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U.S. markets head lower Tuesday

NEW YORK, Oct. 13 (UPI) -- U.S. markets remained quiet Tuesday after a run up put the Dow Jones industrial average briefly at the high point for the year in the previous session.

The Dow Jones industrial average rose within 70 points of the 10,000 point mark Monday, before numbers deflated in the afternoon. Tuesday morning, U.S. markets retreated further.

The DJIA gave up 0.6 percent, 59.56 points, to 9,826.24. The Standard & Poor's 500 lost 0.75 percent, 8.07 points, to 1,068.12. The Nasdaq composite index fell 0.32 percent, 6.78 points, to 2,132.36.

The benchmark 10-year Treasury rose 19/32 to yield 3.323 percent.

The euro rose to $1.4816 from Monday's $1.4781. Against the yen, the dollar fell to 89.63 yen from Monday's 89.86 yen.

In Japan, the Nikkei 225 index gained 0.6 percent, 60.17 points, to 10,076.56.

Inflation at five-year low in Britain

LONDON, Oct. 13 (UPI) -- The Office for National Statistics said inflation in Britain fell to a five-year low in September, dropping below expectations to 1.1 percent.

The consumer price index hit the lowest rate since September 2004, dropping below the August rate of 1.6 percent, The Times of London reported Tuesday.

Core inflation, which excludes energy and food costs, came in at 1.7 percent, as energy costs plunged 7.3 percent and food costs slipped 0.9 percent.

IHS Global Insight chief economist Howard Archer predicted September's inflation rate would "probably prove the floor in annual consumer price inflation as oil prices fell back very sharply in the final months of 2008 and early 2009."

"Consequently, annual consumer price inflation is likely to rise back above the Bank of England's 2 percent around the turn of the year and it could near 2.5 percent during the first half of 2010," he said.

UAW to leverage success with Ford

DEARBORN, Mich., Oct. 13 (UPI) -- United Auto Worker members said a drive for contract concessions by Ford Motor Co. is less likely as the U.S. automaker gains market share.

Ford gained one full point of market share in the United States and rose to 10.1 percent of the market share in Europe in the past year, the Detroit Free Press reported Tuesday.

Union leaders are gathering in Detroit Tuesday to discuss Ford's proposals, which aim to put Ford's labor contract more in line with General Motors Co. and Chrysler Group, both of which found union members willing to sign new deals when they were headed toward bankruptcies this summer.

Ford, in contrast, made a profit of $834 million in the first half of the year. Consequently, Ford's workers told the Free Press they would agree to new terms only in return for a promise of more jobs or more work.

"If there is product tied to it, that may be a different story," said Bill Johnson, chairman of the Wayne Assembly Plant for the UAW Local 900.

Gen. Dynamics buoyed by defense contracts

LONDON, Ontario, Oct. 13 (UPI) -- General Dynamics Land Systems Canada said it has pending defense contracts with the Canadian and U.S. governments worth $1.6 billion for armored vehicles.

The company, based in London, Ontario, said a deal was struck with the United States to provide 352 Stryker light armored vehicles for the army, although it is pending congressional approval, the London Free Press reported Tuesday.

The U.S. contract is worth $647 million and comes as the company said it had secured a $1 billion deal to manufacture similar vehicles for Canada's defense department, the report said.

Pete Keating, vice-president, communications, for GDLS in Sterling Heights, Mich., told the newspaper the new middle-weight Strykers are lighter than tanks yet heavier than traditional light-armored-vehicles and are intended to replace ones lost in combat in Afghanistan and Iraq, as well as for domestic training.

"We will know by February and maybe sooner as the forces are going through a defense review," Keating said of the U.S. contract.