Blue chips nearly set a record, bonds fall
NEW YORK, Sept. 27 (UPI) -- U.S. blue chip stocks rose Wednesday to within two points of their record but then fell back as oil prices surged.
The Dow Jones industrial average was up 22.49 or 0.19 percent to 11,691.88 on a volume of 1.4 billion. The index's record is 11,722.98 set in January 2000.
The Nasdaq composite rose 1.98 or 0.09 percent to 2,263.32, and the Standard & Poor's 500 gained 0.49 or 0.04 percent to 1,336.83.
Crude oil closed sharply higher at $62.96 per barrel.
The benchmark 10-year Treasury note fell 2/32, lifting its yield to 4.596 percent. The 10-year note yields, which move in the opposite direction from the price, have plunged from 4.81 percent a week ago to a seven-month low of 4.54 percent on Monday.
The euro rose to $1.2711 from $1.2690 while the dollar was unchanged at 117.43 yen.
Tokyo's Nikkei 225 closed at 15,947.87 on a gain of 390.42 or 2.51 percent and London's FTSE 100 settled higher by 42.60 or 0.73 percent at 5,916.20.
E.On keeps pressing for Endesa deal
MADRID, Sept. 27 (UPI) -- Germany's E.On AG hiked its bid for Spanish utility Endesa by 38 percent to $47 billion in a fresh effort to win Endesa from a Spanish construction firm.
That construction firm, Acciona SA, said it spent $4.3 billion for a 10-percent interest in Endesa, MarketWatch reported Wednesday.
"Against the background of the recent developments with regard to Endesa, E.On reinforces its commitment to a successful transaction," the German company said.
Observers suggested that Acciona's offer stemmed from pressure by the Spanish government to block a foreign takeover of the utility. Earlier, Madrid had tried to block E.On outright and, more recently, it has imposed several conditions on a deal. The European Commission, however, ruled Tuesday that those conditions are illegal.
Profit-hungry Peugeot goes on a diet
PARIS, Sept. 27 (UPI) -- PSA Peugeot Citroen SA, Europe's second-largest carmaker, aims to cut its payroll by 10,000 as the French company implements broad-ranging cost cuts.
Besides reducing employment by about 6 percent, Peugeot plans to slash capital expenditure by $634 million, cancel a second production unit at its Trnava site in Slovakia and chop research and development costs by 15 percent.
The moves are necessitated by falling European sales.
Peugeot will achieve the payroll cuts by not replacing retiring Spanish and French workers, the two locations where its labor costs are the highest.
The company employs a total of 130,000 people in Europe and 208,000 worldwide, the Independent reported Wednesday.
Aer Lingus IPO values airline at $1.4B
DUBLIN, Ireland, Sept. 27 (UPI) -- The initial public offering of Irish airline Aer Lingus is pricing the carrier at $1.4 billion, the Telegraph reported Wednesday.
Company officials say there has been a strong level of interest, from both domestic investors and from overseas.
The Irish Government plans to keep a 34.8-percent stake in Aer Lingus after the London Stock Exchange IPO, the first airline IPO since easyJet six years ago.
