Daily Briefing

Tag : Plastic Pressure Regulator

Chrysler LLC said Monday that it will close one Missouri plantindefinitely this fall and cut production at another because ofslumping demand for trucks and other large vehicles. Officials saidthe automaker will shutter the St. Louis South plant, which makesminivans, effective Oct. 31. The St. Louis North plant, which makesfull-size pickup trucks, will reduce operations from two shifts toone. "We see no need for the capacity in the future," ChryslerPresident and Vice Chairman Tom LaSorda said. The moves affect2,400 jobs. LaSorda also denied rumors that Chrysler's new owners,Cerberus Capital Management LP, plans to sell the company inpieces. "Hogwash —- absolutely not being considered at all,"he said. Chrysler had an operating loss of about $300 million inthe first four months of the year, less than projected by CerberusCapital, according to documents provided to investors.
DEALS: Group to buy Graham Packaging
Dallas —- An investment fund led by financier Thomas O. Hickshas agreed to buy Graham Packaging Holdings Co. and take the makerof plastic juice and beer bottles public for $700 million, plus theassumption of $2.29 billion in debt and other costs. HicksAcquisition Company I Inc. said it believed the deal was thelargest ever between a special-purpose acquisition company and anindustrial company. Graham is based in York, Pa., and lost $206million on sales of $2.49 billion last year.
ECONOMY: Euro-zone inflation rises to record 4%
Brussels, Belgium —- Yearly inflation in euro nations hit arecord 4 percent in June, the EU statistics agency Eurostat saidMonday, adding pressure on the European Central Bank to raiseborrowing costs. ECB officials have signaled that they may boosttheir key interest rate on Thursday from 4 percent to 4.25 percentto try to cool prices —- although that would raise costs forhome buyers and companies seeking credit, further slowing theeconomy.
FINANCIAL: Rates mixed in Treasury auction
Washington —- Interest rates on short-term Treasury billswere mixed in Monday's auction, with yields on three-month billsrising while six-month bills declined. The Treasury Departmentauctioned $23 billion in three-month bills at a discount rate of1.900 percent, up from 1.855 percent last week. Another $22 billionin six-month bills was auctioned at a discount rate of 2.135percent, down from 2.255 percent last week. Separately, the FederalReserve said Monday that the average yield for one-year Treasurybills, a popular index for making changes in adjustable-ratemortgages, fell to 2.46 percent last week from 2.57 percent.
FOOD / BEVERAGE: Burger King to try new meal for kids
Burger King Corp. is launching a new marketing and promotionalcampaign. "A large part of our customer base is parents withchildren," said Russ Klein, president of global strategy, marketingand innovation. "As a parent, the challenge is always trying to getthe kinds of things you want to but have some dimension of fun."The centerpiece of the effort, Klein said, is a new kids mealfeaturing a 4-ounce serving of Kraft macaroni and cheese, lowfatmilk and the company's "Fresh Apple Fries," which are uncookedapple slices shaped like french fries and served with low-fatcaramel dipping sauce. The meal will go on sale Monday for $3.49and will be a permanent fixture on Burger King's menu.
Deal to establish MillerCoors done
Denver —- SABMiller PLC and Molson Coors Brewing Co. saidMonday that they closed on their transaction combining their U.S.and Puerto Rico operations into MillerCoors. The companies saidMillerCoors will begin operating as a combined entity today. Theyhave not said where the headquarters will be. SABMiller,headquartered in London, and Molson Coors, based in Golden, Colo.,announced in October that they would form a joint venture to marketand distribute beer in the United States and Puerto Rico. The dealis aimed at helping the companies compete against Anheuser-BuschCos., which has about half the U.S. market.
HEALTH CARE: Drugstore data systems to merge
Washington —- The drugstore and pharmacy benefit managementindustries today will announce a combination of their informationsystems in order to boost electronic prescribing by physicians. Themerger combines the RxHub network, operated by CVS Caremark Corp.,Express Scripts Inc. and MedcoHealth Solutions Inc., withSurescripts, which is run by the drugstore industry's two maintrade groups. "This merger sets aside historic economic andpolitical differences to do what is necessary to advance paperlessprescribing and the secure exchange of critical information," saidJohn Driscoll, president for new markets with MedcoHealthSolutions.
HOSPITALITY: Cuba tourism law sparks lawsuits
Miami —- Dozens of Florida-based travel agencies have suedthe state trying to block a new law that would make it harder tobook trips to Cuba. In the lawsuit filed Monday in Miami federalcourt, the agencies argue the measure could drive up costs and putthem out of business. The law would force the agencies to put up a$250,000 state bond in some cases if they book tours to Cuba. Thebond pays for investigating the agencies to make sure they don'tviolate federal law.
LEGAL: Court orders eBay to pay LVMH
Paris —- A French court on Monday ordered online auctiongiant eBay to pay 38.6 million euros, or $61 million, in damages toFrench luxury goods company LVMH in the latest round in along-running legal battle over the sale of counterfeit goods on theInternet. LVMH, a maker of high-end leather goods, perfumes andother fashion and luxury products, successfully challenged eBay fora second time in the French court, arguing that 90 percent of theLouis Vuitton bags and Dior perfumes sold on eBay are fakes. Thecourt ruled that eBay, which earns a commission on the sales, wasnot doing enough to stamp out counterfeit sales. EBay vowed toappeal the ruling.
State of Florida sues Countrywide
Countrywide Financial Corp. was sued by the state of Florida forfraudulently making loans to homeowners who couldn't afford torepay. In a complaint filed Monday in a state court, AttorneyGeneral Bill McCollum said the company and its founder, AngeloMozilo, violated the state's deceptive-trade-practices law."Subprime loans were approved for borrowers who were not qualifiedand could not afford such loans," McCollum said in the complaint,which seeks unspecified damages.
MANUFACTURING: Boeing to pay $3 million fine
Chicago —- Boeing has agreed to pay a $3 million fine forexceeding value limits on the purchases of parts from foreignsuppliers for its military products. Boeing spokesman Tim Nealesaid Monday that the company discovered the violations and reportedthem to the State Department. The airplane manufacturer violatedmanufacturing license agreements required under federal regulationsgoverning international arms sales. The suppliers were inAustralia, the United Kingdom, Canada, Israel, Italy, Japan, theNetherlands, Switzerland and Austria.
REAL ESTATE: Wachovia to end short-pay loans
Charlotte —- Wachovia Corp. will quit offering a mortgagepayment option that allows borrowers to pay less each month thanthe bank charges in interest. The choice to pay less was one of theoptions of Wachovia's controversial Pick-A-Payment mortgages, whichoffer customers four different payment options each month. Wachoviatold The Associated Press on Monday that it will no longer offerthe less-than-full interest payment option on all new home loans.Critics have said such paying less than the amount of interestcharged can lead to negative amortization, in which the borrowerowes more than the value of their home.