Fires prompting recall of 2013 Ford Escape
DETROIT, July 20 (UPI) -- Ford Motor Co. has announced the second recall in a week for the 2013 Escape for a faulty fuel line that could cause the vehicle to catch fire.
The recall applies only to Escapes equipped with the 1.6-liter engine, in which there have been three reports of the fuel line splitting and leaking gasoline, causing a fire, The Detroit News reported Friday.
Two of the incidents occurred at a Ford facility in Louisville, Ky., and a third was experienced by a Canadian customer, the Los Angeles Times reported.
"Our intensive investigation and testing has identified the area of concern, and we are moving as quickly as possible to repair vehicles for our customers," Ray Nevi, assistant director of Ford's Automotive Safety Office, said in a statement. "In the meantime, it is extremely important that affected customers not ignore this recall and immediately contact their dealer."
The Thursday recall of 11,500 Escapes came days after a recall to repair a carpet issue on more than 10,000 2013 Escapes, the Times reported. The incorrect carpet padding in the center console trim panel could cause the driver to hit the side of the brake pedal in moving a foot from the accelerator, increasing stopping distances, the National Highway Traffic Safety Administration said.
Stocks slide Friday
NEW YORK, July 20 (UPI) -- U.S. stocks closed lower Friday on Wall Street as economic data caught up with optimism provided by corporate reports.
A recent report on existing home sales, which fell in June, and a negative outlook voiced by Federal Reserve Chairman Ben Bernanke in recent testimony contributed to Friday's slip.
In late-afternoon trading on Wall Street, the Dow Jones industrial average lost 120.79 points or 0.93 percent to 12,822.57. The Standard & Poor's 500 index lost 13.85 points or 1.01 percent to 1,362.66. Tech-heavy Nasdaq composite index gave up 40.60 points or 1.37 percent to 2,925.30.
On the New York Stock Exchange 1,024 issues advanced and 2,011 declined on volume of 3.15 billion shares.
The benchmark 10-year treasury note yielded 1.46 percent.
The euro fell to $1.216 from Thursday's $1.228. Against the yen, the dollar fell to 78.49 yen from 78.59 yen.
In Tokyo, the Nikkei 225 index lost 1.43 percent, 125.68, to 8,669.87.
In London, the FTSE 100 index slid 1.09 percent, 62.42, to 5,651.77.
Viacom, DirecTV reach seven-year deal
NEW YORK, July 20 (UPI) -- Viacom Inc. and DirecTV Group Inc. said they had reached a seven-year deal that restores Comedy Central, Nickelodeon and other channels for U.S. viewers.
The two companies had taken their pricing disagreements public with DirecTV saying Viacom was demanding a 30 percent increase in fees, which would have showed up in service bills for their customers.
While Viacom blacked out popular channels for the past nine days, DirecTV used its delivery system to explain its position to customers over the airwaves.
The Wall Street Journal reported Friday terms of the seven-year deal were not disclosed.
Negotiators had discussions through Thursday night and reached an agreement Friday morning.
"Viacom is extremely pleased to bring its programming back to DirecTV subscribers, and thanks everyone affected by the disruption for their patience and understanding during this challenging period," the company said in a statement.
DirecTV continued to assert its position on the channel blackouts that caused customers of both companies to defect to other options.
"The attention surrounding this unnecessary and ill-advised blackout by Viacom has accomplished one key thing: it serves notice to all media companies that bullying TV providers and their customers with blackouts won't get them a better deal." said Derek Chang, executive vice president of content strategy and development for DirecTV.
Finance markets pessimistic about Spain
MADRID, July 20 (UPI) -- Eurozone finance ministers agreed Friday to provide up to $122.6 billion to shore up the Spanish banking system, officials said.
But interest rates on Spanish debt continued to rise, suggesting financial markets are pessimistic about the country's future, the Financial Times reported. The 17 ministers took the vote by conference call.
The aid package includes an immediate loan of 30 billion euros ($37 billion), The New York Times said.
There were signs of additional stress in Spain. Valencia requested help from a $22 billion fund set up by the Spanish government to aid regional economies, and there were protests in 80 cities against austerity measures.
The rate on the 10-year sovereign bond rose to more than 7 percent Thursday and remained there Friday, the Times said. Experts said that might leave the Spanish government unable to borrow.
The International Monetary Fund called on Spain's government to slow its deficit-cutting drive, saying the Spanish economy can't absorb so many cutbacks. IMF Managing Director Christine Lagarde said reductions should focus on reducing services for people with higher incomes and on sanctioning autonomous regional governments if they fail to hit their budget targets and incur huge debt, ThinkSpain reported.
The bailout memorandum of understanding follows Germany's approval Thursday of the arrangement, which includes 3 percent interest for 15 years and a 10-year grace period.
Lagarde said a slower-paced, deficit-reduction effort would help prevent the country's economy from collapsing.
Spain must improve crisis- and resolution-management in its banking sector and create an integrated communications strategy to include banks, results of independent evaluations indicated.
The evaluations also supported controversial labor reforms approved by lawmakers that relax restrictions on employers concerning paying and firing workers.
