UPI NewsTrack Business

Markets set record fall on bailout failure

NEW YORK, Sept. 29 (UPI) -- Slumping U.S. markets went into a record-setting free fall Monday as the House of Representatives rejected a $700 billion plan to stabilize the economy.

Markets were already depressed with the Dow Jones industrial average down about 250 points. But after House members turned down the bailout, stocks plummeted, with the Dow falling 777.68 points in its worse ever one-day fall.

The DJIA settled at 10,365.45, off 6.98 percent at the close.

The day began with Citibank announcing it would buy North Carolina's Wachovia Corp. for $2.2 billion -- $1 per share.

The Standard and Poor's 500 also fell hard, down 8.77 percent to 1,106.58, losing 106.43 points. The Nasdaq composite index fell 9.14 percent to 1,983.73, losing 199.61 points.

On the New York Stock Exchange, 1,065 stocks rose and 2,148 declined on a volume of 5.815 billion shares traded.

The 10-year U.S. Treasury bond rose 1 30/32 to yield 3.62 percent.

The dollar was mixed Monday. The euro fell to $1.4435, compared to $1.4626 Friday. Against the Japanese yen, the dollar was at 104.06 yen, down from 106.37 yen.

In Tokyo, the Nikkei average lost 149.55 points to 11,743.61, down 1.26 percent.

The FTSE index in London lost 269.70 points to 4,818.80, off 5.3 percent.

Walgreens pays $9.9 million settlement

WASHINGTON, Sept. 29 (UPI) -- National pharmacy giant Walgreens Co. paid $9.9 million to settle claims it had over-billed four state Medicaid agencies, the U.S. Department of Justice said.

The company charged the Medicaid offices for reimbursement based on the difference between what private insurance paid for the drugs and what Medicaid "would have paid in the absence of private insurance," the Justice Department said in a statement.

Instead, the company should have charged Medicaid for the amount insured clients paid out of pocket, typically the co-pay, the Department said.

"Healthcare fraud continues to be a priority for both the District of Minnesota and the Department of Justice nationwide," said U.S. Attorney Frank Magill.

"Our office is gratified to see a substantial recovery of funds for the taxpayers, helping to ensure the continued availability of Medicare and Medicaid trust funds in the future," he said.

Strike at Boeing appears stagnant

SEATTLE, Sept. 29 (UPI) -- Boeing and the International Association of Machinists union appear far apart and unwilling to compromise to settle a strike, both sides indicate.

"There is no movement," the national aerospace coordinator for the union, Mark Blondin, told The Seattle Times.

Doug Kight, the company's labor negotiator, said the two sides have not sat down to the negotiating table since the strike began. "The differences in our positions are wide," he said.

The largest difference between the two sides concerns the issue of job security. The company needs to "react nimbly to what can be very sudden and dramatic changes in our marketplace," Kight said.

The company has 3,700 jets on back order, which union members hope will put pressure on Boeing to end the strike.

Several union member said they had plans to meet the financial demands of the strike. On top of the $150 weekly check from the union, machinist Michael Spears said he'd borrowed from his retirement funds to get through the strike. He expects to repay the loan with a strike-ending signing bonus, the Times reported.

Casinos abandon theme park look

LAS VEGAS, Sept. 29 (UPI) -- The new look of Las Vegas, which skips the kitschy themes of the past, has both admirers and detractors, observers said.

Some big themes such as Egypt and Treasure Island adventures at hotels have given way to straightforward luxury, the Las Vegas Review-Journal reported Monday. The new, stripped-down look is the latest trend replacing the old, theme-park look.

The MGM Grand has abandoned its yellow brick road. Treasure Island's famous skull and crossbones sign is now in a museum. Nefertiti's Lounge is a thing of the past, the report said.

"Things have changed and Las Vegas has a pretty good case of copycat-itis," Felix Rappaport, president of Luxor, told the newspaper.

"I think it's moving away from the themes, big time," said Anthony Marnell, the son of Tony Marnell, who designed The Mirage and Treasure Island.

But "the families love the themes," said Mark Adams, who runs vegastodayandtomorrow.com, a Web site dedicated to casino construction.

"They want to come and play in adult Disneyland, bring their kids with them. Everything is chichi and cool now, but how many modern chichi hotels can the city support?" Adams asked.