US-BUSINESS Summary
Greece rescue talk supports stocks
HONG KONG - Asian stocks rose on Wednesday after reports that Europe was close to bailing out debt-strapped Greece, coaxing investors back to riskier assets, though uncertainty kept a lid on the euro. Deteriorating confidence in the ability of Greece, Portugal and Spain to finance growing fiscal shortfalls has spooked financial markets for weeks and knocked the euro to its lowest since May 2009, just below $1.36.
Inside Toyota's epic breakdown
TOYOTA CITY, Japan/DETROIT - Toyota Motor Corp <7203.T>, the world's most dominant and profitable automaker, was not accustomed to outsiders telling it what to do, let alone some obscure bureaucrat from the United States, whose own car industry was on taxpayer-funded life support. But in the middle of December, on a cloudy day in the middle of the Japanese archipelago's main island, Ron Medford, the acting head of the U.S. agency that regulates auto safety, was reading Toyota executives the riot act.
Honda recalls another 438,000 cars for airbag risk
TOKYO/DETROIT - Honda Motor Co <7267.T> said it would recall another 438,000 cars globally to replace an airbag deflator that could rupture and send shards toward the driver in an accident. The move follows a separate recall of 646,000 cars less than two weeks ago for a faulty window switch that engulfed a Jazz subcompact in flames in South Africa, killing a child.
European governments agree to help Greece: source
BERLIN - European governments have agreed in principle to help heavily indebted Greece, a senior German coalition source said on Tuesday, in what would be the first rescue of a euro zone member in the currency's 11-year history. "The decision on help for Greece has been taken in principle within the euro zone," said a source in the German coalition government who has knowledge of the negotiations.
Disney quarterly results beat expectations
LOS ANGELES - A strong performance at its cable division and cost-cuts at its film studio propelled Walt Disney Co <DIS.N> to better-than-expected earnings, but clouds remained over its theme parks. Disney shares rose as much as 2 percent after the first quarter earnings report on Tuesday, which followed what is becoming a familiar pattern for media companies.
Honda expands airbag recall as more Toyotas probed
TOKYO/DETROIT - Honda Motor Co <7267.T> said it would recall another 440,000 cars around the world for faulty airbags as rival Toyota Motor Corp <7203.T> faced further probes over its largest-ever safety crisis. Honda, Japan's No.2 automaker, said the faulty airbags had previously been linked to one fatality and a total 11 injuries in the United States, but no accidents elsewhere.
Investors questioned Morgan Stanley's pay: report
NEW YORK - Morgan Stanley's <MS.N> move to cut the firm's pay ratio followed prodding by large investors who questioned the firm's high pay levels, and the firm is preparing to take further steps to address shareholder concern, The Wall Street Journal Online reported on Tuesday. The Journal, citing people familiar with the situation, said these investors, which it did not name, were concerned that Morgan's pay and benefits last year reached 62 percent of net revenue, the highest percentage in a decade.
Obama, Republicans find common ground on jobs
WASHINGTON - President Barack Obama found common ground with Republicans on Tuesday over his top priorities of job creation and deficit reduction but drew a rebuke on healthcare reform. A Democrat, Obama has been promoting a retooled strategy since an election in Massachusetts last month deprived his party of a "super majority" in the Senate and forced him to work more closely with rival Republicans.
Paulson, Buffett say U.S. needed tough medicine
NEW YORK - Former Treasury Secretary Henry Paulson and billionaire investor Warren Buffett, from different sides of the political spectrum, expressed support on Tuesday for the U.S. government's aggressive steps in 2008 to keep the nation's banks and economy from a complete meltdown. The men were speaking before the annual meeting of the Greater Omaha Chamber of Commerce in Omaha, Nebraska, where Buffett's insurance and investment company Berkshire Hathaway Inc <BRKa.N><BRKb.N> is based. CNBC simulcast their talk on its website.
Charges added in Rajaratnam insider trading case
NEW YORK - Additional criminal charges were filed on Tuesday against Galleon hedge fund founder Raj Rajaratnam as prosecutors alleged he and his co-defendant reaped $49 million from illegal insider trading, up from an earlier claim of $40 million. In the parallel civil case against Rajaratnam and co-defendant Danielle Chiesi, a judge ordered the two defendants to turn over wiretaps to the U.S. Securities and Exchange Commission. In a letter to Manhattan federal court Judge Jed Rakoff on Tuesday night, Rajaratnam's lawyers asked him to stay the order pending an appeal.