IN BRIEF
Fed: U.S. banks borrow $1.2 billion daily
The Federal Reserve said U.S. banks borrowed a daily average of $1.2 billion in the past week, swollen by the four biggest lenders who sought to display support for the Fed’s discount-rate cut.
The number, while the largest since 2001, showed banks are turning to the discount window to supplement the ample funding available to them from their own creditors. Bank of America Corp., Citigroup, Wachovia Corp. and JPMorgan Chase & Co. said Wednesday they tapped $500 million each. Other, unidentified firms accounted for the remainder.
The numbers, the first since the central bank lowered the discount rate on Aug. 17, suggest the banking system has ample liquidity to deal with clients that may be at risk.
Microsoft will replace XBox 360 controllers
Microsoft Corp., facing its second Xbox 360 headache of the summer, will replace parts of its Wireless Racing Wheel video game controllers after 50 reports that they overheated and released smoke.
The $130 steering wheel-shaped controllers mimic the physical sensations of race car driving for games such as “Forza Motorsport 2.” About 230,000 have been sold to consumers worldwide, the company said Thursday.
When the unit is plugged into an electrical outlet, its AC/DC adapter can overheat, Microsoft said, adding that it’s safe to continue using the gadgets with battery power.
NEW YORK
Oil prices rebound from sharp losses
Oil and gasoline prices rebounded Thursday from sharp losses earlier in the week, as a more stable stock market alleviated traders’ worries about an economic slump dampening demand.
The energy markets have fallen recently despite the threat of hurricanes, with many investors betting that credit might be tightening so much as to stifle growth. Also pressuring prices, the summer peak driving and air-conditioning seasons are winding down, and the winter looks like it could be a mild one.
Oil prices got a boost Thursday after the stock market appeared to have gained some stability, but crude is still down nearly 3 percent from last Friday. Gasoline has dropped 5.7 percent since then, and natural gas has tumbled nearly 20 percent.
Light, sweet crude for October delivery rose 57 cents to settle at $69.83 a barrel on the New York Mercantile Exchange.
September gasoline rose 3.42 cents to $1.9232 a gallon.
WASHINGTON
Harrah’s paid lobbyist $100,000, form shows
Harrah’s Entertainment paid U.S. Strategies Corp. $100,000 in the first half of 2007 to lobby the federal government, a disclosure form shows.
The firm lobbied Congress on issues related to Internet gambling and a bill to provide tax credits for companies who offer employees anti-smoking and wellness programs, according to the form posted online Aug. 6 by the Senate’s public records office.
Under a federal law enacted in 1995, lobbyists are required to disclose activities that could influence members of the executive and legislative branches. They must register with Congress within 45 days of being hired or engaging in lobbying.
Commercial paper declines sharply
Outstanding U.S. commercial paper fell 4.2 percent, the biggest weekly drop in at least seven years, as investors fled asset-backed debt and opted for the safety of Treasurys.
Short-term debt maturing in 270 days or less fell $90.2 billion to a seasonally adjusted $2.04 trillion in the week ended Wednesday, according to the Federal Reserve. Commercial paper outstanding has fallen by $181.3 billion in two weeks.
The retreat may suggest that the Fed’s decision to lower the discount rate last week failed to instill enough calm to draw back investors. Commercial paper backed by assets led the fall as buyers fled debt linked to subprime mortgages.
ATLANTA
Talks down to wire in Home Depot unit deal
Talks over restructuring a $10.3 billion deal to sell Home Depot’s wholesale distribution business went down to the wire Thursday, the expected closing date for the agreement.
The Atlanta-based retailer has hinted the deal could fall through. Or Home Depot may have to lower the price.
A spokeswoman wouldn’t say whether the deal will be completed. Investors were edgy, sending Home Depot shares down 75 cents, or 2.16 percent, to $34.02.
SAN FRANCISCO
Sun Microsystems will take JAVA symbol
Sun Microsystems said on Thursday it plans to change its Nasdaq stock ticker symbol to JAVA from SUNW on Monday, reflecting the heightened role of the company’s Java Web technology.
Sun Microsystems, the world’s third-largest maker of server computers used by businesses, said the change “more effectively connects it with the marketplace” as its Java platform powers and is viewed via more than 2.1 billion mobile devices and is accessible by almost all personal computers connected to the Internet.
WASHINGTON
Appeals court clears way for grocery deal
A federal appeals court on Thursday cleared the way for Whole Foods Market to buy rival organic grocer Wild Oats Markets.
The three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit denied a request by the Federal Trade Commission to delay the $565 million sale pending the outcome of an appeal. Whole Foods lawyers argued that such a ruling would have killed the deal.
U.S. District Judge Paul Friedman refused to step in last week and block the transaction, a decision that federal regulators quickly appealed.
NEW YORK
Treasury prices fall as investors embrace risk
Most Treasury bond prices were fell Thursday, investors continued their shift back to riskier investments.
At 5 p.m. EDT, the 10-year Treasury note was up $1.88 per $1,000 in face value, or 0.19 points, from its level at 5 p.m. Wednesday. Its yield, which moves in the opposite direction, fell to 4.63 percent from 4.65 percent.
The 30-year bond rose 0.5 points. Its yield fell to 4.93 percent from 4.96 percent.
