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Oil prices jump on sanctions news
Fears of violence in the Persian Gulf escalated Thursday, pushing the price of oil higher. The Obama administration slapped Iran with more sanctions aimed at stifling its nuclear program. Traders, who worry that the sanctions will eventually lead to a military conflict in the Gulf, responded by buying oil. About 20 percent of the oil traded around the world comes from the Persian Gulf. Oil prices, which had been down all day, jumped after the sanctions were announced. Benchmark U.S. crude added 27 cents to end at $86.08 per barrel in New York. — AP
Auto plants keep jobless filings down
The number of people seeking U.S. unemployment benefits plunged last week. But a big reason is that automakers have skipped some of their usual summer shutdowns to keep up with demand, causing fewer temporary layoffs. Economists expect the number of Americans seeking unemployment aid to go back up in coming weeks. The Labor Department adjusts the number of applications for jobless aid to account for seasonal factors. But it underestimated this summer's drop in temporary shutdowns of auto plants. That distorted the seasonally adjusted data it released Thursday. And that may largely explain why applications for unemployment aid tumbled 26,000 last week to a seasonally adjusted 350,000 — the fewest since March 2008. Applications for unemployment benefits measure the pace of layoffs. When they consistently fall below 375,000, it generally suggests that hiring is strong enough to reduce the unemployment rate. The number has fluctuated around that level since April. — AP
Fixed-rates mortgages at new lows
Average U.S. rates on fixed mortgages fell again to record lows, giving would-be buyers more incentive to brave the housing market. Mortgage buyer Freddie Mac said the average rate on the 30-year loan fell to 3.56 percent. That's down from 3.62 percent last week and the lowest since long-term mortgages began in the 1950s. The average rate on the 15-year mortgage, a popular refinancing option, dipped to 2.86 percent, below last week's previous record of 2.89 percent. — AP
Yahoo reports security breach
Yahoo Inc. said a security breach on its site exposed 450,000 user names and passwords for accounts at Yahoo and other services such as Microsoft Corp.'s Hotmail and AOL Inc. A file containing login credentials for Yahoo and other accounts was stolen from a Yahoo site featuring user articles, videos and slide shows on Wednesday, Yahoo said in a statement. "We are taking immediate action by fixing the vulnerability that led to the disclosure of this data, changing the passwords of the affected Yahoo! users and notifying the companies whose users accounts may have been compromised." A Yahoo spokeswoman the company has 298 million active Yahoo e-mail users worldwide, so the breach affected less than 1 percent of users. — Bloomberg News
Regulators seek ex-CEO testimony
North Carolina utilities regulators investigating whether they were misled before the merger creating the country's largest electric company have called the sacked CEO of Duke Energy Corp. to testify. The North Carolina Utilities Commission ordered two more days of hearings. Former Progress Energy CEO Bill Johnson was called to testify next Thursday. The two companies said 18 months ago that Johnson would head Charlotte-based Duke Energy after it took over Raleigh-based Progress. But hours after the deal was done, Johnson was out and former Duke Energy CEO Jim Rogers was back in the top job. Rogers testified under oath this week that directors told him they were disappointed in Johnson's authoritarian-seeming style, problems with Progress Energy's closed Crystal River nuclear plant in Florida, and Progress' financial performance. — AP
United orders 150 737s
United Airlines ordered 150 Boeing 737s, a big win for the jet-maker and a clear sign that the world's largest airline is shifting toward Boeing planes. United ordered 50 of Boeing's 737-900ERs, which begin arriving late next year. It's also buying 100 new 737 Max 9s, a revamped 737 that is getting new engines and other tweaks to make it more fuel-efficient. They start arriving at United in 2018. The order doesn't necessarily mean United is getting bigger. The 737-900ERs will replace older 757-200s, which Boeing no longer makes. It said the new planes are 15 percent more fuel-efficient per seat than the ones they will replace. The order would be worth more than $14 billion at list prices, although big airlines such as United don't pay list prices. — AP
Euro bailout fund passes Italian Senate
The European Stability Mechanism was approved by the Italian Senate, bringing the euro-region's planned $610 billion permanent bailout fund a step closer to ratification for the 17-nation currency union. The ESM, which was due to take effect on July 9, still must overcome a legal challenge in Germany and gain the approval of Italy's lower house. European leaders are urging implementation of the ESM as they prepare a $122 billion Spanish bank rescue and brace for the possibility of bailout requests from countries such as Italy. The ESM will be used to inject liquidity into distressed banks and buy sovereign debt of nations struggling to contain borrowing costs. The fund has been passed by nine euro-area countries including France, Spain and Greece, according to the European Union website. Final ratification requires approval from nations representing 90 percent of the voting weight of the common currency region. Italy has nearly 18 percent of that measure, while Germany is the biggest euro member. — Bloomberg News
Japanese firm to buy U.K. ad agency
Dentsu Inc. of Japan said it would buy British advertising agency Aegis Group P.L.C. for about $5 billion to form one of the biggest advertising companies in the world. Dentsu said Aegis, a leading ad agency in Europe and the United States, has a growing position in emerging markets and has recently gained strength in Asian countries outside of Japan. 84 percent of Dentsu's revenue is generated in Japan. Combined, Dentsu said, the companies do business with around 71 of the top 100 marketers. Aegis is based in London. The company's board of directors is recommending that shareholders approve the sale. Dentsu says Aegis had net income of about $105 million and about $15.35 billion in consolidated revenue in 2011. — AP
Mutual fund assets increase
Total U.S. money market mutual fund assets rose $18.56 billion to $2.551 trillion for the week that ended Wednesday, the Investment Company Institute said. Assets of the nation's retail money market mutual funds fell $1.56 billion to $886.34 billion, the mutual fund trade group said. Assets of taxable money market funds in the retail category fell $2.39 billion to $698.15 billion. Tax-exempt retail fund assets rose $830 million to $188.19 billion. — AP
