BUSINESS BRIEFS
GM production, plant cuts likely
Associated Press
DETROIT — General Motors Corp. is likely to announce further production cuts and possible plant closures as early as next week as it deals with slumping sales and a collapse in its stock price, a person with knowledge of the company's plans said yesterday.
The person, who did not want to be identified because the plans are not finalized, said the cuts likely will hit engine, transmission and stamping operations to correspond with a June announcement that GM would close four truck and sport utility vehicle assembly plants.
The closures of those assembly plants likely will be accelerated, the person said.
OIL PRICES SLIDE TO BELOW $78/BARREL
NEW YORK — The stunning collapse in oil markets accelerated yesterday, sending a barrel of crude plunging below $78 as investors grow more pessimistic about resolving a mushrooming global economic crisis.
Oil hasn't been this cheap in 13 months — a rare silver lining for consumers amid a rapidly imploding financial landscape.
Crude prices have almost been cut in half since surging to a record near $150 barrel over the summer.
REGULATORS CLEAR WACHOVIA SALE
NEW YORK — Federal antitrust regulators yesterday cleared Wells Fargo's $11.7 billion acquisition of Wachovia Corp., capping a weeklong battle for the Charlotte, N.C.-based bank.
The rapid approval comes a day after Citigroup Inc. walked away from its own efforts to buy Wachovia. Late Thursday, Citigroup broke off talks with Wells Fargo and federal regulators after the suitors failed to reach an agreement over how to split up the bank.
San Francisco-based Wells Fargo & Co. said Thursday it would proceed with the purchase and plans to complete the deal by the end of the fourth quarter. It still needs approval of Wachovia shareholders.
TRADE DEFICIT OFF FROM RECORD LEVEL
WASHINGTON — The U.S. trade deficit edged down slightly in August, reflecting a drop in foreign oil from record levels. But the politically sensitive deficit with China increased as imports from that country hit an all-time high.
The Commerce Department said yesterday the trade deficit declined by 3.5 percent in August to $59.1 billion. The deficit is expected to shrink even further in coming months as a severe economic slump in the U.S. depresses demand for oil and other imported goods.
America's foreign oil bill declined to $43.7 billion in August, down a record $7.3 billion from the all-time high of $51 billion in July. The drop reflected both lower shipments and oil prices.
GE PROFIT DECLINE MEETS FORECAST
HARTFORD, Conn. — General Electric Co. spared investors any nasty surprises as it reported a 22 percent drop in third-quarter earnings yesterday, meeting its own lowered forecast and blaming the decline on its struggling finance arm.
GE, which also makes everything from jet engines to water treatment systems and owns NBC Universal, reported net income of $4.3 billion, or 43 cents per share. Sales rose 11 percent to $47.23 billion.
A year earlier, the company earned $5.56 billion, or 54 cents.
MORGAN STANLEY SHARES PLUMMET
NEW YORK — Morgan Stanley Inc. shares plunged more than 22 percent yesterday as investors questioned the investment bank's future even with a major investment from Japan's Mitsubishi UFJ Financial Group.
Yesterday marked the fifth straight day that shares of the nation's second-largest investment bank have been pummeled. The latest round of selling was triggered on renewed fear that Morgan Stanley's credit ratings might be cut, a move that threatens earnings power.
The potential for a downgrade heightens pressure on Chief Executive John Mack.
