Markets mixed Friday morning
NEW YORK, Sept. 25 (UPI) -- U.S. markets were mixed Friday morning as Group of 20 world leaders met for the second day of an economic summit in Pittsburgh.
President Barack Obama is scheduled to announce the G20 nations had superseded the longer-standing Group of 8 on economic issues. But Peter Morici, a former chief economist with the U.S. International Trade Commission said the announcement is not Earth shattering. It "merely recognizes reality," he said.
In late morning trading, the Dow Jones industrial gained 20.03 points, 0.21 percent, to 9,727.38. The Standard & Poor's 500 added 1.34 points, 0.13 percent, to 1,052.12. The Nasdaq composite index lost 0.18 percent, 3.76 points, to 2,103.85.
The benchmark 10-year Treasury rose 1/32 to yield 3.376 percent.
The euro rose to $1.4717 from Thursday's $1.4656. Against the yen, the dollar fell to 90.06 yen from Thursday's 91.22 yen.
In Japan, the Nikkei 225 index lost 278.24 points, 2.64 percent, to 10,265.98.
Accused Perot employee has heroic past
NEW YORK, Sept. 25 (UPI) -- The Texas resident accused of an $8.6 million insider trading fraud was a hero three decades ago in the rescue of U.S. hostages in Iran, witnesses say.
Reza Saleh, an employee of several companies belonging to former independent presidential candidate H. Ross Perot, has been accused of buying $477,000 worth of stock options in advance of the $3.9 billion agreement for Dell Inc. to buy Perot Systems Corp and selling them when the deal was announced Monday for an $8.6 million profit, The Wall Street Journal reported Friday.
In 1979, Perot orchestrated the rescue of two Electric Data Systems executives who were being held hostage in Iran.
In the effort, "unsolicited and with no promise of reward, this guy put his life on the line and didn't flinch," said Ralph Boulware, who took part in the rescue effort.
Saleh, an Iranian who worked at Electric Data Systems, helped break the hostages out of a prison where they were held and guide them to safety in Turkey.
The incident is described by Ken Follett in the book "On Wings of Eagles."
A spokesman for the Perot family said, "Reza as been a close friend ... it saddens (the family) deeply to learn of these allegations."
Spain's unemployment could hit 25 percent
MADRID, Sept. 25 (UPI) -- Researchers in Madrid said unemployment would likely peak at 25 percent in Spain in the next three years with the building industry's losses escalating.
RR de Acuna & Asociados said losses in the real estate and housing industry could contribute to an 11 percent drop in Spain's gross domestic product, The Daily Telegraph reported Friday.
The current annual demand for properties is 218,000, but there are 1,623,000 properties on the market, which could take as six to seven years to sell. By contrast, the slump of home sales in the U.S., although easing lately, has 8.5 months of unsold homes on the market at the current rate of sales, the National Association of Realtors said Thursday.
Roberto Ruiz, strategist for UBS bank, said wages in Spain must drop 10 percent to become competitive again. The critical construction sector is likely to fall from 18 percent to 5 percent of the gross domestic product, he said.
Sara Lee personal care unit sold
LONDON, Sept. 25 (UPI) -- Multinational health and hygiene conglomerate Unilever said it would purchase U.S. Sara Lee Corp.'s personal care division for $1.9 billion in cash.
Unilever, a joint British and Dutch corporation -- maker of Dove soap and Axe deodorant -- said the purchase was subject to regulatory approval. The division it is acquiring earns $1.1 billion in annual sales, Unilever said.
Unilever Chief Executive Officer Paul Polman said the deal "builds on our portfolio in Western Europe and also in Asia."
"The Sara Lee brands enjoy strong consumer recognition, offer significant growth potential and are an excellent fit with Unilever's existing business," he said.
Sara Lee Chief Executive Brenda Barnes said Friday that the company has "received significant interest in the remainder of its household business," CNNMoney.com reported.
Sara Lee was interested in further divestment, CNNMoney.com said.
