UPI NewsTrack Business

Markets up despite jobless rise

Markets on Wall Street rose for the third consecutive day Friday despite a slight upswing in the U.S. unemployment rate.

The Department of Labor said the unemployment rate in August rose to 9.6 percent from 9.5 percent. But the uptick was widely expected -- it was expected, in fact, a month ago -- meaning many investors adjusted their positions in advance of the announcement.

In late morning trading, the Dow Jones industrial average gained 63.43 points, 0.61 percent, to 10,383.50. The Standard & Poor's 500 index added 0.73 percent, 7.98, to 1,098.03. The Nasdaq composite index gained 0.87 percent, 19.21, to 2,219.22.

The benchmark 10-year Treasury note lost 21/32 to yield 2.702 percent.

The euro rose to $1.2867 from Thursday's $1.2822. Against the yen, the dollar rose to 84.35 yen from Thursday's 84.23 yen.

In Tokyo, the Nikkei 225 index rose 0.57 percent, 51.29, to 9,114.13.

Afghanistan says it will back Kabul Bank

KABUL, Afghanistan, Sept. 3 (UPI) -- Afghan President Hamid Karzai said the government would guarantee deposits at stumbling Kabul Bank, which was rocked by a sudden government takeover.

Some fear an apparent depositor run on Kabul Bank could spread through Afghanistan's banking system.

"Even if the whole financial system in Afghanistan collapses, we have enough money to support it," Karzai said.

Karzai blamed the run on the bank on the Western press, which he said "has been covering it (the bank's troubles) in a negative and provocative way."

The Afghan Central Bank took over management of Kabul Bank this week, replacing its well-connected chief executive officer and chairman, The New York Times reported Friday.

White House spokesman Tommy Vietor said the U.S. government was supporting "the Afghan Central Bank's effort to uphold international standards."

Khalilullah Frozi, one of Kabul Bank's largest shareholders, said the bank had not lost as much as the $300 million it reportedly lost.

The government this week has already given the bank $100 million to cover the payroll for 250,000 public workers.

A bank collapse could threaten the country's security infrastructure because Kabul Bank manages military and police payrolls.

Unemployment rises to 9.6 percent

WASHINGTON, Sept. 3 (UPI) -- The U.S. economy shed 54,000 jobs in August as the employment recovery eroded for the second consecutive month, the Bureau of Labor Statistics said Friday.

The unemployment rate rose to 9.6 percent from 9.5 percent a month earlier.

The economy lost 131,000 jobs a month ago, but the unemployment rate remained intact at that time.

The Labor Department report looks to paint the labor market as stagnant, rather than crumbling.

"The unemployment rate was about unchanged," the report says. Later, it says the rate was "little changed."

There were ups and downs among various industries. Healthcare added 28,000 jobs and mining added 8,000. Manufacturing lost 27,000 and temporary jobs in professional services rose by 17,000. In construction, 19,000 jobs were added, but 10,000 of those involved workers returning from a July strike, the Labor Department said.

In retail, the addition of 8,000 jobs in the automotive industry was "essentially offset" by the loss of 6,000 jobs in building materials and garden supply stores, a seasonal swing.

Burger King accepts a $4B offer -- for now

MIAMI, Sept. 3 (UPI) -- A private equity firm and Burger King said they agreed to a $4 billion leveraged buyout of the U.S. food chain, but it has time to seek better offers.

Under terms of the deal, the private equity, 3G Capital, must initiate its tender offer by Sept. 17. Burger King has until Oct. 12 to seek better deals, The New York Times reported Friday.

3G has agreed to pay $24 per share for the company, a 46 percent premium on the food giant's share prices until recently, when rumors of a sale triggered a sudden upswing in share prices.

The equity firm said it planned to expand Burger King in foreign markets, particularly Asia and Latin America, the Times said.

Burger King Chairman and Chief Executive John Chidsey would stay on as co-chairman, working alongside Alexandre Behring, 3G's managing partner, who would also take a co-chairman role.

The firm would look for a new CEO.

Behring said Burger King was "a perfect fit" for 3G.