In today’s news update we will hear from AIG, Freddie Mac, Fannie Mae, Toyota and updates on the job market.
AIG Plans to Sell Remaining Transatlantic Stake
American International Group Inc. plans to sell its remaining 13.8% stake in casualty reinsurer Transatlantic Holdings Inc. held by its American Home Assurance Co. subsidiary.
The 9.19 million shares AIG wants to sell would be worth about $494 million based on Translantic’s closing share price on Thursday.
Transatlantic shares were down 3.7% in recent trade at $51.77, while AIG rose 4.3% to $27.87 amid a broad market gain.
Rep. Frank questions safety of Fannie Mae, Freddie Mac investments
An influential voice on Capitol Hill has unexpectedly called into question the safety of investing in Fannie Mae and Freddie Mac, raising the specter that investors who have lent money to the two firms or bought their mortgage-backed securities could one day suffer losses.
The comments by Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, come despite the assumption of many investors that investments in the two mortgage finance giants are risk-free. Until now, federal officials — who took over Fannie and Freddie two years ago to save them from collapse — have signaled to the market that lending the companies money is just about as safe as lending to the U.S. government itself.
Toyota incentives rouse would-be buyers
NEW YORK (CNNMoney.com) — Toyota’s new incentive plan appears to have piqued the interest of buyers looking to snag a good deal, reports showed Thursday, even as the automaker’s recall woes linger.
Edmunds.com and kbb.com, Web site of Kelly Blue Book, both reported significant increases in traffic among users expressing serious interest in Toyota vehicles since the automaker announced a new incentive plan on Tuesday.
Jobs report shows unemployment unchanged
NEW YORK (CNNMoney.com) — As severe winter storms crippled East Coast cities, the U.S. economy shed thousands of jobs in February, according to a government report released Friday. But the unemployment rate remained unchanged.
The Labor Department said the economy lost 36,000 jobs in the month, fewer than the 68,000 jobs economists were expecting, according to a survey conducted by Briefing.com.
In today’s news update we feature links to the job rate, Obama’s meeting with the Dalai Lama, and Toyota’s apologies for the recalls.
Jobless Rate Falls to 9.7%; U.S. Sheds 20,000 Job
The U.S. unemployment rate unexpectedly declined in January, but the economy continued to shed jobs and revisions painted a bleaker picture for 2009, casting doubt over the labor market’s strength.
The unemployment rate, calculated using a household survey, fell to 9.7% last month from an unrevised 10% in December, the Labor Department said Friday. Economists surveyed by Dow Jones Newswires had forecast the jobless rate would edge higher to 10.1%.
Toyota’s Chief Steps Forward to Apologize for Problems
NAGOYA, JAPAN — The president of Toyota apologized at a hastily arranged news conference Friday night for the quality problems that led to the recall of more than nine million cars worldwide.
Analysis: Obama-Dalai Lama meeting only option
WASHINGTON — Just a week after enraging China with an arms sale package for rival Taiwan, President Barack Obama risks more damage to this crucial relationship by agreeing to meet with the Dalai Lama in two weeks.
In today’s news updates we provide links to the current situation in Haiti, an update on arms in North Korea and Toyota’s plans for the hybrid cars by 2011.
Look here for news updates on the aftermath of a 7.0 earthquake that struck Haiti. All times are Haiti local time, which is the same as Eastern Standard Time in the U.S. and five hours behind GMT.
North Korea’s Kim calls for stronger army amid tension
SEOUL, South Korea — North Korean leader Kim Jong Il said his country must bolster its armed forces, state media reported Sunday, two days after his regime warned it would launch a war against South Korea if necessary.
Kim’s all-powerful National Defense Commission had threatened Friday to initiate a sacred “retaliatory battle” against the South in anger over its reported contingency plan to cope with potential unrest in the communist country. The commission also warned it could break off all dialogue and negotiations with the South.
Toyota shooting for one million hybrids by 2011
Toyota wants to be producing 1 million hybrid cars worldwide a year by 2011, reports Reuters, quoting Nikkei business in Tokyo. That would likely be double the number of hybrids it built last year.
Among the 10 new hybrid models planned in the next few years, Toyota showed off one hybrid concept for the U.S. at last week’s North American International Auto Show in Detroit. It’s the FT-CH concept, which would be smaller, cheaper car more along the lines of the Corolla. In addition, Toyota’s brass disclosed that they plan to turn Prius into a family of cars.
