BUSINESS BRIEFS
Wal-Mart reports 10% increase in 3rd-quarter profit
Associated Press
NEW YORK — Wal-Mart officials sounded an upbeat tone for the holidays as the retailer posted a 10 percent increase in third-quarter profits yesterday, saying that shoppers are responding to its early Christmas promotions.
But the world's largest retailer trimmed its profit outlook for the fiscal year as it faces a troubled global economy and the renewed strength of the dollar. Nevertheless, Wal-Mart — with its renewed focus on low prices — has been one of the few bright spots in retail, as Americans have focused on necessities at discounters. The trend has intensified since the financial meltdown in September.
WORLD RECESSION FORECAST INTO '09
LONDON — The world's developed countries, hard hit by the financial crisis, have probably tipped into a recession that will last at least through the first half of 2009, according to new projections issued yesterday.
The Paris-based Organization for Economic Cooperation and Development forecast that economic output would shrink 1.4 percent this quarter for the 30 market democracies that make up its membership — and keep contracting until the middle of next year.
OIL PRICES CLIMB AFTER WILD SWING
COLUMBUS, Ohio — Oil prices swung wildly yesterday following a lead from Wall Street, which sank 300 points before investors flooded back into the market.
Light, sweet crude for December delivery rose $2.08 to settle at $58.24 on the New York Mercantile Exchange. Crude earlier dipped as low as $54.67, a price last seen in January 2007, on reports that the world's biggest economies are in recession and that energy demand has declined to decade-ago levels.
CITIGROUP DENIES LEADERSHIP CHANGE
NEW YORK — As Citigroup Inc.'s shares sank to 13-year lows below $9 a share, the bank denied a report yesterday that it is looking for a new chairman.
"Any report that the board is searching for a new chairman is false," said Citigroup spokeswoman Christina Pretto.
The Wall Street Journal, citing people familiar with the matter, reported that some Citigroup board members are increasingly dissatisfied with the company's performance and are considering replacing Chairman Sir Win Bischoff, who took the post in December.
CARMAKERS LOBBY FOR LOAN PROGRAM
WASHINGTON — The auto industry and business groups mounted a lobbying onslaught yesterday to thwart GOP opposition to a Senate vote next week on Democrats' plan for a $25 billion emergency loan plan for U.S. carmakers.
Senior Democrats are drafting legislation that would carve out part of the $700 billion Wall Street bailout for loans to the three major U.S. auto companies in exchange for a government ownership stake in the companies.They hope to push the measure through during a postelection session of Congress that begins Monday.
But the idea is running into resistance from Republicans and President George W. Bush, who are reluctant to back any additional money for the struggling industry.
