BUSINESS BRIEFS
Boeing, striking machinists set to resume talks
Associated Press
SEATTLE — The Boeing Co. and its striking machinists union have agreed to return to the bargaining table, both sides said yesterday.
A federal mediator will help hammer out details of the resumed negotiations. The machinists union has been on strike in a contract dispute since Sept. 6.
The International Association of Machinists, which represents about 27,000 workers in Washington, Oregon and Kansas, walked out after rejecting a contract offer over concerns about job security, pay, healthcare and retirement benefits.
PENDING HOME SALES UP 7.4%
WASHINGTON — Pending home sales rose 7.4 percent from July to August, an unexpected piece of positive news for the battered U.S. housing market.
The National Association of Realtors said yesterday its seasonally adjusted index of pending sales for existing homes rose to 93.4 from an upwardly revised July reading of 87. The reading was the highest since June 2007.
Home sales are considered pending when the seller has accepted an offer, but the deal has not yet closed. Typically, there is a one- to two-month lag before a sale is completed.
CASINO SMOKERS MAY GET REPRIEVE
ATLANTIC CITY, N.J. — The latest casualty of the economic crisis may be the ban on smoking in Atlantic City casinos.
The City Council moved last night to postpone for a year a law that was to take effect next week banning smoking from the gambling floor. A final vote will be held in two weeks.
The casinos and the head of their largest workers union asked the council to put the ban on hold until the economy improves.
They fear deep losses and significant layoffs if smokers take their money elsewhere. Some casinos in nearby states do not restrict smoking.
OIL DIPS TO LOWEST PRICE SINCE 2007
NEW YORK — Oil prices closed down yesterday after touching their lowest level this year, pressured by a huge jump in U.S. crude inventories and more signs of dwindling demand.
Light, sweet crude for November delivery fell $1.11 to settle at $88.95 on the New York Mercantile Exchange. Oil at one point fell to $86.05 — the lowest price since Dec. 6, 2007.
In London, November Brent crude sank to a one-year low of $81 a barrel on the ICE Futures exchange, before ending the day down 30 cents at $84.36 a barrel. Crude has now fallen about 40 percent since surging to a record $147.27 a barrel on July 11.
FED LOANS AIG AS MUCH AS $37.8B
CHARLOTTE, N.C. — The Federal Reserve yesterday agreed to provide insurance giant American International Group Inc. with a loan of up to $37.8 billion, on top of one made to the troubled company last month.
Under the new program, the Federal Reserve Bank of New York will borrow up to $37.8 billion in investment-grade, fixed-income securities from AIG in return for cash collateral. These securities were previously lent by AIG's insurance company subsidiaries to third parties.
The arrangement will help AIG secure funds on an as-needed basis, the New York-based insurer said in a statement.
TRUCE EXTENDED IN WACHOVIA FIGHT
NEW YORK — Citigroup and Wells Fargo agreed yesterday to extend their legal standstill in the fight for Wachovia until tomorrow morning, giving the banks more time to work toward a mutual agreement.
After the battle for the Charlotte, N.C.-based bank moved to both state and federal court over the weekend, the parties agreed Monday to a cease-fire at the urging of Federal Reserve officials. But that agreement expired at noon yesterday without a resolution on the fate of Wachovia. The extension of the standstill suggests that the parties believe an agreement is reachable.
