INO.com News - AP Financial NewsBrief at 6:47 a.m. EDT (apnews)

AP Financial NewsBrief at 6:47 a.m. EDT

World stock gains limited by weak European data

LONDON (AP) _ World markets were mostly higher Friday, although gains in Europe were limited by more dismal economic data showing the euro zone's economy shrank by a massive 2.5 percent in the first quarter. Although investors are showing a resilient appetite for global stocks on hopes for an economic recovery later this year, the European growth data dampened optimism and kept the region's indexes from rising as much as Asian markets.

Oil slips to near $58 as weak economy slows rally

Oil prices slipped to near $58 a barrel Friday as signs of economic weakness in the U.S. and Europe led investors to consider whether this month's crude rally was justified. Benchmark crude for June delivery was down 53 cents to $58.09 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. On Thursday, the contract climbed 60 cents to settle at $58.62.

Insurers get preliminary OK for Treasury funds

LOS ANGELES (AP) _ The Treasury Department has agreed to extend billions in bailout funds to six major life insurers, following a months-long quest by some in the sector for government help in shoring up capital positions in the wake of major investment losses. The Hartford Financial Services Group Inc. was the first to disclose Thursday that it had been notified by the Treasury Department that it was eligible for $3.4 billion from the Troubled Asset Relief Program, or TARP. Lincoln National Corp., which commonly goes by the name Lincoln Financial Group, said it has been initially approved for a $2.5 billion injection from TARP's Capital Purchase Program.

Euro zone contracted by massive 2.5 pct in Q1

LONDON (AP) _ The economy of the 16 countries that use the euro shrank by a massive 2.5 percent in the first quarter as the recession tightened its grip all across the continent. Key export engine Germany saw output swoon. The euro zone has now seen output decline for four consecutive quarters. After modest 0.2 percent decreases in the second and third quarters of 2008, gross domestic product declined by 1.6 percent in the fourth quarter.

Panasonic slumps to $4 billion annual loss

TOKYO (AP) _ Panasonic Corp. swung deep into the red last fiscal year, joining the expanding club of big Japanese brands shellshocked by their rapid descent from cash cow to money loser. The world's biggest plasma TV maker Friday reported a 378.96 billion yen ($4 billion) loss for the fiscal year ended March _ its first loss in seven years _ and expects to stay in the red in the current year.

Microsoft, China's Hangzhou set 'model city' pact

SHANGHAI (AP) _ Microsoft Corp. announced a partnership aimed at helping make the eastern Chinese city of Hangzhou a model for innovation and protection of intellectual property, in the company's latest attempt to combat rampant software piracy. A three-year agreement signed Friday calls for setting up two new centers in Hangzhou to focus on developing the local technology industry. Microsoft will provide curriculum support, technology and training for teachers at Hangzhou Normal University through an institute set up to nurture local innovation.

Chrysler targets 800 dealers in reorganization

DETROIT (AP) _ In tiny Millerstown, Pa., the owner of the only car dealership in town found out Thursday he was on Chrysler's hit list _ one of 789 across the nation that the troubled automaker wants to eliminate. "It's really, really a blow," Jeff Potter, whose family owns the dealership, said after hearing the news from a customer who spotted the closing list on the Internet. "When you talk about being here 34 years, it's my life."

Obama's barbed words worry corporate world

WASHINGTON (AP) _ Relations between President Barack Obama and U.S. corporate leaders have grown tense in recent weeks, with business groups bristling over his sharp rebukes of lenders and multinational companies in particular. Executives and trade groups that praised Obama's outreach during his post-election transition period say they have felt less welcome since he took office in January. More troubling, they say, are his populist-tinged, sometimes acid critiques of certain sectors, including large companies that keep some profits overseas to reduce their U.S. tax burden.

Foreign investment in China down 22.5 pct in April

SHANGHAI (AP) _ China's foreign direct investment fell in April for a seventh month as companies cut back amid the global financial crisis, the Commerce Ministry said Friday. The ministry reported that foreign direct investment in China totaled $5.89 billion in April, down 22.5 percent from a year earlier. That compared with a 9.5 percent decline in March.

Japan machinery orders drop 1.3 percent in March

TOKYO (AP) _ Japanese machinery orders turned lower again in March, suggesting that companies remain wary of spending even amid emerging signs that the world's second-largest economy has bottomed. Core private sector machinery orders fell 1.3 percent in March from the previous month to 727.9 billion yen (US$7.6 billion), the government said Friday. The closely watched figure, which excludes those from electric power companies and shipbuilders due to their volatility, is a key indicator of companies' outlook for capital expenditures.

Mitsubishi UFJ scraps purchase of Citigroup unit

TOKYO (AP) _ Japan's biggest bank says it has scrapped plans to buy Citigroup Inc.'s Japan trust banking unit. In December, a unit of Mitsubishi UFJ Financial Group Inc., known as MUFG, agreed to buy NikkoCiti Trust and Banking Corp. in an all-cash deal valued at 25 billion yen ($261.2 million).

German economy shrank 3.8 pct in 1st quarter

BERLIN (AP) _ Germany's economy shrank by 3.8 percent in the first quarter, the sharpest decline since record-keeping began in 1970, as demand for the country's exports dried up amid the global economic crisis, government data showed Friday. The steep drop in January-March over the previous three months was the fourth consecutive quarterly contraction to gross domestic product.

Rio Tinto says still committed to Chinalco deal

SYDNEY (AP) _ Debt-laden miner Rio Tinto Ltd. said Friday it remains committed to a $19.5 billion deal with China's Chinalco, pouring cold water on market speculation it might be backing away from the tie-up. The comments came in response to a request from the Australian Securities Exchange to try to explain a plunge in the company's share price this week as rumors swirled that the Chinalco deal might be off.

GM says it could sell assets to new co.

DETROIT (AP) _ General Motors Corp. says it likely would sell most of its assets to a new company and liquidate the rest if it has to seek bankruptcy protection. The company made the disclosure Thursday in a filing with the Securities and Exchange Commission. It has said bankruptcy is possible if it doesn't get enough takers on an offer to swap $27 billion in bond debt for stock.

Free Lipitor, Viagra, 70 other drugs for jobless

The recession might be a little less painful for some Americans, who won't lose their prescription medications if they lose their jobs. Pfizer Inc. said Thursday it will give away more than 70 of its most widely prescribed drugs, including Lipitor and Viagra, for up to a year to people who have lost jobs since Jan. 1 and have been taking the drug for three months or more. The announcement comes as the unemployment rate topped 8.9 percent in April.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.