BUSINESS BRIEFS
Oil hits another record, above $97
Associated Press
NEW YORK — Oil futures jumped to a record above $97 a barrel yesterday after bombings in Afghanistan and an attack on a Yemeni oil pipeline compounded the supply concerns that have driven crude prices higher in recent weeks.
Those concerns were also fed by a government prediction yesterday that domestic oil inventories will fall farther this year while consumption rises.
At the pump, meanwhile, gas prices continued to rise, following oil's 39 percent price rally since August.
GM TO ACCEPT $39 BILLION CHARGE
DETROIT — General Motors Corp. says it will record a $39 billion net noncash charge for the third quarter because of negative changes in its historical three-year cumulative loss.
The charge will affect reported net earnings, which are to be announced this morning, the company said.
The charge is related to establishing a valuation allowance against deferred tax assets in the U.S., Canada and Germany, the company said in a statement.
MICROSOFT FIRES CIO STUART SCOTT
REDMOND, Wash. — Microsoft Corp. has fired its chief information officer, saying he violated company policies. A spokesman declined to give the exact reason for the dismissal.
Spokesman Lou Gellos said Stuart Scott was dismissed Friday. He would not elaborate.
According to Microsoft's Web site, Scott was responsible for the information technology infrastructure at the world's largest software maker. He joined Microsoft in 2005.
FREDDIE MAC CEO TO PAY $16.4M
WASHINGTON — The government reached a $16.4 million settlement yesterday with Freddie Mac's former CEO for his role in the mortgage finance company's multibillion-dollar accounting scandal.
Leland Brendsel, who was ousted in 2003, agreed to pay $2.5 million in fines to the government, give back $10.5 million in salary and bonuses to Freddie Mac and to waive claims worth $3.4 million against the company.
TOUGHER IMPORT INSPECTIONS URGED
WASHINGTON — The federal government would toughen its policing of products from abroad under steps proposed by President Bush yesterday after a rash of recalls of dangerous toothpaste, dog food and toys.
Bush said the United States benefits from having an open market and a huge variety of products from across the globe.
Acting on recommendations from an advisory panel, Bush proposed that the Food and Drug Administration be empowered to order mandatory recalls of unsafe food products.
MOLSON COORS' PROFITS TAKE DIP
DENVER — Beer giant Molson Coors Brewing Co. yesterday reported a dip in third-quarter net income because of one-time charges that offset a 7 percent increase in sales.
The company's Canadian and U.S. operations both turned in stronger results in sales to retail outlets, while the European business was affected by rainy weather and newly enacted smoking bans.
YAHOO APOLOGIZES OVER CHINA AFFAIR
WASHINGTON — Yahoo Inc.'s chief executive and top lawyer yesterday defended their company's involvement in the jailing of a Chinese journalist. Irate lawmakers accused them of collaborating with an oppressive communist regime.
Yahoo Chief Executive Jerry Yang and General Counsel Michael Callahan offered apologies and promises to do better but no specific commitments.
Lawmakers insisted that Yahoo along with other companies must use its market strength to change China, not just comply with the government's demands in order to gain access to tens of millions of Internet users.
