($1.7 billion) acquisition of debt-laden Oz Minerals, which sought the deal as a financial lifeline.

JC Flowers chief resigns from Hypo supervisory brdFRANKFURT, (AP) _ Christopher Flowers, the chief of U.S. private equity firm J.C. Flowers & Co LLC, resigned Friday from the supervisory board of Hypo Real Estate Holding AG, seeking to avoid a conflict of interest as the German government considers whether to buy the troubled bank. J.C. Flowers said Christopher Flowers and fellow supervisory board member Richard Mully, a managing partner of Grove International Partners LLC, stepped down to avoid conflicts in case Germany takes action against Hypo shareholders, forcing them out of their investment in Hypo.

European markets retreat ahead of US openLONDON (AP) _ European stock markets fell modestly Friday after a mixed performance in Asia as investors booked profits on recent gains ahead of the U.S. open, though reports that British bank Barclays PLC may get the financial all-clear from the country's financial regulator gave the banking sector a boost. Germany's DAX was down 28.41 points, or 0.7 percent, at 4,230.96 while France's CAC-40 was 22.31 points, or 0.8 percent, lower at 2,869.76.

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