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U.S. markets extend rally Tuesday

NEW YORK, Oct. 6 (UPI) -- U.S. markets turned higher for a second consecutive day Tuesday as a six-month buying spree showed signs of resuming.

The Reserve Bank of Australia became the first major central bank to raise lending rates Tuesday, an indication that policy makers were poised to pull back from some of the extraordinary measures used to prop up markets in the past year.

The RBA raised the cash rate to 3.25 percent, effective Oct. 7.

By close, the Dow Jones industrial average rose 1.37 percent, 131.50 points, to 9,731.25. The Standard & Poor's 500 rose 1.37 percent, 14.26 points, to 1,054.72. The Nasdaq composite index added 35.42, 1.71 percent, to 2,103.57.

On the New York Stock Exchange, 2,414 stocks advanced and 621 declined on a volume of 5 billion shares traded.

The 10-year Treasury fell 11/32 to yield 3.26 percent.

The euro rose to $1.4709 from Monday's $1.4652. Against the yen, the dollar fell to 88.82 yen from Monday's 89.53 yen.

In Japan, the Nikkei 225 index rose 0.18 percent, 17.31 points, to 9,691.80.

In Britain, the FTSE 100 index gained 2.26 percent, 113.65 points, to 5,137.98.

Shake up aside, Chrysler to split up Dodge

AUBURN HILLS, Mich., Oct. 6 (UPI) -- U.S. automaker Chrysler Group said the departure of two top executives would not derail an announcement of long-range plans expected in November.

The five-year business plan may even be released earlier to quiet distrust that may have arisen from the departures of Peter Fong and Mike Accavitti, managers of the Chrysler and Dodge brands, both of whom were said to have left the company for personal reasons, The Detroit News reported Tuesday.

Along with the news of the departing executives, Chrysler said Monday it would divide Dodge into separate car and Ram truck divisions.

Chrysler said Fred Diaz Jr. of the Denver Business Center would oversee U.S. sales and Dodge Ram trucks. Dodge cars, including minivans, crossovers and sports utility vehicles, would be handled by head designer Ralph Gilles, the company said.

Canada's CanWest media chain in bankruptcy

TORONTO, Oct. 6 (UPI) -- Canada's CanWest Global Communications Corp. filed for bankruptcy protection in Toronto Tuesday for its newspaper and television companies.

The filing cane after a board meeting late Monday to discuss the chain's $4 billion debt it has been unable to meet interest payments on throughout the year, The Globe and Mail reported.

CanWest, based in Winnipeg, Manitoba, operates 11 daily newspapers across the country, the Global Television network and three specialty cable TV outlets and has shares in 15 others.

In an internal memo, Chief Executive Officer Leonard Asper said the bankruptcy filing wouldn't cause significant losses in its 1,700-strong workforce, the report said.

CanWest's two major lenders are reportedly not interested in running a media business for the long-term, and the Globe said it was likely the newspapers and television outlets would be auctioned off.

The restructuring was expected to take between four and six months, the report said.

Renault to invest in AvtoVAZ

MOSCOW, Oct. 6 (UPI) -- Russian officials said French automaker Renault confirmed it would invest further in AvtoVAZ, maker of over 25 million Lada cars since 1970.

"Renault confirmed yesterday it was prepared to invest in the development of AvtoVAZ, including the provision of the most advanced technologies," First Deputy Prime Minister Igor Shuvalov told the RIA Novosti news service Tuesday.

"The main thing is that Renault has confirmed its strategic interest in the development of AvtoVAZ and believes that the acquisition of 25 percent plus one share was a strategically correct and justified decision," Shuvalov said.

The automaker, with a production capacity of 800,000 vehicles a year, is expected to shed 27,600 jobs to reduce its workforce to 75,000, RIA Novosti said.

Renault was prepared to provide technical expertise, data and personnel to the Russian company. "The volume of the investment will be specified following discussion of the plans for AvtoVAZ's development and corresponding valuation," Shuvalov said.