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Show PAGE 4 SATURDAY, JUNE 21, BUSINESS EDITOR NATIONAL BRIEFING Stocks tumble as oil prices rebound Grace leong V V V Dow Jones Nasdaq S&P500 Gold Silver Final Final Final Per ounce 11,842.69 -- 220.40 2,406.09 -- 55.97 1,317.93 -- 24.90 $901.30 -- 50.40 Per ounce $17,387 -- $0,070 V - 44-2910 2008 gleongheraldextra.com THE DOLLAR EXCHANGING Yen Euro Pound Canadian dollar Mexican peso Friday Thursday 107.18 $1.5625 $1.9771 1.0196 10.2881 107.96 $1.5499 $1.9739 1.0147 10.3199 Stocks tumbled Friday on escalating NEW YORK worries about the financial and automotive sectors and rebounding oil prices. The major indexes fell by more than 1 12 percent, and the Dow Jones industrial average gave up more than 200 points to end at its lowest levels in three months. While investors have seen other triple-digdays in the past year since concerns about the economy began emerging, the Dow's first finish under 12,000 since could deal investors a psychological blow. An afternoon downgrade of automakers helped draw out sellers in the stock market while Treasury prices jumped as investors sought the safety of government debt. it mid-Marc- h Ford delays production of new pickup truck DETROIT -r Faced with a continuing plunge in pickup sport utility vehicle sales, Ford Motor Co. on Friday tried to deal with the mess by delaying production of the new pickup truck and announcing further factory cuts. Shortly after Ford's announcement, Standard & Poor's Ratings Th Services said it is truck and juiJi' reviewing ratings on Ford, Chrysler LLC and General Motors China faces penalty tariffs on pipe Intl. Trade Commission decides in favor of U.S. steel industry costs. China fuel price hike may not sap demand SHANGHAI, China Chinese motorists, long accustomed U.S. monthly trade merce Department imposed penalty tariffs on imports of Martin Crutsinger tariffs ranging from 99 percent Chinese glossy paper, but the v : THE ASSOCIATED PRESS to 701 percent will be imposed trade body blocked the tariffs on Chinese imports of circular by ruling that the domestic ' U.S. WASHINGTON welded pipe, a form of pipe industry had not proven it was steel pipe manufacturers, who used in a variety of construcbeing materially harmed by tion jobs, such as home plumbhave been battling a surge in the imports. In the, pipe case, the Comimports from China, won a ing and sprinkler systems. For more than two decades, merce Department found the major victory Friday when the Chinese government was International Trade Commisthe US. government had refused to consider subsidy cases providing unfair subsidies. It sion cleared the way for the also found that the pipe was imposition of stiff penalty tar- against the Chinese governiffs for the next five years. ment because China was classi- being sold in this country befied as a low the cost of production, a The commission voted economy. that the U.S. industry was However, the Bush adminis- practice known as dumping. The penalty tariffs for the tration, facing increasing anbeing harmed by the import of circular steel pipe. The deger over soaring trade deficits government subsidies, known cision marked the first time as countervailing duties, and with China, reversed course last year and announced it a U.S. industry has won a the antidumping tariffs were decision to impose tariffs on would treat China in the same upheld by the trade commisa Chinese product based on sion vote. way as other Countries in disChinese exports of circular the argument that the Chinese putes involving government pipe have exploded since 2002, government was unfairly sub- subsidies. The pipe case is the first to rising from 10,000 tons that sidizing a Chinese industry. The ruling means penalty clear all the government hur year to 750,000 tons in 2007. 5-- 0 Corp. with the possibility of lowering them due to the deteriorating U.S. auto market. Also, Moody's Investors Service changed its ratings assessment for Ford and Chrysler from stable to negative. Lower credit ratings can boost a company's borrowing dles for the tariffs to go into effect. Last year, the Com- The U.S. trade deficit in goods and services: Imports Seasonally adjusted 200 Exports 180 $155.5 billion 160 140 120- - A M J J ASONDJ .2007 FM A '08 20 non-mark- to cheap gas, seemed to take in stride a government decision to boost fuel prices Friday by as much as 18 percent. While higher prices for China's fuel will inevitably squeeze consumers at both filling stations and grocery stores, analysts say it is unlikely to make an immediate or huge dent in the country's hunger for oil. China's economy is booming,, and people are buying cars and air conditioners as their incomes grow. There is