U.S. stocks open on cautious note
NEW YORK, Aug. 5 (UPI) -- Higher oil prices dogged Wall Street Thursday as New York markets opened cautiously despite gains in the labor market.
The Dow Jones industrials dropped 44.32 or 0.44 percent to 10,082.19 in late-morning activity. Nasdaq was off 10.90 or 0.59 percent to 1,844.16 and Standard & Poor dropped 5.84 or 0.53 percent to 1,092.78.
Oil prices rose again Thursday, gaining 39 cents to $43.22 a barrel.
In economic news, the Labor Department reported first-time claims for unemployment insurance fell by 11,000 in the week ended July 31 to 336,000. Economists had forecast a decline of 5,000 applications.
Asian markets, meanwhile, were generally higher. The Nikkei 225 stock average closed up 50.87 points, or 0.5 percent, at 11,060.89.
Britain raises bank rate to 4.75 percent
LONDON, Aug. 5 (UPI) -- The Bank of England Thursday nudged up the central interest rate by a quarter point to 4.75 percent, the highest level in three years.
The increase was the fifth such quarter-point jump in eight months.
The Bank's Monetary Policy Committee said "an increase of 0.25 percentage points in the base rate was necessary to keep inflation on track to meet the 2 percent target in the medium term.".
The hike is also being seen as an attempt to cool the Britain's booming real estate market, and rein in soaring consumer debt levels, the BBC said.
Kevin Hawkins, the director general of the British Retail Consortium, said the move was "potentially dangerous" at a time of weakening consumer confidence.
"Prices fell to their lowest point this year last month, but yet again retailers and consumers have to cope with another rise in rates," he told the Times of London.
Brazil lauds WTO sugar decision
BRUSSELS, Aug. 5 (UPI) -- The World Trade Organization has issued a preliminary ruling the European Union's sugar subsidies violate international trade agreements.
The ruling was hailed as a victory by Brazil, which along with Thailand and Australia had challenged the EU's subsidies, the Wall Street Journal said Thursday.
"This has been an important step in the elimination of distortions in agricultural markets," said Brazilian Foreign Minister Celso Amorim.
The EU exports about 5 million metric tons of sugar a year, making it the world's second-largest sugar exporter after Brazil.
The WTO arbitration panel's ruling wasn't made public and was distributed only to parties in the dispute.
Under WTO rules, parties to a dispute have a period during which they can question the panel's decision, but preliminary rulings are almost never overturned before they are officially made public.
EU critics say the current subsidies flood the world with government-subsidized sugar, driving down market prices and hurting the economies of poor nations that depend on the crop.
Cho: Toyota must change to stay on top
TOKYO, Aug. 5 (UPI) -- Toyota President Fujio Cho says Japan's largest automaker cannot rest on its laurels and must reinvent itself to stay at the top of the auto industry.
Cho says Toyota is a global company and no longer can rely on sending Japanese managers to run operations around the world as it challenges Ford as the world's No. 2 auto manufacturer.
Two Corolla models were 100 percent perfect in reliability tests conducted by the German magazine, Which? The Toyota compacts outscored luxury Audi and BMW models.
The magazine's annual car reliability survey rated the Mercedes E-Class second worst.
Toyota, Honda, Lexus, Mazda and Suzuki rated excellent. Daihatsu, Ford, Nissan and Subaru were good.
"Steady success is good, but it can foster serious weaknesses," Cho told the Financial Times. "The sense of crisis we feel, despite increasing sales and profits, stems from out of fear that we have not kept up."
Initial jobless claims drop by 11,000
WASHINGTON, Aug. 5 (UPI) -- Initial claims for unemployment insurance last week dropped 11,000 to the lowest level in nearly a month, the U.S. Labor Department said Thursday.
The seasonally adjusted figure stood at 336,000, the lowest point since the week ended July 3, which some observers see as further improvement in labor market conditions.
Economists say an average below 350,000 is usually a sign that jobs are growing, the Wall Street Journal said.
The 4-week average was 343,500, an increase of 6,750 from the previous week's revised average of 336,750.
The advance seasonally adjusted insured unemployment rate was 2.3 percent for the week ending July 24, unchanged from the prior week's unrevised rate of 2.3 percent.
