BUSINESS BRIEFS
August consumer spending weakest in 6 months
Associated Press
WASHINGTON — Consumer spending in August turned in the weakest performance in six months, underscoring the threat the economy faces as the government's stimulus program fades into the past.
The Commerce Department reported yesterday that consumer spending was unchanged in August, even worse than the small 0.2 percent gain economists had expected. It was the weakest showing since spending was also flat in February.
Personal incomes were up a better-than-expected 0.5 percent, a rebound after a 0.6 percent drop in July. After-tax incomes, which felt the impact of the stimulus program to a greater extent, dropped by 0.9 percent, however.
OIL PER BARREL DROPS TO $96.36
NEW YORK — Oil prices plunged more than $10 a barrel yesterday as a U.S. financial bailout plan failed to win legislative approval, raising the specter of a prolonged economic downturn that could drastically erode global energy demand.
Light, sweet crude for November delivery sank $10.52, or 10.1 percent, to settle at $96.36 on the New York Mercantile Exchange, after earlier dropping as low as $95.04.
It was the lowest trading level for crude oil since prices edged back below $100 earlier this month; crude previously hadn't traded that low since February.
Crude has fallen almost $25, or 20 percent, in the past week amid talks to hammer out a deal for the $700 billion bailout.
BANK BAILOUTS SPREAD IN EUROPE
LONDON — European governments announced a flurry of bank bailouts from Germany to Iceland yesterday, but the rescue deals only heightened fears that the contagion from the U.S. credit crisis has much farther to spread before the financial system recovers.
European shares fell heavily and money markets remained frozen with banks refusing to lend to each other for all but the shortest periods.
EXPECT TWEAKED MENU AT WENDY'S
NEW YORK — Wendy's customers will see new options on the company's Frosty and burger-heavy menu as the chain tries to draw more attention to the quality of its food, the new chief executive said yesterday after it was formally taken over by the owner of Arby's.
The $2.34 billion deal, in the works for years, adds Wendy's International Inc. to the stable of holdings of Triarc Cos. Inc., the company controlled by billionaire investor Nelson Peltz.
Roland Smith, the new chief executive of Wendy's and the former CEO of Triarc, said he plans to rebrand the business — the No. 3 hamburger chain behind McDonald's and Burger King — to emphasize the freshness of its burgers and will attempt to reinvigorate the menu with new products.
Smith said Wendy's has fallen behind in part because customers have forgotten that the chain sells "the only hamburger that is fresh, not frozen." A new advertising campaign is planned.
