BUSINESS BRIEFS
Toyota cancels plans for Prius factory in U.S.
Associated Press
NEW YORK — Toyota Motor Corp. is shelving its plans to build the popular Prius hybrid in Mississippi as the slump in the auto industry continues to hobble the Japanese carmaker known for its emphasis on fuel-sipping vehicles.
Toyota's plant under construction in Blue Springs, Miss., was scheduled to begin production in 2010, marking the first time the gas-electric Prius, which has been on sale for more than a decade, would be built outside Japan and China.
INDUSTRIAL OUTPUT SLIPS 0.6 PERCENT
WASHINGTON — Industrial output fell slightly less than expected in November as manufacturers continued to suffer from weakness in autos and many other areas that is not expected to ease anytime soon.
The Federal Reserve reported yesterday that industrial activity dropped by 0.6 percent in November. Economists expected a decline of 0.8 percent.
The manufacturing sector is suffering like the rest of the economy from the deepening recession, which has cut consumer demand.
CRUDE PRICES FALL; COST OF GAS RISES
NEW YORK — Crude prices sank again yesterday ahead of an OPEC meeting where huge production cuts are expected, though retail gasoline prices rose over the weekend for the first time in nearly three months.
After hitting a low of $1.6559 gallon Friday, gas prices rose over the weekend to break an 86-day streak begun in July after prices topped $4.11 per gallon, according to the Oil Price Information Service.
Light, sweet crude for January on the New York Mercantile Exchange peaked briefly above $50 a barrel early yesterday, but then fell $1.77 to settle at $44.51 with more dour economic news from both Asia and the United States.
FANNIE OFFERING RENTER ASSISTANCE
NEW YORK — Fannie Mae said yesterday it's finalizing a plan to help renters stay in their homes even if their landlord enters foreclosure.
The mortgage giant said it's working on a national policy to allow renters living in foreclosed properties — and who can make their rental payments — to sign new leases with Fannie while the property is up for sale or get cash to help move into a new home.
Last month, Fannie Mae and Freddie Mac suspended foreclosure sales on occupied single-family homes and evictions from those properties through the holidays until Jan. 9. Fannie said these actions helped an estimated 7,000 to 10,000 families to remain in their homes.
HOMEBUILDERS' HOPES STILL LOW
LOS ANGELES — A key gauge of homebuilders' confidence remained at a record low this month, as builders continued to be discouraged about the prospects of a housing turnaround amid a worsening U.S. economy.
The National Association of Home Builders/Wells Fargo housing market index held at nine in December for the second month in a row.
Index readings higher than 50 indicate positive sentiment about the market. But the index has drifted below 50 since May 2006 and has been below 20 since April.
SIEMENS TO PAY $1 BILLION IN FINES
FRANKFURT, Germany — Siemens AG — rocked by a series of corruption cases that has cost the company both prestige and money — agreed yesterday to pay more than $1 billion in fines in Germany and the U.S. as it moved a step forward in closing a dark chapter in its history.
Munich-based Siemens agreed to pay more than $800 million in fines to settle long-standing corruption charges in the United States and another 395 million euros ($533.6 million) to European authorities. The announcements of the amounts of both fines came yesterday.
