UPI NewsTrack Business

Markets slide early Monday

NEW YORK, July 6 (UPI) -- U.S. markets fell early Monday, continuing a decline that accelerated Thursday with news the unemployment rate climbed to 9.5 percent in June.

In midmorning trading, the Dow Jones industrial average lost 17.01 points or 0.21 percent to 8,263.73. The Standard & Poor's 500 lost 2.91 or 0.32 percent to 893.51. The Nasdaq composite index lost 8.07 or 0.45 percent to 1.788.45.

The benchmark 10-year U.S. Treasury bond fell 10/32 to yield 3.54 percent.

The euro fell to $1.3926, compared to Thursday's $1.3978. Against the Japanese yen, the dollar fell to 94.83 yen, compared to Thursday's 96.08 yen.

In Tokyo, the Nikkei average lost 135.20 points to 9,680.87, off 1.38 percent.

Judge approves sale of GM

NEW YORK, July 6 (UPI) -- U.S. Bankruptcy Judge Robert Gerber approved the sale of General Motors Corp. to salvage the company in the midst of a severe slump.

"Bankruptcy courts have the power to authorize sales of assets at a time when there still is value to preserve -- to prevent the death of the patient on the operating table," Gerber wrote in a 95-page opinion, The New York Times reported Monday.

Gerber said GM could proceed with the sale despite more than 850 objections to the restructuring plan filed in court. The plan had largely been ironed out before GM filed for court protection June 1. The deal includes GM selling most of its viable assets to the governments of the United States and Canada and to the United Automobile Workers union.

The company's unprofitable assets will be liquidated. Twelve of GM's 20 factories are expected to close at the cost of 21,000 jobs. GM is also expected to sever ties with about 2,300 of its 6,000 dealerships.

Officials: S. Korean economy improving

SEOUL, July 6 (UPI) -- South Korea's economy, spurred by domestic demand and exports, is fast coming out of its decline, a state-run think tank said Monday.

"Although the employment situation remains bleak, the Korean economy appears to be moving away from the declining phase as rapid contractions in domestic demand and exports are recovering relatively fast," the Korea Development Institute said in its monthly assessment, Yonhap news agency reported.

In a more cautious assessment last week, the finance ministry described the economy as still "sluggish," needing continuation of the fiscal expansion for recovery.

KDI's assessment, based on recently improving indicators, said industrial production showed "gradual improvements" with seasonally adjusted, month-to-month output expanding 1.6 percent in May, the fifth straight month of growth. Public consumption also was rising, with consumer goods sales index rising 1.7 percent, the first growth since last August.

June exports fell 11.3 percent from the same month of last year, but the decline was much less than the 28.5 percent for May.

The jobless rate in May, however, rose 0.2 percent to 3.9 percent, the report said.

Healthcare lobby in full swing

WASHINGTON, July 6 (UPI) -- U.S. pharmaceutical, medical and insurance industries have geared up to influence healthcare reform with help from Washington insiders, company records show.

More than 350 lobbyist working the corridors in Washington for various healthcare companies were either elected officials or members of a congressional office, The Washington Post reported Monday.

Lobbyists include former members of Congress, such as Richard Armey and Richard Gephardt, both of whom now work for a pharmaceutical firm from New Jersey.

Fifty of the 350 former Washington insiders now working for the industry were employees of members of the Senate Finance Committee, led by Sen. Max Baucus D-Mont., the newspaper said.

The push for influence includes a big boost in spending, with healthcare businesses now spending about $1.4 million a day on lobbying efforts, the newspaper said.

Scott Mulhauser, a spokesman for Baucus's office, said the Finance Committee "has been praised … for its uniquely inclusive and transparent healthcare reform process."

But others disagree.

"The revolving door offers a short cut to a member of Congress to the highest bidder," said Sheila Krumholz, executive director of the Center for Responsive Politics.

"It's a small cost of doing business relative to the profits they can garner."