Construction shot up 2.7 percent in April Construction activity surged in April by the largest amount in nearly a decade. The unexpected gains could mean the hardest-hit sector of the economy is starting to recover. Construction shot up 2.7 percent last month compared with March, the Commerce Department said. It was the biggest one-month improvement since August 2000. Housing construction jumped by 4.4 percent to a seasonally adjusted annual rate of $263 billion. Home construction has been helped by home buyer tax credits that expired at the end of April.
Canada raises its benchmark lending rate Canada became the first Group of Seven nation to raise interest rates since the global financial crisis, but said any further increases would depend on global economic conditions. The Bank of Canada increased its key interest rate by a quarter point to 0.5 percent from a record-low rate of 0.25 percent. The bank said thus far the impact of Europe's sovereign debt crisis in Canada has largely been limited to a modest fall in commodity prices. It said the decision to raise rates still leaves considerable monetary stimulus in place.
U.S. gasoline prices continue their decline Gasoline prices dropped Tuesday for the 26th straight day as lower oil prices continue to work their way to the nation's drivers. After hitting a national average of $2.929 per gallon on May 6, retail gasoline prices have fallen 20.2 cents, or nearly 7 percent, to $2.727 per gallon. Oil prices also finished lower Tuesday after testing higher levels. Benchmark crude for July delivery fell $1.39 to settle at $72.58 a barrel on the New York Mercantile Exchange.
AIG won't take lower offer for Asian unit Bailed-out U.S. insurer AIG said it won't accept a lower offer for its Asian insurance business from British insurer Prudential, which proposed a $5 billion cut to calm rebellious shareholders who thought the price was too high. London Stock Exchange-listed Prudential PLC initially agreed to pay $35.5 billion for AIA, the Asian insurance business of American International Group Inc. Faced with the growing possibility that it could not win 75 percent backing from shareholders, Prudential lowered the offer to $30.375 billion.
Alcoa has tentative deal with steelworkers Aluminum manufacturing giant Alcoa Inc. reached a tentative agreement on a new contract with its largest union, averting a possible strike that would have affected thousands of workers. Details of the four-year agreement between Alcoa and the United Steelworkers union were not immediately available. It still must be ratified by union members in 10 states over the next few weeks. The contract was extended about half a day beyond its expiration at midnight Monday, as both sides continued to discuss terms.
Citigroup to close 330 CitiFinancial branches Citigroup Inc. is closing 330 branches of its U.S. consumer finance business as part of a restructuring aimed at finding a buyer for the unit, the bank said. The branch closures at CitiFinancial will result in about 500 to 600 job cuts across 48 states, the bank said. The U.S. business of CitiFinancial will also be split into two parts, one offering personal, home equity and refinancing loans and the other handling loan modifications and restructuring, Citigroup said. CitiFinancial will be renamed after the reorganization is complete.
Hershey plans to cut as many as 600 jobs The Hershey Co. is proposing to slash as many as 600 jobs in a move to modernize and expand one of its hometown plants in Hershey, Pa., and turn the other -- the original chocolate factory built by founder Milton Hershey -- into an office building. The plan is part of a tentative agreement with union negotiators and must be approved by a majority of the approximately 1,600 members who work at both factories. A vote is set for Friday.
FROM NEWS SERVICES
