AP Financial News Summary at 2:50 p.m. EDT
Economy Gets Another Inflation Warning
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NEW YORK (AP) _ The economy received another inflation warning on Wednesday, when a survey of industry executives showed that energy costs drove prices higher in September while business activity slowed in the services sector. The report reinforced expectations that the Federal Reserve would continue to raise rates as the economy struggles with rising fuel costs aggravated by Hurricane Katrina.
Motorola Cutting 1,900 Jobs Globally
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SCHAUMBURG, Ill. (AP) _ Motorola Inc. is cutting 1,900 jobs at 29 different U.S. and international locations in an effort to improve operating efficiency, the company said Wednesday.
Stocks Drop on Service Sector Reading
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NEW YORK (AP) _ Stocks extended their selloff Wednesday after a surprisingly weak reading on the service sector of the economy.
Energy Futures Slide on Inventory Data
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Oil and gasoline futures fell Wednesday after U.S. government data showed growing evidence of falling demand and traders shrugged off a decline in supplies.
Incoming DaimlerChrysler CEO’s Wife Fined
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BLOOMFIELD HILLS, Mich. (AP) _ Gisela Zetsche, the wife of incoming DaimlerChrysler AG Chief Executive Dieter Zetsche, was fined $500 and ordered to pay $2,500 in court costs Wednesday for her role in hosting a party at which more than 20 underage drinkers were ticketed.
Viacom Details Terms of Company’s Split
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NEW YORK (AP) _ Shareholders of Viacom Inc. will get half a share of the new Viacom and half a share of CBS Corp. for each share they currently hold when the media conglomerate splits itself into two companies, the company said Wednesday.
Freddie Mac to Buy Back Shares
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NEW YORK (AP) _ Freddie Mac Wednesday said its board has authorized the repurchase of up to $2 billion of common stock and $2 billion of preferred stock.
Katrina Bankruptcy Filers to Get Leeway
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WASHINGTON (AP) _ People filing for bankruptcy who were affected by Hurricane Katrina will get some leeway in meeting requirements of a strict new law.
Yum Brands 3Q Profit Up on China Sales
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LOUISVILLE, Ky. (AP) _ Yum Brands Inc. posted 16 percent growth in third-quarter profits Wednesday on the strength of resurgent sales in China coupled with solid U.S. performances by its Taco Bell and KFC restaurant brands. The fast-food company also raised its full-year forecast, and its shares rose more than 2 percent in late morning trading.
No Government Aid Expected for Airbus
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PARIS (AP) _ European governments are unlikely to pledge funding for the new Airbus A350 jet at the plane’s official launch expected on Thursday, a European Union official told The Associated Press on Wednesday.