UPI NewsTrack Business

U.S. stocks off on energy, inflation news

NEW YORK, Oct. 5 (UPI) -- U.S. stocks fell Wednesday as oil prices rose and Fed officials rekindled inflation fears.

The Dow Jones industrial average fell 17.46 points, or 0.17 percent, to 10,423.65 in late-morning trading. The Nasdaq composite slipped 14.07, or 0.66 percent, to 2,125.29, and the Standard & Poor's 500 declined 5.02, or 0.41 percent, to 1,209.45.

The price of high-quality crude oil topped $64 per barrel.

Philadelphia Fed President Anthony Santomero said the central bank will remain hawkish on interest rates to to keep "any transitory spike in energy prices" from translating into permanent inflation, the Wall Street Journal said.

The benchmark 10-year Treasury rose 9/32, or $2.81 per $1,000 invested, to yield 4.338 percent.

The dollar fell, hitting 113.92 yen from 114.21 as the euro rose to $1.1940 from $1.1923.

Tokyo's Nikkei 225 closed at 13,689.89 after sliding 48.95, or 0.36 percent, and London's FTSE 100 settle at 5,446.30 after falling 48.10, or 0.88 percent.

Indonesia raises interest rate

JAKARTA, Oct. 5 (UPI) -- Indonesia's central bank has raised a key short-term interest rate a full percentage point to 11 percent.

Bank Indonesia acted to stave inflation that is expected to result from Jakarta's decision to withdraw generous subsidies of fuel, the Financial Times reported Wednesday. Specifically, inflation is expected to reach double digits in the coming months as those fuel subsidies disappear and the retail price of fuel soars.

The government has had to lessen its subsidies because of a massive deficit that cut the value of the country's currency to a four-year low.

Besides reducing fuel subsidies and raising interest rates, the government also intends to sell about $1.25 billion in bonds on the global market to help it pay its bills.

Japanese panel says U.S. beef is safe

TOKYO, Oct. 5 (UPI) -- A Japanese study found little risk of mad cow disease being transmitted in U.S. and Canadian beef, paving the way for a beef import ban to be lifted.

A panel of experts set up by the Food Safety Commission said Tuesday there was little risk of mad cow disease infection among slaughtered cattle aged 20 months or younger if dangerous parts that could transmit the disease were removed, the Asahi Shimbun reported Wednesday.

The commission is likely to issue a formal report based on the panel's findings as early as November, paving the way for the government to resume beef imports from the two nations as early as December, officials said.

Imports of U.S. beef were banned in December 2003 and those from Canada in May that year following the discovery of cows infected with mad cow disease in both nations.

Panel members focused on whether imports of U.S. and Canadian beef from cattle slaughtered at 20 months or younger could be judged safe without testing for the disease.

Panel members reached a basic consensus that young cattle from the United States and Canada met that criteria.

Drama around world's last indie ad agency

LONDON, Oct. 5 (UPI) -- An Anglo-American syndicate is horning in on a French takeover effort of the world's last remaining independent media buying conglomerate.

Hellman & Friedman, a U.S. buyout shop, and WPP Group PLC of Britain, are talking with Aegis Group PLC, which also is being pursued by French media giant Publicis Groupe SA, the Telegraph reported Wednesday.

Aegis has acknowledged meeting with an unnamed and potential bidder, widely understood to representative the Anglo-American group.

Besides Publicis, other parties reportedly interested in Aegis are French corporate raider Vincent Bollore, the company of which he is the chairman, Omnicom Group and research companies like France's Ipsos and the U.K.'s Taylor Nelson Sofres.

Each of these parties is interested in various components and divisions of Aegis, and some -- particularly competitors, like WPP -- are understood to be simply interested in achieving bidder status to gain a look at Aegis' books, the Guardian said.

Further, what appears currently as competition among potential bidders, like the Anglo-American syndicate and Publicis, could evolve into a cooperative effort as interest in Aegis builds, analysts said.