Why Fed pledged low rates, how furor over Opel spread

A worker holds up a sign which reads "Don't let Opel die" in front of Opel's plant in the western German city of Bochum

Today's top stories from Report on Business :

GM's Opel decision sparks backlash

Anger swept across Germany today after General Motors Co.'s decision to kill the sale of Opel to Canadian auto-parts maker Magna International Inc. Opel workers planned strikes, and said they would cancel their labour concessions, while politicians slammed the U.S. auto maker's decision to keep its European unit. Germany had put up €1.5-billion in a bridge loan to keep Opel afloat and had promised billions more so that Magna and its Russian partner Sberbank could acquire a 55-per-cent stake in Opel. German Economy Minister Rainer Bruederle vowed to recover the bridge loan, calling GM's decision “totally unacceptable." Russia also called the move “astonishing." GM said it would repay the loan if asked. IG Metall, an industrial union, said workers at Opel's four plants would stop work Thursday, followed by similar moves Friday at other Opel locations in Europe. GM's decision late Tuesday killed the dream of Magna's Frank Stronach to begin assembling his own cars. Magna's stock, however, jumped. Read the story



New York files antitrust suit against Intel

New York Attorney General Andrew Cuomo filed an antitrust suit against Intel Corp. , alleging the world's biggest computer-chip maker of scheming to dominate the market. Mr. Cuomo alleged Intel, whose microprocessors power more than 80 per cent of the world's PCs, violated U.S. state and federal laws through a “systematic worldwide campaign" of threats, bullying and coercion. He alleged that Intel for several years bribed or coerced computer manufacturers such as Hewlett-Packard Co., Dell Inc. and International Business Machines Corp. to use its microprocessors, or not use those of its rivals, in exchange for billions of dollars in payments. Intel, which in May settled issues with the EU for $1.45-billion (U.S.) and has denied wrongdoing, rejected New York's allegations and said it would defend itself. “Neither customers who have benefited from lower prices and increased innovation, nor justice are being served by the decision to file a case now," a spokesman said. Read the story



Chrysler unveils its blueprint

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