Executive Briefing - Sept. 13
- U.S. Stock Markets to Open Monday
- GM Employs Trucks, Couriers to Deliver Paychecks
- ATA Seeks State Information on Fuel Price Hikes
- Jobless Claims Rose, Consumer Sentiment Fell Before Attacks
- Fed Gives $50 Billion to Support European Banks
- Clarification: Roadway Cancels Meeting, Not Debt Deal
- Freight Train, Amtrak Train Collide in Utah
- Arkansas Best Extends Stock Deadline
- MAN to Cut 370 Jobs at Subsidiary
- GM Employs Trucks, Couriers to Deliver Paychecks
U.S. Stock Markets to Open Monday
The U.S. stock markets, including the New York Stock Exchange and Nasdaq, will resume trading on Monday morning at 9:30 a.m. EDT after a four-day shutdown, news services reported.The computer systems used for trading in New York will be tested starting Saturday, Bloomberg reported. Concerns over the stability of the financial district’s infrastructure played a role in the decision to wait until Monday.
The Chicago Board of Trade and Chicago Mercantile Exchange were both open for limited trading on Thursday. U.S. Treasuries surged, pushing the yield on the two-year note to its lowest point since the Eisenhower administration, according to Bloomberg. Transport Topics
GM Employs Trucks, Couriers to Deliver Paychecks
General Motors Corp. pressed delivery trucks and couriers into service to get more than 75,000 employees their paychecks this week, Bloomberg reported.
The news service reported that more than 60% of the company’s 123,900 employees in the United States do not utilize direct-deposit, and depend on receiving the weekly paycheck.
The checks usually are flown in by plane and then delivered by ground to the assembly and component plants late in the week. Transport Topics
Shipping Restricted in New York
Import cargoes are still restricted in New York Harbor after Tuesday’s terrorist attacks, but the overall shipping situation throughout the United States is returning to normal, Bloomberg reported.Coast Guard and police vessels are limiting ship traffic near Manhattan in an area constrained by the George Washington, Triborough and Verrazano Narrows bridges, and Bayonne, N.J.
Shipments of oil and some other cargo is currently being kept of out of New York Harbor, but it being allowed into most other areas. Transport Topics
ATA Seeks State Information on Fuel Price Hikes
The American Trucking Associations has asked all state trucking associations to contact ATA immediately if there are reports of high diesel fuel prices in the aftermath of Tuesday’s terrorist attacks. Transport Topics(Click here for more information from ATA.)
Jobless Claims Rose, Consumer Sentiment Fell Before Attacks
Two economic reports compiled before Tuesday’s terrorist attacks and released on Thursday showed that the U.S. economy was still struggling.Numerous analysts warned that these reports are no longer valid because of all the economic uncertainty related to the attacks, Bloomberg reported.
The Labor Department said that the number of workers filing jobless claims rose by 21,000 to 431,000 for the week ended Sept. 8. That was significantly higher than the 404,000 claims analysts had forecast, Reuters reported.
The four-week moving average, considered a more reliable barometer of employment conditions because it irons out weekly fluctuations, rose to 411,000 last week from 399,500.
Also Thursday, the University of Michigan consumer sentiment survey fell to its lowest points since March 1993. This preliminary report for September found that the index declined to 83.6, from 91.5 in August. Transport Topics
Fed Gives $50B to Support European Banks
The Federal Reserve said Thursday that it was making $50 billion available to stabilize European banking systems, news services reported.The move is the latest attempt to stabilize the global economy following the worst terrorist attack in U.S. history.
The money will be provided in a swap arrangement with the European Central Bank. The Fed will make up to $50 billion available to be deposited in ECB accounts, while the ECB will deposit an equivalent amount of euros, Europe's new currency, at the Fed's New York regional bank.
In Europe, stocks were little changed on Thursday, Reuters reported, while most Asian markets staged small recoveries after large losses on Wednesday. Transport Topics
Clarification: Roadway Cancels Meeting, Not Debt Deal
Roadway Corp. has postponed meetings with debt rating services Standard & Poor’s and Moody’s Investors Service due to this week’s terrorist attacks, Bloomberg reported.The company’s representatives had planned meetings in Lower Manhattan related to a $700 million placement of debt to finance its proposed purchase of Lebanon, Pa.-based Arnold Industries.
Previously, Bloomberg reported that the placement had been postponed due to the attacks, rather than just the actual meeting. Transport Topics published a summary of that report in Wednesday’s Executive Briefing.
Roadway spokesman John Hyre said the meetings will have to be postponed by “a couple of days,” and perhaps rescheduled for locations in midtown Manhattan rather than the downtown financial district.
Hyre also said Thursday that the $475 million deal with Arnold is still scheduled to close by Dec. 31, and that the $700 million debt placement will take place before then. Transport Topics
Freight Train, Amtrak Train Collide in Utah
An Amtrak passenger train crashed into a Union Pacific freight train on Thursday, about 120 miles west of Salt Lake City, news services reported.The Amtrak train was traveling from Chicago to Oakland, Calif., carrying 263 passengers, the Associated Press reported. No passengers were seriously injured, though some were taken to hospitals for broken bones and smoke inhalation.
Amtrak has emerged as an alternative mode of travel in the wake of Tuesday’s terrorist attacks on New York City and Washington. Transport Topics
Arkansas Best Extends Stock Deadline
Arkansas Best Corp. said Wednesday that it has extended the conversion deadline for people who have not surrendered their $2.875 Series A cumulative convertible exchangeable preferred stock.The new deadline is Friday at 6 p.m. EDT. The deadline was extended because of Tuesday's terrorist attacks. Transport Topics
(Click here for the full press release.)
MAN to Cut 370 Jobs at Subsidiary
MAN AG, Germany's No. 2 truck maker, said it will cut 370 jobs at its United Kingdom-based ERF subsidiary, Bloobmerg reported.The company, which said last month second-quarter net income fell 77%, said it taking this action in a big to bring the unit back to profit.
Trucks account for about 40% of MAN's total revenues. Transport Topics