huge demand in a country of 1.3 billion, where per capita pent-u- p energy consumption remains far below western nations. $216 4 billion $220 billion 40 60 80 Trade deficit $60.9 billion SOURCE: Department of Commerce AP The U.S. industry said the increase in imports had resulted in the loss of 500 pipe worker jobs, representing about of the work force. one-quart- d Delta to cut some U.S -- China flights Businesses advised to secure chemicals THE The federal government will tell 7,000 WASHINGTON terbusinesses next week that they are considered high-ris- k rorist targets because they house large amounts of chemicals. The sites which range from major chemical plants to will universities, food processing centers and hospitals need to complete a vulnerability assessment so the government can decide how to regulate their security measures in the future. U.S. intelligence officials say terrorist organizations, infavor chemical attack methods because of cluding the severe consequences they can inflict. "I'm try ing to complicate these guys' lives," said Bob Stephan, assistant secretary of infrastructure protection at the Homeland Security Department. ASSOCIATED PRESS ATLANTA Delta Air Lines Inc. will cut the number of flights it offers between the U.S. and China later this year Landers said Delta's route from Atlanta to Shanghai is important to the airline and will continue to be in the fu- ture.';,' He said Delta received a route it fought to get for permission from the Depart1 ment of Transportation to fly years. The carrier projects that between Atlanta and Shanghai demand for its flights between five days a week, instead of Atlanta and Shanghai, which the current seven days a week, it began offering March 31, starting Nov. 7. Landers said won't be as strong this winter the schedule would return to normal in May 2009. as it is how. It plans to return to its current schedule on the The DOT's order converted route next spring. two of Delta's Atlanta-Shanghd Asked Friday if the soaring frequencies from cost of fuel played a role in service to seasonal the decision, Delta spokesman service. Kent Landers said, "Fuel has During the affected time an impact on the entire netperiod, there will be no Delta work and we watch that very flight from Atlanta to Shang' ' hai on Wednesdays and closely. But this is a situation where we're the Fridays, and there will be no matching f right profile to the market and Delta flight from Shanghai to " " """ t '. Atlanta on Thursdays and Satespecially what we're expecting in the winter." , urdays, Landers said. The price of a barrel of oil That means the number of has doubled in the last year. flights each week Delta offers In May two other carriers between the two cities would that only months earlier won be cut from 14 to 10. While many airlines, includfederal approval to begin highly coveted routes to China ing Delta, have been cutting said they would postpone the domestic capacity because of launch of the new services record fuel prices, Delta has because of high fuel costs. The been increasing international routes in question included capacity. Also Fridayr Atlanta-base- d planned United Airlines service Delta said it will offer a rebate between San Francisco and of its $25 fee for checking a Guangzhou, and US Airways ft second bag to customers who flights between Philadelphia and Beijing. purchased tickets from Delta At the time, representatives prior to April 9 and traveled on for American, Continental and or after May 5. TED S. WARRENAssociated Press Northwest said The issue involves the date they were not A Delta Airlines in International Tac Sea the new fee was announced at jet parks Airport making any changes in their Seattle. and the date the plans for new China passenger April 9 routes next year. new fee took effect May 5. , year-roun- Grupo Modelo CEO resigns from A-- B board ST. LOUIS The head of Mexican beer company Grupo Modelo is stepping down from the board of Anheuser-Busc- h Cos. Inc. as the remaining directors of the iconic American brewer of Budweiser are considering a $46 billion takeover offer from Belgian brewer InBev. The resignation of Carlos Fernandez, president and chief executive of Grupo Modelo SAB, was announced Friday the same day that news reports say the Anheuser-Busc- h board was to meet in St. Louis to consider InBev's $65 a share offer for the nation's largest brewer. Spokeswomen for both Anheuser-Busc- h and InBev declined comment on those reports. Anheuser-Buscshares slipped 38 cents to $60.67 Friday. The stock price has risen sharply since rumors of InBev's interest began earlier this spring. h Court lets pension fund buy Bell Canada TORONTO The Supreme Court of Canada ruled Friday that the $35 