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The Tampa Tribune

Published: August 17, 2008

Consumer Prices Surge, Job Market Remains Strained

WASHINGTON (AP) - Inflation is running at the fastest pace in 17 years, the job market is under further strain and foreclosure filings are surging.

A raft of gloomy economic data on Thursday represented a setback for those hoping to see signs of better times ahead and it may keep the Federal Reserve jammed between rising inflation and slowing growth.

The Labor Department reported that consumer prices shot up by 0.8 percent in July, double the increase that economists had expected, while the number of newly laid off workers filing for unemployment benefits fell by 10,000 last week to 450,000.

Wal-Mart Says 2nd Quarter Profit Up, Raises Outlook

NEW YORK (AP) - Wal-Mart Stores Inc. raised its full-year earnings forecast Thursday after second-quarter profit rose more than expected, helped by tight inventory controls and a renewed focus on low prices that is attracting financially squeezed shoppers around the world.

But the world's largest retailer predicted slower sales growth at its established stores in the U.S. for the current quarter, as the benefits of the federal stimulus checks dry up and customers find it more difficult to stretch their paycheck to the next payday.

The Bentonville, Ark.-based retailer said it earned $3.45 billion in the quarter ended July 31, up 17 percent from $2.95 billion a year earlier. Profit from continuing operations rose 9.3 percent to $3.39 billion, while net sales gained 10 percent to $101.6 billion.

JPMorgan, Morgan Stanley Settle Securities Probe

NEW YORK (AP) - JPMorgan Chase & Co. and Morgan Stanley on Thursday became the latest banks to reach settlements with New York Attorney General Andrew Cuomo and other regulators as part of a investigation into the collapse of the auction-rate securities market.

The pair of banks will repurchase a combined $7 billion in the troubled securities at face value from investors. Morgan Stanley agreed to pay a fine of $35 million, while JPMorgan will pay a fine of $25 million.

JPMorgan and Morgan Stanley are the third and fourth to reach settlements, following deals by UBS AG and Citigroup Inc. last week. In addition, Wachovia Corp. was in a final round of talks with Cuomo and was expected to announce a settlement as soon as Thursday evening, according to a person close to the talks.

Oil Down As Weak Demand Outweighs Georgia Conflict

NEW YORK (AP) - Oil prices fell about a dollar Thursday, pulling back from the previous day's rally as waning U.S. demand for energy overshadowed supply threats from the conflict in Georgia.

Crude fell as low as $112.59 a barrel before settling at $115.01 as traders continued to ponder Wednesday's U.S. Energy Department report on weekly fuel inventories.

The department's Energy Information Administration reported a bigger-than-expected drop in gasoline supplies but also said U.S. demand for refined fuel products continues to fall as American grapple with amost $4-a-gallon gasoline. The data seemed to confirm oil market analysts' beliefs that Americans are still cutting back on their driving despite slightly lower pump prices.

Regulator: UBS Defrauded NH Student Lender

CONCORD, N.H. (AP) - New Hampshire securities regulators on Thursday accused banking giant UBS of defrauding the state's leading issuer of student loans.

In a civil complaint, the Bureau of Securities Regulation said that while UBS Securities LLC was steering some clients out of the auction-rate securities market last winter because of signs the market would collapse, it was advising the New Hampshire Higher Education Loan Corp. to offer higher interest rates so it could stay in.

UBS denied defrauding anyone and will vigorously defend itself.

Yahoo Selects Biondi, Chapple As New Board Members

SEATTLE (AP) - Yahoo Inc. said Thursday it will add the former chief executives of Viacom and Nextel Partners to its board of directors as part of the company's deal to ward off a proxy fight with billionaire investor Carl Icahn.

The Sunnyvale, Calif.-based company selected Frank Biondi Jr. and John Chapple, former chief executives of Viacom Inc. and Nextel Partners, respectively, from a list of nine possible new board members submitted by Icahn.

Icahn has spent two months spearheading a campaign to replace the Internet company's entire board after it rejected Microsoft's $47.5 billion takeover bid in May.

Median Home Prices Fall Around US

WASHINGTON (AP) - Median home prices fell in more than three-quarters of U.S. cities in the second quarter, the latest sign of the breadth of the housing market decline, according to new data Thursday.

Nevertheless, home sales rose in areas where the market is flooded with foreclosures, indicating that borrowers are taking advantage of steep discounts.

Nevada and California, battered by a housing market bust, were the only states to show sales gains in the second quarter compared with a year earlier, according to a report by the National Association of Realtors.

Bush Signs Bill Banning Lead From Children's Toys

WASHINGTON (AP) - President Bush on Thursday signed consumer-safety legislation that bans lead from children's toys, imposing the toughest standard in the world.

The new law prohibits lead, beyond minute levels, in products for children 12 or younger. Lead paint was a major factor in the recall of 45 million toys and children's items last year, many from China.

Both houses of Congress approved the bill by overwhelming margins two weeks ago.

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