BUSINESS& finance

N E W S C H I E F >> W W W. N E W S C H I E F. C O M T h u r s d a y >> N o v em b e r 2 0 , 2 0 0 8 5B

thursday
nov.20.2008

for up-to-the-minute business news from around the nation and world, go to newschief.com

INBRIEF
Lakeland resident
named to board
>> LAKELAND — Jason W.
Brown of Lakeland was
appointed to Cornerstone
Hospice Foundation’s board
of directors.
The nonprofit group’s Polk
County operational center is
on Havendale Boulevard in
Winter Haven.
Brown graduated from
Florida Southern College
with a bachelor’s degree
in communications. He is
the weekly seminar host
and speaker for One Source
Financial Inc. on topics
centered around Financial
Planning. Brown, who is
married and has two daugh-
ters, is a former candidate
for Polk County Commis-
sioner District 1.
Dow falls below 8,000; S&P at 5-year low
Economic worries caused across-the-board selling
By JOE BEL BRUNO recession might be even more corporate America, slipped 6.12
and SARA LEPRO protracted if Capitol Hill is percent to 806.58; and the Dow
The Associated Press unable to bail out the troubled gave up 5.07 percent to 7,997.28.
NEW YORK — Wall Street auto industry. Both closed at their lowest lev-
hit levels not seen since 2003 on Investors also scoured eco- els since March 2003.
Wednesday, with the Dow Jones nomic data that included min- The financial crisis has
industrial average plunging utes from the last meeting of already wiped out $6.69 tril-
below the 8,000 mark as the fate the Federal Reserve in which lion of value from the S&P
of Detroit’s Big Three automak- policymakers lowered projec- 500 since its October 2007
ers amid a slumping economy tions for economic activity this high, and many fear more is
disheartened investors. year and next. Economic wor- to come. Stocks have traded
The Associated Press
A cascade of selling occurred ries caused across-the-board with high volatility in the past
in the final minutes of the selling, with financial stocks few months, with the major in- A man checks stock prices online Wednesday at a TD Ameritrade
session as investors yanked particularly hard hit. dexes soaring only to plunge brokerage in New York. Wall Street struggled to find a direction
money out of the market. For The S&P 500, widely consid- an hour later as the market Wednesday, as investors, already nervous about the fate of the nation’s
many, the real fear is that the ered the broadest snapshot of looks for a bottom. top automakers, scoured more economic data in search of some relief.

Los a ngeles au to show

Oil falls while U.S.
cuts driving

Consolidation Likely
>> SIOUX FALLS, S.D. — Oil
slipped below $54 a barrel
Wednesday as stock markets
across the globe fell and yet
another U.S. government re-
port illustrated the disarray
in the housing market.
U.S. motorists, stung by
record gasoline prices, job
losses and falling home
prices, left the roadways
in droves, logging almost
11 billion fewer miles in
September, according to the
Transportation Department.
Governments, businesses
and consumers have slashed
energy expenditures, which
has halved the price of crude
since record highs in July.
Light, sweet crude for De-
cember delivery fell 77 cents
to settle at $53.62 a barrel on
the New York Mercantile Ex-
change, about where prices
were in January of 2007.

