FINANCIAL & BUSINESS NEWS

Last Update on February 09, 2010 04:09 EST

Dow below 10,000

NEW YORK (AP) -- Wall Street begins trading today with the Dow Jones industrials below 10,000 for the first time in three months.

Financial stocks pulled the market lower yesterday as mounting debt problems in several weaker European economies raised new questions about the health of the global financial system.

Two stocks fell for every one that rose on the New York Stock Exchange.

The Dow ended the day down 104 at 9,908. The S&P 500 was off 9, and the Nasdaq fell 15.

World stocks mixed after Wall Street decline

BEIJING (AP) -- World stocks were mixed Tuesday following Wall Street's decline on lingering worries about high European debt levels.

Tokyo and Sydney were down while Shanghai and Hong Kong gained. As trading got started in Europe, France's CAC-40 and Germany's DAX were moderately lower while Britain's FTSE 100 advanced.

Tokyo's Nikkei 225 stock average lost 0.2 percent, while Sydney's S&P-ASX 200 declined 0.4 percent.

China's benchmark Shanghai Composite Index gained 0.5 percent and Hong Kong's Hang Seng index advanced 1.2 percent. Seoul's Kospi rose 1.1 percent.

Elsewhere, benchmarks in Thailand, Malaysia and the Philippines fell. Markets in Singapore, Taiwan and India posted solid gains.

Oil below $72 in Asia amid economy doubts

SINGAPORE (AP) -- Oil prices rose above $72 a barrel Tuesday in Asia as investors remained uncertain about the strength of global economic growth and demand for crude.

Benchmark crude for March delivery was up 26 cents at $71.78 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained 70 cents to settle at $71.89 on Monday.

Toyota recalls 437,000 Prius, hybrids globally

TOKYO (AP) -- Toyota says it is recalling about 437,000 Prius and other hybrid cars worldwide to fix brake problems -- the latest in a string of embarrassing safety problems at the world's largest automaker.

Company President Akio Toyoda made the recall announcement Tuesday afternoon at a press conference.

"We have decided to recall as we regard safety for our customers as our foremost priority," Toyoda said.

There have been about 200 complaints in Japan and the U.S. about a delay when the brakes in the Prius were pressed in some conditions.

Toyotas lose some value

CHICAGO (AP) -- A Toyota's resale value has taken another hit.

Kelley Blue Book dropped the resale values of recalled Toyotas yesterday for the second time in four days, leaving them as much as 4 percent or $300 to $750 lower than a week ago, depending on the model.

Juan Flores, director of vehicle valuation for Kelley Blue Book, says the latest reduction reflects a drop in customer demand for Toyotas as well as Toyota's apparent lack of confidence in its vehicles.

The auto research Web site Edmunds.com estimates resale or trade-in values could fall up to 10 percent in the short term.

AstraZeneca gets OK for expanded Crestor use

WASHINGTON (AP) -- Federal regulators have granted AstraZeneca approval to market its cholesterol pill Crestor as a preventive measure against heart attack and stroke in patients with healthy cholesterol levels.

The Food and Drug Administration decision will allow the company to promote Crestor to millions of U.S. patients who traditionally have not been candidates for cholesterol-lowering drugs.

A much-heralded study in 2008 showed Crestor reduced heart attack, stroke and other problems by 44 percent in patients with normal cholesterol and slight heart disease risks. All the patients had elevated levels of the so-called C-reactive protein, a key indicator of inflammation that can lead to clogged arteries, causing heart attack or stroke.

Scientists are still unsure whether the positive results were due to lower cholesterol or C-reactive protein, since Crestor reduces both.

Under the new language, Crestor is approved for men 50 and older, and women 60 and older who have elevated C-reactive protein. Patients must also have at least one risk factor for heart trouble, such as high blood pressure or a smoking habit.

China discloses buying spree in US companies

BEIJING (AP) -- China's giant sovereign wealth fund revealed it has accumulated stakes totaling $9.6 billion in major U.S. companies including Coca-Cola, Apple and Goodyear following a buying spree last year.

Most of the stakes are small, reflecting China Investment Corp.'s strategy of avoiding politically sensitive acquisitions. But they highlight its growing presence in global markets as it invests a portion of Beijing's $2.4 trillion in foreign reserves.

The holdings were disclosed Friday in a filing with the U.S. Securities and Exchange Commission that listed shares traded in the United States.

CIC, one of the world's biggest investment funds, was launched in September 2007 with $200 billion in capital to earn a better return on Beijing's reserves. One-third of its capital was earmarked for investment abroad, and the fund has bought minority stakes in mining, oil and financial companies.

Security chip that does encryption in PCs hacked

SAN FRANCISCO (AP) -- A former U.S. Army computer-security specialist has found a way to break into a type of chip that protects the most important secrets inside many personal computers.

Christopher Tarnovsky attacked a chip that carries a "Trusted Platform Module" designation, billed as among the industry's most secure. The attack also works on other chips based on the same design and used in satellite television equipment, video game consoles and smart phones.

The development means that smart and well-funded attackers could steal confidential documents from computers they've stolen, tap text messages and e-mail from lost or stolen mobile phones, and pirate satellite TV signals.

The chip's manufacturer knew this type of attack was possible, but determined it was so tough to pull off, it had limited chance of affecting many users.

Boeing's 747-8 freighter completes first flight

EVERETT, Wash. (AP) -- Boeing's giant 747-8 freighter -- the biggest plane the company has ever built -- successfully completed its first flight yesterday, a year later than originally planned.

At 250 feet long -- more than twice the length of the Wright Brothers' first flight -- the plane is about 18 feet longer than the existing 747-400 jumbo jet.

Boeing is also developing a passenger version of the plane. It lists 76 orders for the freighter and 32 for the 747-8 passenger jet, with the vast majority from international customers.

The company says the jets will be much quieter, more fuel efficient and have lower emissions than current 747-400 models. They list at more than $300 million each.

Japan Airlines rejects Delta, stays with American

TOKYO (AP) -- Japan Airlines, wooed for months by Delta Air Lines with promises of cash and a broad global network, is spurning the world's biggest carrier and opting to keep its alliance with American Airlines.

Japan's flagship carrier says it will strengthen its partnership with American and apply to the U.S. government for antitrust immunity on trans-Pacific flights.

Antitrust immunity, the key to a closer revenue-sharing relationship between U.S. and Asian carriers, would likely have been difficult for JAL to achieve with Delta, a member of the SkyTeam alliance, because of competition concerns.

There is no guarantee American and Japan Airlines will be able to get antitrust immunity, either. But JAL, which is restructuring in bankruptcy, in the end wasn't willing to take the risk of moving to Delta.

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