In some editions yesterday, the Business section's Digest incorrectly reported Thursday's movement in the Dow Jones industrial average. The Dow rose 152.61 points, or 1.4 percent, to close at 11,035.70 Thursday. (Published 11/20/99)
The New York Stock Exchange has voted to increase the amount of money that day traders can borrow to buy stocks, despite worries by regulators that excessive borrowing has contributed to the steep losses of some of those investors, sources said. The exchange's governing board voted Nov. 4 to allow "qualified" day traders to borrow up to four times the amount of money in their accounts for intraday trading, the sources said. The NYSE now limits day traders' borrowing to twice the equity in an account, and accounts still could not exceed that level at the end of the trading day.
Vodafone Air Touch will raise its offer for German mobile phone rival Mannesmann today by as much as 18 percent, to $137 billion in stock and debt, a person familiar with the British company's plans said. Such an offer would be the biggest takeover bid ever.
Nearly three in five Americans plan to hold extra cash at New Year's time for fear of the year 2000 computer bug, according to a poll by Zogby International for Reuters. Of that group one in five termed it reasonable to squirrel away as much as a month or more of income. The Federal Reserve has ordered $50 billion in extra currency printed to allay any fears of a shortage.
The Federal Reserve Board and the Securities and Exchange Commission failed to adequately police the banks and brokerage firms that lent money to Long-Term Capital Management, the Greenwich, Conn., hedge fund that nearly collapsed a year ago, a report to be released today by the General Accounting Office will say, according to sources. The New York Fed, acting on the fear that the hedge fund's failure could disrupt the nation's entire economy, orchestrated a $3.6 billion bailout of the fund by lenders.
Consumer groups have asked the Office of Government Ethics to probe the conduct of former Treasury secretary Robert Rubin. The groups are concerned that after Rubin left office this summer, he may have pushed for legislation to revamp banking laws at the same time he discussed the possibility of becoming co-chairman of Citigroup, thereby violating federal conflict-of-interest law. Rubin has denied any wrongdoing.
Walt Disney Co. has received permission to resume using the logo for its Go Network of Internet sites. The reversal by two U.S. Court of Appeals judges of a lower-court ruling came just three days after Disney was ordered to remove the disputed logo from its Web sites and television stations. Disney appealed that ruling and is now free to use the logo until a decision is reached on that legal challenge, perhaps within a month.
Papa John's used false and deceptive advertising in ads targeting rival Pizza Hut, a federal jury in Dallas ruled. Jurors will consider awarding damages to Pizza Hut. The jury also said two of the ads Pizza Hut ran in response were false and misleading, but the judge expressed doubts that those ads should be punished with damages.
The Federal Communications Commission unanimously approved new rules forcing local telephone companies to share their lines with competitive providers of DSL (digital subscriber line) technology, which delivers high-speed Internet access over regular phone lines. Currently, customers who want DSL service from a competitive provider must buy a new telephone line, adding about $20 a month to the cost.
President Clinton said he will nominate Kathryn Shaw, an economics professor at the Graduate School of Industrial Administration at Carnegie Mellon University, to join his Council of Economic Advisers. Shaw, an expert in labor economics and human resource management, holds a bachelor's degree from Occidental College and a PhD in economics from Harvard University.
A judge declared a mistrial after jurors deadlocked in a class-action consumer lawsuit accusing Ford of a design defect that made millions of vehicles prone to stalling. The suit, on behalf of 3.5 million current and former California owners of Ford vehicles in model years 1983 through 1995, claims the vehicles stalled because an ignition device was mounted in the wrong place. Ford has denied any defects.
Chevron said it agreed to pay an Occidental Petroleum unit $775 million to settle a long-standing lawsuit over Gulf Oil's termination of a merger deal with Cities Service.
A Little Rock accountant agreed to pay $144,596 to settle allegations that he profited from insider information about merger discussions between Mobil and Exxon. According to the Securities and Exchange Commission, Stephen B. Humphries bought Mobil options after he learned about the proposed deal from someone with whom he had a fiduciary relationship who had been approached confiden- tially by Mobil to advise the firm. The man in the middle was Clinton friend and former chief of staff Thomas F. "Mack" McLarty, who was retained by Mobil last November. Neither Mobil nor McLarty was cited by the SEC.
Abercrombie & Fitch must stop selling its catalogue to minors becaue it is too sexually explicit, Michigan Attorney General Jennifer Granholm said in a letter to the clothier. Granholm said the "Naughty or Nice" Christmas catalogue contains descriptions of sexual material that cannot be distributed to minors under Michigan law. The catalogue includes photos of sometimes naked models and descriptions of sex, including an explicit interview with a porn star.
Hitachi and Sharp are discussing a partnership that would allow the Japanese companies to cut costs in their consumer electronics businesses. Under the plan, the companies would supply each other with appliances such as refrigerators and washing machines to be sold under each other's brand names, said Sharp Executive Director Hiroshi Saji.
China is injecting $24 billion in new credit into its slowing economy by cutting the amount of money banks are required to hold in reserves. The second reserve ratio cut in two years is to take effect Sunday, the state news agency Xinhua reported.
Starbucks said its earnings rose 27 percent, $32.4 million, in its fiscal fourth quarter. Most of the increase was driven by expansion. For the full year, net income rose to $101.7 million from $81.3 million, excluding merger- related costs incurred in 1998.
Venator Group, the parent of Foot Locker and Champs Sports, said it earned $7 million in the third quarter, compared with a loss of $155 million a year earlier. Last year's loss included a charge of $121 million.
Toronto-Dominion Bank said its fiscal fourth-quarter profit before one-time gains rose 59 percent, to $265 million, as the owner of TD Waterhouse Group, the world's third-largest online broker, benefited from trading revenue and increased loans.