BASF temporarily
closing 80 plants
>> FRANKFURT, Germany
— Chemical company BASF
SE said Wednesday it is
temporarily closing 80 plants
worldwide due to slumping
demand and cutting produc-
tion at 100 more, including
facilities in Texas and Louisi-
ana. Some 20,000 workers are
affected.
It also abandoned its goal
to match last year’s profit,
citing slowing demand for its The Associated Press
products, particularly from
automotive customers. The Ford Fusion Hybrid
BASF shares plunged 13.7 is seen Monday at the
percent to end at 21.96 euros Ford Product Design Center
($27.67) in Frankfurt. in Dearborn, Mich. Ford unveiled
BASF spokesman Gareth the hybrid version Wednesday at the Los
Rees said the shutdowns and Angeles auto show.
slowdown have already begun
and will extend into January.
Workers were being encour-
aged to take vacation time and
reduce their overtime.
Nissan CEO says auto crisis will probably lead to companies combining
Construction sinks By DAN STRUMPF global auto market that the tion or other combination as sive and suggested a lack of
to new record low The Associated Press auto industry is facing will U.S. automakers burned up L.A. AUTO SHOW enthusiasm from Chrysler’s
>> WASHINGTON — Construc- LOS ANGELES — Nis- knock out some competi- cash because of a sales melt- side was to blame.
tion of new homes plunged san Motor Co. and Renault tors. He pointed to the U.S. down due to the U.S. economic “We are not convinced that
last month to the lowest level SA Chief Executive Carlos financial industry, which downturn. The Los Angeles Auto Show any alliance can take place if
on records going back nearly Ghosn said Wednesday that has seen key players recently GM said this month it was opens to the public Friday after there is no mutual appetite,”
50 years as U.S. builders he expects the current cri- disappear. setting aside considerations two days of media previews, Ghosn said. “If you’re in a
slashed production while sis in the auto industry will “We’re still stuck in a situa- for a “strategic acquisition” but GM and Chrysler aren’t situation where someone is
Wall Street nosedived. soon lead some carmakers to tion where credit is not flow- to focus on its immediate unveiling any new models. excited about something and
Embattled homebuild- consolidate. ing normally, and the reces- cash-flow problems, and some GM had planned to unveil the other is skeptical, it’s not
ers, who enjoyed a five-year Ghosn made his remarks at sion that began in the United analysts said that could give its new Buick LaCrosse sedan going to work. Alliance is like
boom, are now building new the Los Angeles Auto Show States is not only deepening new life to a deal between but scaled back its presence marriage.”
homes and apartments at a while the chief executives of but spreading across the Chrysler and Nissan-Renault, to focus on the company’s While the auto industry’s
record-low pace, according General Motors Corp., Ford globe,” Ghosn said. “It’s fair which would most likely be in- financial problems. situation is most distressful
to government data released
Motor Co. and Chrysler LLC to say that no one, no one terested in acquiring certain in the U.S., where October
Wednesday. New building
permits, a barometer of fu- were in Washington making had predicted how the global parts of Chrysler’s business sales fell 32 percent to their
ture activity, also plummeted their case to the House Finan- economy would be so volatile rather than the entire com- Ghosn acknowledged that lowest rate in 25 years, foreign
to the lowest pace on record. cial Services Committee for in 2008.” pany. Nissan already has an Nissan-Renault had been in companies also are starting to
With construction drop- $25 billion in loans to stay in Both GM and Nissan were agreement with Chrysler to talks with Chrysler about an see sharp sales decreases be-
ping, the number of unsold business. reportedly in talks with build a subcompact car for the alliance two years ago, but cause of the global economic
homes should fall quickly in Ghosn said the weakening Chrysler about an acquisi- U.S. company. said the talks were inconclu- slowdown.
the coming months, wrote
Ian Shepherdson, chief U.S.
economist at High Frequency
Economics.

Report: Economy Survey shows Floridians plan to reduce holiday spending

hitting hospitals
>> TRENTON, N.J. — The dis-
mal economy has American
The Associated Press
GAINESVILLE — ’Twas the month
“The 2008 holiday season will be one of the worst for Gift cards, however, continue to ap-
peal to consumers, with more than 60
hospitals ailing, with new
data showing declines in
before Christmas and all through the
mall, not many Floridians were shop- retailers in decades. In sharp contrast to previous percent indicating they will spend the
same or more for them than in 2007, the

years, decreased spending intentions were reported

overall admissions and
elective procedures, plus a
significant jump in patients
who can’t pay for care, the
American Hospital Associa-
tion said Wednesday.
Hospitals also have been
hurt by losses on their in-
vestments due to the turmoil
on Wall Street, and many
are finding it more expen-
sive to borrow money — if
they can at all, according to
a report from the associa-
tion, which represents about
5,000 U.S. hospitals.
From News Chief wire reports
ping, their wallets were small.
Tough economic times are forcing
Florida consumers to drastically cut
back on plans for holiday spending,
according to surveys conducted in
September and October by the Uni-
versity of Florida Bureau of Economic
and Business Research. More than 500
consumers participated each month in
the telephone survey. The polls have a
margin of error of 3 percent.
“The 2008 holiday season will be one
of the worst for retailers in decades.
In sharp contrast to previous years,
decreased spending intentions were
reported across all income brackets,”
said Barton Weitz, executive director of
surveys showed. Consumers, however,
are staying away from buying gift cards
from retailers having financial difficul-
across all income brackets.”
ties, Weitz said.
Department and specialty stores will
be vulnerable to downturns in sales,
barton Weitz  but discounters such as Wal-Mart and
executive director of the David F. Miller Center for Retailing Education Target may have opportunities to lure
and Research at the University of Florida middle and high-income shoppers into
their stores, Weitz said.
the David F. Miller Center for Retailing dropped again in October to $802. Stores selling luxury items will suf-
Education and Research at UF. The bad news extended to shopping fer, Weitz said, adding that for the first
Consumer plans for spending fell malls, which can expect a 15 percent time since 2003, high-income house-
as the holiday shopping season grew drop in the number of consumers plan- holds, defined as those making more
closer. The September survey showed a ning to shop there, compared with 2007. than $100,000 a year, expect to decrease
38 percent decrease from last year, from Online shopping is expected to drop by spending. He said data only exists for
$1,328 per resident to $824. The average 1 percent. the last five years.