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NEW THIS UPDATE:
— Adds: LIPITOR SALES, DELTA-AMR
— Updates: WALL STREET, ORANGE JUICE-FUNGICIDE, EUROPE-FINANCIAL CRISIS, TARGET-MARKETING, EUROPE-INTEREST RATES
TOP STORIES:
ECONOMY
WASHINGTON — America's retailers enjoyed a record 2011 and their first $400 billion sales months ever. But the final month of the year was a dud. Analysts said they still expect consumers to help the economy strengthen further, especially because businesses have stepped up hiring. More jobs mean more people with money to spend. Incorporates BC-US--Retail Sales, BC-US--Unemployment Benefits and BC-US--Business Inventories. By Economics Writer Martin Crutsinger.
AP Photos.
With:
— ECONOMY-GLANCE — A guide to the various reports that measure consumer spending.
EUROPE-FINANCIAL CRISIS
MADRID — Spain and Italy give financial markets a boost as they successfully raised nearly $27.98 billion in two keenly watched debt auctions that showed renewed investor confidence in the countries' attempts to get a grip on their debt problems. By Ciaran Giles and Colleen Barry.
AP Photos.
With:
— EUROPE-INTEREST RATES — The European Central Bank leaves its key interest rate unchanged at 1.0 percent as bank President Mario Draghi spots signs that the troubled eurozone economy is steadying. AP Photo.
GADGET SHOW-PHONES YOU FEEL
LAS VEGAS — Sure, today's phones can deliver the sound of a heartbeat. But how would you like to feel the throbbing by touching the screen? Some manufacturers want to replace the crude vibration motors in today's handsets with something that provides a wider range of sensations, allowing you to feel the rumble of a Harley or the reverberation of a shotgun blast. By Technology Writer Peter Svensson.
AP Photos.
ORANGE JUICE-FUNGICIDE
WASHINGTON — Coca-Cola Co. acknowledges it was the company that alerted federal regulators about low levels of fungicide in its own orange juice and in competitors' juice, prompting juice prices to rise and increased government testing for the residue. By Mary Clare Jalonick. Incorporates BC-US--Coca-Cola-Fungicide.
SMART SPENDING-MEDICAL BILLS
NEW YORK — Few things make me feel as clueless as a bill from my doctor's office. I don't recognize the abbreviations. I can't tell when I'm being charged too much. And it's not based on choices I'm aware of having made. I went to the experts, and here's what they told me about how to rein in my costs at each stage of a medical visit. By Business Writer Christina Rexrode.
AP Photo.
MARKETS & ECONOMY:
MORTGAGE RATES
WASHINGTON — Fixed mortgage rates fell once again to a record low, offering a great opportunity for those who can afford to buy or refinance homes. But few are able to take advantage of the rates. Freddie Mac says the average rate on the 30-year fixed mortgage fell to 3.89 percent. That's below the previous record of 3.91 percent. By Business Writer Derek Kravitz.
AP Photo.
With:
— MORTGAGE RATES-GLANCE — Mortgage rates for the past 52 weeks.
— CROP SIZE — The government says it expects no real change in next fall's tight corn supply, a factor that promises little relief from high food prices.
— BUDGET DEFICIT — The federal deficit was lower in the first quarter of the 2012 budget year than the same period last year — $322 billion vs $369 billion. Yet, the imbalance remains high by historical standards and should keep lawmakers debating tax increases and spending cuts through Election Day. Part of the reason for the lower deficit is an accounting quirk that shifted some early payments to the final week of the previous year's budget.
— FORECLOSURE RATES — About 1.9 million homes entered the foreclosure process in 2011, the lowest level since 2007 when the recession began, according to RealtyTrac.
WALL STREET
NEW YORK — Falling oil prices and strong bond auctions in Europe drive stocks to a higher close. By Business Writer Samantha Bomkamp.
AP Photo.
— OIL PRICES — Oil prices drop below the $100-per-barrel mark for the first time this year on rumors that Europe will delay an embargo of Iranian oil
— JAPAN-US-IRAN — Japan boosts the U.S. campaign to sanction Iran over its nuclear program, pledging to buy less Iranian oil, a day after China reacted coolly to the U.S. effort.
INDUSTRY:
TARGET-MARKETING
NEW YORK — Target is teaming up with unique specialty shops to offer limited edition merchandise, from dog biscuits to platform shoes, as it attempts to further distinguish itself from rivals. The company also confirms that it will test expanded displays of Apple products in 25 stores. By Retail Writer Anne D'Innocenzio.
AP Photos.
LIPITOR SALES
TRENTON, N.J. — Sales of Lipitor, the top-selling drug in history, have leveled off after a steep plunge following the start of U.S. generic competition. By Business Writer Linda A. Johnson.
— DELTA-AMR — Shares of Delta Air Lines Inc. rise after a report that the world's second-biggest airline may try to buy American Airlines parent AMR Corp.
— BELGIUM-DELHAIZE-US JOB CUTS — Belgian supermarket chain Delhaize is cutting almost 5,000 jobs in the U.S. as it closes underperforming stores, including 113 Food Lion locations.
— AIRLINES-DELAYS — The government says flights were on-time more often in November than a year earlier, and only one U.S. passenger plane was stuck on the ground for more than three hours.
— CZECH-BUDWEISER WARS — Anheuser-Busch Inc., part of the AB InBev NV international brewing giant, took a crucial step in its fight with state-owned Czech brewery Budejovicky Budvar over the Budweiser brand when it acquired its local Czech rival and its contested Budweiser Beer brand.
