U.S. markets up on labor and retail news
NEW YORK, June 11 (UPI) -- U.S. markets turned up after three days of flat trading Thursday after the Labor Department said initial jobless claims fell during the week.
The Labor Department said 24,000 fewer first-time claims were filed during the week ending June 6. The Commerce Department said retail sales grew 0.5 percent in May for the first time in three months, although sales remain lower compared to a year ago.
In late morning trading, the Dow Jones industrial average added 69.23 points or 0.79 percent to 8,808.25. The Standard & Poor's 500 gained 8.69 or 0.93 percent to 947.84. The Nasdaq composite index rose 16.05 or 0.87 percent to 1,869.13.
The benchmark 10-year U.S. Treasury bond rose 3/32 to yield 3.936 percent.
The euro rose to $1.408, compared to Wednesday's $1.3993. Against the Japanese yen, the dollar fell to 97.89 yen, compared to Wednesday's 98.23 yen.
In Tokyo, the Nikkei average lost 10.16 points, 0.l percent, to 9,981.33.
U.S. tackles thorny executive pay issue
WASHINGTON, June 11 (UPI) -- The U.S. Treasury has appointed Washington lawyer Kenneth Feinberg to the task of assigning executive pay levels at seven bailed out corporations.
In a move meant to answer public anger over huge salaries and bonuses at U.S. companies propped up by billions of taxpayer dollars, the Treasury authorized Feinberg, who oversaw the effort to compensate families after the Sept. 11, 2001, terrorist attacks, to set pay for the top five executives and the 20 highest paid employees at American International Group, Bank of America, and Citigroup. General Motors Corp. and Chrysler, plus their two financial firms, are also on the list, The New York Times reported Thursday.
In a statement, Treasury Secretary Timothy Geithner said high pay for executives was a "contributing factor" in the financial meltdown that began last year.
For now, the move will have no impact on most firms that received federal assistance before February, but the initiative includes two bills forwarded to Congress that seek to address compensation issues.
The first bill would give shareholders more power over company pay policies. The second would give the Securities and Exchange Commission more power in regulating the relationship between compensations committees and a company's board of directors, The Washington Post reported.
GM's corporate culture under scrutiny
WASHINGTON, June 11 (UPI) -- The U.S. government's strategy for overhauling General Motors Corp. includes a shakeup of GM's corporate culture, a top White House adviser said.
"Addressing cultural issues is just as fundamental to our assignment as addressing the balance sheet or financing," said Steven Rattner who leads the automotive task force, The New York Times reported Thursday.
With its insular corporate culture, "GM has been kicking problems down the road for a long time," said Ron Bloom, who is part of the Treasury's team to save GM.
This week GM began to rearrange its corporate board, appointing former AT&T Chief Executive Officer Edward Whitacre chairman, a move backed by Rattner.
GM is also in the process of appointing four new board members.
CEO Frederick "Fritz" Henderson has made a few changes that show willingness to allow GM to morph into a smaller, more flexible company, the newspaper said.
He told executives to stop over-preparing for congressional testimony and asked for a rundown of decisions made in lieu of a previous practice that provided him a list of decisions yet to be made, the Times reported.
With $50 billion in taxpayer money at stake, "we're not going to fail. This is too important a company," Rattner said.
Jobs at Vauxhall could cost Britain
LONDON, June 11 (UPI) -- British Business Secretary Peter Mandelson said he would "continue to fight" for jobs at the automaker Vauxhall, recently purchased by Magna International.
Vauxhall is the brand name for cars made in Britain under General Motors Corp's European operations, which are manufactured in Germany as Opel.
Canadian auto parts supplier Magna purchased 55 percent of Opel and Vauxhall late last month.
Mandelson said he would "continue to fight for the best interests of all Vauxhall's workforce in the UK," The Times of London reported Thursday.
On the agenda for discussions scheduled Thursday in Berlin was a commitment of jobs saved in exchange for a government support that could cost British taxpayers $600 million, the Times said.
