AUTOS

AUTOS

Daimler to Sell Tiny Car in U.S.

DaimlerChrysler Chairman Dieter Zetsche plans to announce today that the company's Smart car will be sold in the United States next year. Smart, a brand that has been popular in Europe, will sell its two-seat model in the United States. Its other models, a roadster and a four-seater, are being discontinued in Europe, according to its Web site. The Wall Street Journal first reported the planned launch Saturday.

ECONOMY

Consumer Confidence Rises

Consumer confidence recovered slightly in June after falling in May. The Conference Board said its confidence index rose to 105.7, up from a revised 104.7 in May. Analysts had expected a reading of 103.9. The present situation index, which measures how shoppers feel about economic conditions, declined to 132.7 from 134.1. The expectations index, reflecting consumers' outlook for the next six months, edged up to 87.6 from 85.1 last month.

REGULATORS

Morgan Stanley to Pay Fine

Morgan Stanley agreed to pay a $10 million fine to settle Securities and Exchange Commission charges that it failed to maintain safeguards to prevent the misuse of inside information. The SEC also censured Morgan Stanley under the settlement. The firm neither admitted nor denied the SEC's allegations but did agree to refrain from future violations of the securities laws. Morgan Stanley also agreed to hire an independent consultant to review its policies and practices for preventing misuse of confidential company information.

More Firms' Options Probed

VeriSign, CNET Networks, Cyberonics and Applied Micro are under investigation by federal prosecutors for stock-option grants to executives. Progress Software received a notice that the SEC was conducting an informal inquiry of its options practices. Rambus said an internal probe concluded it may have timed certain options grants, which could lead to a possible restatement of results.

At least 56 companies face federal or internal investigations over possible stock-option manipulation. As the number has grown in recent weeks, more than 70 lawsuits have been filed against the companies.

RETAIL

Top Executive Leaves Toys R Us

John Barbour, executive vice president of Toys R Us and president of the company's U.S. division, has left the company. Barbour served as division president since August 2004. Toys R Us said in the filing with the SEC that Barbour was terminated on Friday "without cause."

MERGERS & ACQUISTIONS

Duke to Sell Marketing Unit

Duke Energy said it agreed to sell its commercial marketing and trading business to financial services group Fortis for a base price of about $210 million. Fortis also will pay an amount equal to the value of the portfolio of contracts and net working capital associated with the business. That amount will be determined at closing, which is expected to occur in about 90 days. Duke Energy said it expects pretax cash proceeds of at least $350 million.