billion leveraged buyout of BCE Inc. the largest leveraged buyout in history can go ahead. The high court overturned a lower court ruling that the sale of BCE, the parent of telecommunications holding company Bell Canada, to the Ontario Teachers' Pension Plan and its minority U.S. partners wasn't in the interests of bondholders. f r -- r - " STOCKS OF LOCAL INTEREST Yesterday's performance of selected publicly traded companies SYM COMPANY AA ALC0AINC ABSY ABSOWTESKYINC LAST CHANGE SYM COMPANY MU MICRON MYGN MYRIAD GENETICS 0.36 NATR NATURES 0.82 NOvl NOVELL INC 0.97 NUS NU SKIN ENT INC 0.34 NWN NORTHWEST 37.34 1.78 0.0330 0.0000 40.43 41.34 32.10 LAST CHANGE TECHNOLOGY 723 021 50.02 0.35 720 0.15 ABX BAfiRKKGOLDCP AEP AMER ELECTRIC AKj AMER AMD ADV MICRO DEVICES AMGN AMGEN 45.17 0.31 OMTR OMNITURE,INC 22.16 BAC BK OF AMERICA CP 27.10 1.04 PCG PG&E CP 39.50 BAM BROOKFIELD ASSET 34.33 1.11 Q QWEST BU BALLCP 0.75 RZ RASER TECH INC POW GROUP INTL INC 6.99 51.72 - - SUNSHINE NAT GAS COMM 6.18 0.17 15.66 020 4729 INTL - 0.38 0.65 - 0.50 0.44 BMY BRISTOL MYERS SQIBB 19.57 0.35 SCOXQ SCO GRP INC (THE) crriGRouPiNC mo o,87 shld sears hldgscorp 74.75 2.50 0.82 Sll SMITH INTL INC 79.13 1.65 1.51 SKYW SKYWESTINC 13.88 1.41 0.00 19.52 COST COSTCO 68.73 CVX CHEVRON WHOLESALE CORP - 96.62 - 024 SNTO SENTOCORP 0.05 DAL DELTA AIR LINES NEW 5.68 - 0.70 STR QUESTARCP 67.92 CHS WALT 31.94 - 0.95 SY SYBASE INC 31.57 DNEX DIONEXCP 7022 - 0,64 T AT&T ERIC LM ERICSSON ADR 11.69 - 025 TGT TARGET CP 49.98 FTR ENTERGY CP 120.98 1.17 TRV THE TRAVELERS CO 45.63 FC FRANKUN 8.78 0.17 UDR UDRINC 23.73 GE GEN ELECTRIC CO 27.38 0.53 UNH UNITEDHEALTH 27.12 0.77 HRB H R BLOCK INC 20.74 2J8 USB US BANCORP 29.67 025 HSK HENRY 51.53 0.09 USEG US ENERGY CORP IBM INTL BUSINESS MACH INTC INTEL CP JBLU JETBLUE AIRWAYS JCP PENNEYJCCO JWN NORDSTROM 33.78 LEE 4EE COVEY CO SCHEIN INC CP INC ENTERPRISES INC 122.74 - 228 USNA USANA 22.37 - 0.48 UTMD UTAH MEDICAL 3.95 0.35 VZ VERIZON 3688 037 WB WACHCMACP 1.16 WEN WENDYS 0.07 WFC 4.69 - 34.43 HEALTH 5C1EN PROD - 0.77 - 0.72 1.52 1.82 0.79 - 3.14 28.34 0.94 0.02 - 0.13 025 29.00 3538 1.12 17.43 034 30.05 0.44 WELLS FARGO & CO 24.50 1.13 COMMUN INTL INC LUV SOUTHWESTAIRUNES 14.11 0.69 WMT WAL MART STORES 5626 1.43 KKK MCKESSON 57.09 1.04 WNI SCHIFF NUTRIT INTL 5.94 0.04 MER MICOCMNSTK 35.95 1.74 X UNITED STATES STEEL MER-- MERRILL LYNCH 15.12 1.11 XEL XCR MMSI MERIT MEDICAL SYS 15.91 0.03 ZION SONS MSFT MICROSOfTCP 2823 0.70 CORP ENERGY INC BANCORP nearly double gas mileage 182.79 20.45 32.09 0.62 - 0.37 009 ' - ALTO t. DAILY ' first motivation is to be green," Sevim said. "We are doing everything in our power to promote efficient vehicles." PALO ALTO, Calif . With The shop is looking at installthe backdrop of a nation caught in the grip of skyrocketing fuel ing the most proven system prices, a San Carlos, Calif., auto available, A 123 Systems, which and repair shop is trying to convert has been crash-testeV' certified, or Energy CS, which Toyota Priuses and possibly is a design that Pacific Gas & other hybrids to plug-in- s that Electric is testing. But other kits could be charged overnight A 2007 Toyota Prius. available can be installed on a outlet and a standard through car. get even better gas mileage. "What is nice about it, it is of Eric Sevim, a "It is just now entering sort A Japanese Auto Repair just simply a lithium ion batof the public arena," said Pat with his brother Adam, said he tery pack and there is no additional maintenance," Sevim wants to start converting hyCadam, owner of Pat's Garage. said. "For the past couple of years brids by Experts Pat's Garage in San Franin the field have called his plans we have been doing the beta cisco has installed the A 123 ambitious, but Sevim says his testing. We are going to start research the past year conSystems plug-i- n conversion selling to the public." on Google vehicles and other vinces him it can be done if he Cadam said he would not be makes the right contacts. companies' cars. It is available opposed to other repair shops "I wouldn't say the gas prices nationwide at six places, four of in the area offering the A123 them Toyota dealers. are the first motivatioa The System because his shop played PALO c CMCSKCOMCASTaASPCl kit for Prius claims to Plug-i- n Mark Abramson 9 8.36 Car shops to offer upgrades on hybrid cars NEWS ll'H ri MlMHiill niMUMWitTin """'"S McClatchy-Tribun- a pivotal role in developing it, and his goal is to get as many of the plug-in- s on the streets as possible. Already, 150 people have lined up to have their Priuses converted to plug-in- s before the end of the year at Pat's Garage. The conversion would boost a Prius's gas mileage from 4045 miles per gallon to mpg. 70-9- 0 |