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Markets gain in spite of GDP

NEW YORK, Oct. 30 (UPI) -- U.S. markets posted gains Thursday in spite of the gross domestic product indicating the U.S. economy shrank in the third quarter.

The GDP fell 0.3 percent July through September, the government said. U.S. jobless claims, however, were unchanged in the week.

In Russia, the RTS gained 17.81 percent, while the MICEX stock exchange gained 19.46 percent with surges in state-run banks VTB and Sberbank. Energy giant Gazprom also surged, up 23.08 percent, Novosti reported.

By close Thursday, the Dow Jones industrial average gained 189.73 points, or 2.11 percent, to 9,180.69. The Standard & Poor's 500 rose 24.00 or 2.58 percent to 954.09. The Nasdaq composite index gained 41.31 or 2.49 percent to 1,698.52. On the New York Stock Exchange, 2,510 stocks advanced and 574 declined on a volume of 8.32 billion shares traded.

The benchmark 10-year U.S. Treasury bond fell 24/32 to yield 3.953 percent.

The dollar gained Thursday. The euro fell to $1.2924, compared to $1.2941. Against the Japanese yen, the dollar rose to 98.55 yen, up from 97.18 yen.

In Tokyo, the Nikkei average gained 817.86 points to 9,029.76, up 9.96 percent.

In London, the FTSE 100 index gained 49.11 points to 4,291.65, up 1.16 percent.

Motorola to cut 3,000 jobs

SCHAUMBURG, Ill., Oct. 30 (UPI) -- U.S. technology giant Motorola Inc. Chief Executive Officer Greg Brown said the company would layoff 3,000 workers as part of plan to save $800 million.

Most of the jobs -- about 2,000 -- would come from the company's mobile phone division, Crain's Chicago Business reported Thursday.

Motorola's mobile phone sales slid 9 percent in the third quarter, dropping the company to fourth in phone sales behind Sony Ericsson, Samsung Electronics and Nokia Oyj, Crain's reported. Just a year ago, the company was ranked second in mobile phone sales, Crain's said.

Motorola, which lost $397 million in the third quarter, also said it would postpone its planned breakup, offering no date for when the company would split into two.

The previously announced target date for spinning off the company's cellphone division from its other electronic products was October.

"While we will continue to prioritize investments on opportunities for growth, we are also improving our cost structure across the company," Co-chief Executive Officer Greg Brown said in a statement.

Perks in Detroit: A tradition with wheels

DETROIT, Oct. 30 (UPI) -- Struggling U.S. automakers are still offering managers a sizable perk, allowing them leased cars at subsidized rates, Detroit's Big Three companies said.

General Motors Corp. and Chrysler have scaled back on the benefit, but Ford Motor Co. has recently enhanced its subsidized lease program, The Detroit News reported Thursday.

GM has increased the fee for managers from $150 to $250 a month -- a fee that covers fuel, insurance, maintenance and a new vehicle every three months, the News said.

Chrysler recently said managers will have to keep their leased cars for another year to remain in the program.

But, Ford Motor Co. has added to its program, which previously allowed managers to lease one car a year, the News said.

While automakers are closing factories, laying off thousands and looking for bailout help in Washington, this traditional perk caused a traditional grudge among factory workers who feel they should be treated as equals, the News reported.

"We're taking concessions," United Auto Workers member Jim Willington said. "They should level the playing field. They ought to be willing to buy the products. They can afford it."

Faeroe Islands offers Iceland a loan

TORSHAVN, Faeroe Islands, Oct. 30 (UPI) -- The semi-autonomous Faeroe Islands -- affiliated with Denmark -- have offered Iceland a loan of $52.3 million, the Icelandic government said Thursday.

Kaj Leo Johannsen, prime minister of the small island nation with a gross domestic product of $1.44 billion, said the islands' political parties came to a unanimous agreement to furnish the loan.

"Iceland is experiencing difficult times, and for us it is important to help friends in need. Our two nations have a close relationship and we want to express our support with this contribution," Johannsen said.

Iceland's Prime Minister Geir H. Haarde said the loan was welcome. "The support from our neighbors and friends is invaluable in these challenging times," he said, accepting the contribution from the nation with one-sixth Iceland's population.