BUSINESS BRIEFS
Weaker dollar helps trade gap
Associated Press
WASHINGTON — A falling dollar boosted U.S. exports to record highs, pushing the trade deficit down to its lowest level in 28 months.
The trade gap with China, however, worsened as retailers brushed aside worries about a string of high-profile recalls to stock their shelves with Chinese imports for holiday shoppers.
The Commerce Department reported yesterday that the trade deficit dipped 0.6 percent in September to $56.5 billion, the smallest imbalance since May 2005.
CONFIDENCE LEVEL WORST SINCE 2005
WASHINGTON — Consumer confidence plunged in early November to the lowest level since Hurricane Katrina battered the Gulf Coast and sent oil prices soaring in 2005.
The RBC Cash Index showed consumer confidence fell to a reading of 64 this month, down sharply from an early October reading of 80.6, when consumer sentiment was on the upswing as the stock market stabilized temporarily following a turbulent August.
FANNIE MAE LOSS HITS $1.4 BILLION
WASHINGTON — Fannie Mae's third-quarter loss more than doubled to $1.4 billion, the mortgage finance company said yesterday, while forecasting industry troubles through 2008 because of mounting home loan delinquencies.
Shares of Fannie Mae, the largest U.S. buyer and backer of home loans, recovered from a decline of more than 9 percent early in the day to finish at $49, a decrease of 80 cents.
OIL UP 86 CENTS TO $96.32 A BARREL
NEW YORK — Oil prices ended slightly higher yesterday as markets took a breather ahead of options trading next week that's expected to trigger a run at $100 a barrel.
Light, sweet crude for December delivery on the New York Mercantile Exchange rose 86 cents to settle at $96.32 a barrel in New York, after hitting an earlier high of $96.65.
On Thursday, the contract fell 91 cents to settle at $95.46 after Federal Reserve Chairman Ben Bernanke said the housing slump and high oil prices will slow economic growth in coming months.
CHINA TOY BEADS SICKEN 7 MORE
WASHINGTON — Seven more U.S. children became sick after ingesting Chinese-made toy beads that were recalled earlier this week because of a toxic chemical coating, the government said yesterday.
The reports of the sickened children, six of whom were hospitalized, came from at least five states: Texas, Delaware, New Hampshire, Illinois and Utah, according to a spokeswoman for the Consumer Product Safety Commission.
The agency recalled the Spin Master Aqua Dots toy Wednesday after two children were knocked unconscious, and then hospitalized, by eating beads covered with a chemical that metabolizes into the compound gamma hydroxy butyrate — the so-called date-rape drug.
BANKS SEE MORE SUBPRIME LOSSES
CHARLOTTE, N.C. — Several of the nation's leading banks warned yesterday the subprime lending crisis will contribute to another round of losses in the fourth quarter, a sign that fallout from the housing and mortgage-lending slump is spreading deeper into the nation's credit markets.
Wachovia Corp. wrote down the value of its loan-backed securities by about $1.1 billion. Bank of America Corp. and JPMorgan Chase & Co. both said their fourth-quarter results would suffer — although neither quantified any potential markdowns in Securities and Exchange Commission filings.
Financial services provider E*Trade Financial also said yesterday it expects the value of its asset-backed securities to continue to drop in value, while credit card leader Capital One Financial Corp. reported an increase in October loan charge-offs and delinquencies.
