UPI NewsTrack Business

Asian markets mostly lower Friday

TOKYO, July 3 (UPI) -- Asian markets followed U.S. stock indexes lower Friday, although declines were softer than Thursday's pre-holiday losses on Wall Street.

U.S. markets fell hard Thursday following news the unemployment rate rose from 9.4 percent to 9.5 percent in June. On Friday, U.S. markets were closed in observance of Independence Day.

In Japan, the Nikkei average slid 0.6 percent, 60.08 points, to 9,816.07. Tokyo's Topix index lost 3.40 points, 0.37 percent to 920.62. The Singapore Straits Times dropped 21.07 points, 0.91 percent, to 2,299.75.

The Hang Seng index in Hong Kong bucked the trend, rising 0.14 percent, 25.35 points, to 18,203.40. In Australia, the S&P/ASX index fell 1.27 percent, 49.10 points, to 3,828.20.

In Japan, Mitsubishi Corp. shares dropped 0.5 percent. Toshiba Corp. gained 0.85 percent. Nippon Steel lost 1.1 percent.

"After yesterday's surprise jump in U.S. unemployment, with the Americans off on holiday celebrating Independence Day, we are probably facing a directionless day," said David Jones, market strategist at IG Index, The New York Times reported.

Bank fees rise, bailout notwithstanding

NEW YORK, July 3 (UPI) -- U.S. banks are increasing fees for a variety of transactions in spite of massive taxpayer bailouts, industry research groups said.

In June, Bank of America increased its monthly checking account fee from $5.95 to $8.95. Citigroup and PNC Financial now charge 3 percent for using a debit card overseas, the Charlotte, N.C., Observer reported Friday.

Researchers at Moebs Services said fees at large banks average 20 percent higher than fees at small banks. Another research group, Bankrate.com, said bank fees for automatic teller machine withdrawals rose from $1.78 per transaction in 2007 to $1.97 in 2008.

Stop-payment fees now average $30, twice what it cost 10 years ago, Moebs said.

Scott Talbott at the bank lobby group Financial Services Roundtable said the increased fees were the result of the economic downturn, which had increased risks for banks. "There is an increased riskiness around repayment," he said.

But Moebs chief economist Michael Moebs said: "We've never seen a price increase during a recession. What the bankers are saying is that 'I want to maintain my revenue.'"

Government bluffing, bondholders say

NEW YORK, July 3 (UPI) -- An attorney representing General Motors Corp. bondholders told U.S. Bankruptcy Court Judge Robert Gerber the government was bluffing with a July 10 deadline.

Representing the U.S. Treasury, Harry Wilson had told the judge that GM needed to complete a sale of its good assets by July 10 or the government would back away from its $30 billion commitment to purchase 61 percent of the company.

But attorney Michael Richman said the government had made a "conscious, strategic decision," to avoid a traditional reorganization of the company, which was an "awesome gamble," The Washington Post reported Friday.

After bailing out GM earlier this year with billions of dollars, the government's claim that it would walk away from the deal now was "not credible," Richman said.

GM's attorney Harvey Miller said the critical issue was a quick sale of GM to protect its customer base.

With a delayed bankruptcy proceeding, "essentially, the objectors are asking you to play Russian roulette," Miller said.

The judge closed the hearing on the sale of GM's assets but did not indicate when he would make a decision on the matter, the newspaper said.

Michigan on path to lose 310,700 jobs

ANN ARBOR, Mich., July 3 (UPI) -- University of Michigan economists predict the state's labor market will lose 310,700 jobs in 2009, a sharp increase over a previous prediction.

In November, predicted job losses numbered 108,000, the Detroit Free Press reported Friday.

Shaken by a prolonged slump in the automobile industry, unemployment in Michigan is already the highest in the United States at 14.1 percent.

By the end of the decade, Michigan could lose 950,000 jobs or 20 percent of its labor market, the newspaper said.

Michigan University economist George Fulton said, "a better year is anticipated for 2010, but still not a very good one."