US-BUSINESS Summary
Stocks end higher on jobless claims, home sales
NEW YORK - U.S. stocks rose in light trading volume on Wednesday, supported by data that pointed to stabilization in the labor and housing markets, areas that have fed concerns about a "double dip" recession. Trading volume was among the lightest of the year one day before the Thanksgiving holiday, with many senior traders absent from trading floors. Even so, the Dow industrials and the S&P 500 edged to fresh 13-month highs.
Dubai seeks debt delay, some units cut to junk
DUBAI/NEW YORK - Dubai said on Wednesday two of its flagship firms planned to delay repayment on billions of dollars of debt as a first step toward restructuring Dubai World, the conglomerate that spearheaded the emirate's breakneck growth. The sudden move by the Gulf government led Standard & Poor's and Moody's Investors Service to deeply downgrade several government-related entities. Moody's slashed some units to junk status and S&P said the restructuring could be considered a default.
Fed told rule change could help with exit: source
NEW YORK - A handful of banks have told the Federal Reserve they could do more to support the central bank's exit from its emergency cash infusions if a key accounting rule was changed, according to a person familiar with the situation. At issue are reverse repurchase agreements, a cash-draining tool, that the banks said could be used to a greater extent when the time comes if dealers did not have to record them on their balance sheets when they act as middle-men, the source said.
Consumer, labor data buoy optimism on recovery
WASHINGTON - U.S. consumer spending and home sales rose more than expected in October, while new claims for jobless benefits fell sharply last week, suggesting the economic recovery was gaining traction. A surprise decline in orders for long-lasting U.S.-made goods and a second straight monthly drop in consumer confidence, however, offered a reminder that the recovery from the most brutal recession in 70 years would be gradual.
AIG, ex-CEO Greenberg reach pact to settle disputes
NEW YORK - AIG and former chief executive Maurice "Hank" Greenberg have reached an agreement to bury a long-standing, bitter legal battle and the insurer will turn over materials the former boss can use to write his memoir, as well as prized photographs and a Persian carpet. The settlement is a feather in the cap of AIG Chief Executive Robert Benmosche, as it frees up the company's resources to deal with the more pressing matter of repaying taxpayers, which gave the company a $180 billion bailout to save it from collapse under soured mortgage bets last year.
U.S. new home sales rise sharply in October
WASHINGTON - Sales of newly built U.S. single-family homes in October rose more than expected to their highest level in a year, data showed on Wednesday, pointing to a stabilizing housing market after a three-year slump. The Commerce Department said sales jumped 6.2 percent to a 430,000 annual pace, the highest since September last year, from an upwardly revised 405,000 in September.
SEC probes derivatives in insider trading cases
WASHINGTON - U.S. regulators are increasingly looking beyond stocks in their insider trading investigations to examine derivatives and credit default swaps, a top Securities and Exchange Commission official said. The expansion comes as the SEC, state and federal criminal authorities pursue the biggest insider trading case involving hedge funds -- a case that has already ensnared the billionaire founder of Galleon Group, traders, lawyers and other Wall Street personnel.
Germany takes brunt of Opel job cuts, Saab in limbo
RUESSELSHEIM/STOCKHOLM - General Motors <GM.UL> targeted Germany on Wednesday for the bulk of 9,000 planned job cuts at European arm Opel, turning the tables on the country that lobbied hardest for an Opel sale to Canada's Magna. At the same, the U.S. automaker cast around for fresh options for Sweden's loss-making Saab after the collapse of its sale to luxury carmaker Koenigsegg added a new dimension to its tortuous European restructuring plans.
Tiffany adds shine to holiday view, shares rise
NEW YORK - Tiffany & Co <TIF.N>, which resisted the temptation to deeply discount its jewelry in the recession, posted earnings showing its upscale shoppers around the world are coming back to life. Tiffany's quarterly profit beat Wall Street expectations and the company raised its full-year forecast on Wednesday, saying early trends in November were encouraging ahead of the holiday shopping season. Its shares rose 4 percent.
Tribune lenders propose competing plan of reorganization
NEW YORK - Debtholders of bankrupt Tribune Co <TRBCQ.PK> have asked a judge to deny the media company's request for more time to present a plan of reorganization so the lenders themselves can offer a plan, according to court filings. Tribune Cos, owner of the Chicago Tribune and Los Angeles Times newspapers, have asked U.S. Bankruptcy Judge Kevin Carey to extend the time in which it can exclusively file a so-called Chapter 11 plan.