Page 47 - MIN ON 8 DEC 2015

A24
BUSINESSTuesday 8 December 2015
Oil hits lowest price since 2009, sinking energy stocks STREET BRIEFS
BERNARD CONDON
AP Business Writer
NEW YORK (AP) — A sharp
drop in the price of oil on
Monday rattled investors
and helped push stocks
lower across several indus-
tries.
Investors sold from the
start of trading follow-
ing a decision by OPEC
last week not to cut pro-
duction. Benchmark U.S.
crude dropped nearly 6
percent, deepening its
stunning 1½ year plunge,
to close at its lowest level
in nearly seven years. The
losses were broad, with
seven of the 10 industry
sectors in the Standard &
Poor’s 500 index closing
lower.
As they have all year, oil
drillers bore the brunt of
the selling. Chevron and
Exxon Mobil, both mem-
bers of the 30-stock Dow
Jones industrial average,
each fell nearly 3 percent.
“There was a big hope
that OPEC would an-
nounce a production cut,
but it just didn’t happen,”
said Mizuho Securities
Chief Economist Steven
Ricchiuto. He added: “The
whole world is facing ex-
cess supply as the global
economy slows.”
The Dow gave up 117.12
points, or 0.7 percent, to
17,730.51. The S&P 500 fell
14.62 points, or 0.7 per-
cent, to 2,077.07. The Nas-
daq composite dropped
40.46 points, or 0.8 per-
cent, to 5,101.81.
Airlines stocks were among
the winners as investors
anticipated bigger profits
China’s Citic Securities says can’t reach 2 senior execs and other cuts of meat
KELVIN CHAN
AP Business Writer
HONG KONG (AP) — One
of China’s biggest securi-
ties companies said it can’t
contact its top two invest-
ment bankers after media
reports said the pair might
be under investigation.
Citic Securities Co. said in a into the company follow-
statement Sunday evening
that it hasn’t been able to
get in touch with Chen Jun
and Yan Jianlin.
Financial news magazine
Caixin reported Friday on
its website that the two
were taken away by au-
thanks to falling fuel costs. stock market more vulner- cent in recent weeks. Germany’s Linde
JetBlue Airways jumped able to price swings in the — Keurig Green Mountain buying American
$1.01, or 4 percent, to commodity. soared 72 percent after HomePatient Inc
$26.49. Delta Air Lines also In each of the past three agreeing to be acquired
rose 4 percent, gaining $2 quarters, as oil prices have by a private equity firm. BERLIN (AP) — German
to close at $51.78. tanked, earnings per share The stock jumped $37.19 technology group Linde
AG says it is buying U.S.
Traders work at the post of specialist Meric Greenbaum, center, on the floor of the New York home care company
American HomePatient,
Stock Exchange. A sharp drop in the price of oil on Monday rattled investors and helped push Inc. for an undisclosed
sum. Linde, which is active
stocks lower across several industries. (AP Photo/Richard Drew) in gases and engineer-
ing, said Monday that the
In theory, lower oil prices for energy companies in to $88.89. acquisition from Highland
should help many stocks the S&P 500 have dropped — Office Depot plunged Capital Management LP
because consumers often more than 50 percent, ac- nearly 16 percent after is expected to close in the
spend money elsewhere cording to S&P Capital IQ, regulators said they would first quarter. The compa-
that they save at the a financial data provider. try to block a proposed ny will be integrated into
pump or on heating bills. After Monday’s drop, their purchase of the com- Linde’s U.S. subsidiary, Lin-
But investors have been stocks are down 22 per- pany by rival Staples for care. American HomePa-
disappointed. cent since the start of the $6.3 billion. Office Depot tient, based in Brentwood,
“Retailers have been wait- year. dropped $1.04 to $5.59. Tennessee, specializes in
ing for the pump-price Among other stocks mak- Staples fell $1.70, or nearly respiratory therapies for
dividend to filter into their ing big moves: 14 percent, to $10.66. patients with chronic ob-
stores, but for the most —Chipotle Mexican Grill — Stocks of gun makers structive pulmonary dis-
part we’re not seeing it,” dropped $9.45, or 1.7 per- soared on the prospect of ease, or COPD, and ob-
said Jack Ablin, chief in- cent, to $551.75. The res- big sales amid a push for structive sleep apnea,
vestment officer at BMO taurant chain warned late greater gun control fol- or OSA. It employs some
Private Bank. Friday that an outbreak of lowing the San Bernardino 2,700 people in 38 states
Meanwhile, the shift in E. coli linked to its restau- shootings. Smith & Wesson and is mainly active in the
the U.S. to producing rants sent sales plummet- Holding added $1.45, or eastern U.S. Linde says the
more oil has made the ing by as much as 22 per- 7.6 percent, to $20.44.q purchase, which is subject
to regulatory approval, will
strengthen its U.S. growth
and reinforce its position in
health care.q
US faces $1 billion
in trade penalties
for meat labeling
WASHINGTON (AP) — The
World Trade Organization
ruled Monday that Cana-
da and Mexico can slap
more than $1 billion in tariffs
on U.S. goods in retaliation
for meat labeling rules it
says discriminated against
Mexican and Canadian
livestock. At issue were U.S.
labels on packaged steaks
that say where the ani-
thorities but it wasn’t clear arm, according to its web- for illegal stock trading. The mals were born, raised and
whether they were the site. following month, the po- slaughtered. The WTO has
ones being investigated or Authorities are also scruti- lice ministry said Citic exec- previously found that the
were merely being asked nizing two other big Chi- utives including its general so-called “country of ori-
to assist in an investigation nese securities firms as part manager, Cheng Boming, gin” labeling rules put Ca-
The two are the latest ex- of the investigation, which were suspected of insider nadian and Mexican live-
ecutives to go missing many see as an attempt trading and leaking sensi- stock at a disadvantage. It
from Citic as authorities by the ruling Communist tive information. ruled Monday that Cana-
deepen an investigation Party to deflect blame for The company said in a da could impose $780 mil-
the Shanghai index’s 30 statement to the Hong lion in retaliatory tariffs and
ing a spectacular rout on percent drop from its peak. Kong stock exchange that Mexico could impose $228
China’s stock market over State media had encour- operations were “normal” million. The labels, which
the summer. aged the public to buy and some employees who allow consumers to learn
Chen is head of Citic’s stocks, fueling a bubble. were asked to help in un- where their meat came
investment banking busi- In August, the official Xi- specified preliminary in- from, were supported by
ness while Yan is head of nhua news agency said vestigations have returned U.S. ranchers who com-
the company’s interna- eight Citic employees to work, although it didn’t pete with Canada.q
tional investment banking were being investigated name them.q