— SEARS-FINANCING — Lender CIT reportedly stops financing loans for Sears' suppliers, but the department store retailer downplays the move's significance.
— CVS CAREMARK-DRUG PRICING — CVS Caremark says it will pay $5 million to resolve allegations that one of its subsidiaries understated the price of several drugs on a Medicare website.
— HOME DEPOT-SEASONAL HIRING — Home Depot says it will hire 70,000 seasonal workers for the spring season. It's the biggest season for the home improvement retailer.
— TARGET-MARKETING — Target stores in May will begin selling limited edition merchandise from select specialty shops.
— CALIFORNIA BUDGET-FACEBOOK — What's good for Facebook could be very good for California's treasury: If the company goes public, the cash-strapped state stands to reap hundreds of millions of dollars in capital gains taxes.
TECHNOLOGY & MEDIA:
GADGET SHOW-GADGET WATCH ECOATM
The International Consumer Electronics Show in Las Vegas is all about the latest smartphones, tablet computers and other consumer-electronic devices. But what about the old gadgets? Don't they get any love? Actually, there was one machine, the EcoATM, that's designed to help consumers recycle their gadgets. Drop your old phone into the EcoATM, and the machine will give you cash in return. By Technology Writer Peter Svensson.
AP Photo.
— EARNS-INFOSYS — Quarterly profits at Infosys beat expectations, but the outsourcing bellwether warns of slower growth.
INTERNATIONAL:
BRITAIN-RBS
LONDON — Taxpayer-backed Royal Bank of Scotland says it will cut 3,500 jobs, part of a reorganization of its investment banking arm as it reins in its ambitions to be a global financial player. By Danica Kirka.
AP Photos.
NIGERIA-FUEL SUBSIDY-OIL
LAGOS, Nigeria — A major union threatens to stop the beating heart of Nigeria's economy — crude oil production — as part of a nationwide strike and protests gripping Africa's most populous nation. World oil prices climb on the news; Nigeria is the fifth-largest oil exporter to the U.S., and a shutdown would force American refineries to replace 630,000 barrels per day of crude. By Yinka Ibukun and Jon Gambrell.
AP Photos. AP Video.
CHINA-INFLATION
BEIJING — China's chronically high inflation edged down in December but stayed relatively strong as Beijing tried to stimulate its slowing economy. By Business Writer Joe McDonald.
AP Photos.
— BRITAIN-TESCO — Tesco, Britain's biggest retailer by sales, warns of minimal profit growth following one of its worst Christmas performances in years.
— CHINA-AUTO SALES — Vehicles sales in China rose just 2.5 percent in 2011, the slowest growth in more than a decade.
— IRELAND-GUINNESS — Guinness says it is building a new brewery base in Dublin, but will close two other plants in Ireland.
— DENMARK-VESTAS — The world's biggest maker of wind turbines by revenue plans to lay off 2,300 workers because of a slowing market.
COLUMN:
SMALL TALK
NEW YORK — It's natural for small business owners to focus on customers at the start of the year. Owners are looking for new business opportunities and making sure their relationships with existing customers stay strong. They need to shift some of their focus to their employees. Now is the time for owners to sit down with staffers to discuss what they'll do for them during the coming year. By Business Writer Joyce M. Rosenberg.
PERSONAL FINANCE:
SUZE ORMAN CARD
NEW YORK — Don't choose a prepaid card just because it's from Suze Orman. The personal finance guru this week introduced a prepaid card that she's touting as a "smarter way to stay debt free." Orman says that her Approved card costs just $3 a month "if you use it how I tell you to." But as with most prepaid cards, the amount cardholders ultimately fork over will vary significantly depending on their spending habits. Other features of the card are also worth some scrutiny. By Personal Finance Writer Candice Choi.
AP photo.
OF MUTUAL INTEREST-CANADIAN INVESTING
BOSTON — Investors searching outside the U.S. for investment opportunities may want to take a look next door. Canada is hot these days, with its wealth of oil and mineral resources offering a potential hedge against inflation. PIMCO has launched a fund that exclusively invests in Canadian bonds. And BlackRock, the biggest ETF provider is pitching an ETF that invests in Canadian stocks, which have easily outperformed U.S. stocks over the past decade. We'll assess the opportunities and risks to the north. By Personal Finance Mark Jewell
With:
CANADIAN INVESTING-GLANCE
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RESOLUTIONS-WEIGHT LOSS
You're finally going to lose that extra 15 pounds (didn't it used to be 10?) in 2012. But before you hand over the credit card to a gym or weight-loss program, take some time to make sure your weight problem doesn't become a financial problem. By Personal Finance Writer Eileen AJ Connelly
Eds: "Resolutions" from AP Personal Finance runs on Tuesdays and Thursdays in January. Available exclusively on AP Exchange/ AP Web Feeds.
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CENTERPIECE
Macy's big sales
The holiday shopping season was a bust for some of the nation's biggest retailers — they were forced to slash prices to get consumers to buy. And then there was Macy's. Financial analysts say its performance during the holidays makes it a stock worth buying.
COMPANY/INDUSTRY SPOTLIGHT
Cautious hiring
Home Depot is hiring 70,000 seasonal workers for the spring, the busiest time of the year for home improvement projects. That's the same number the retailer hired last year -- a sign that it's taking a conservative view of 2012.
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