UPI NewsTrack Business

U.S. markets slide Wednesday

NEW YORK, May 13 (UPI) -- U.S. markets lost ground Wednesday after the Commerce Department said retail sales dropped 0.4 percent in April after a 1.3 percent decline in March.

By close, the Dow Jones industrial average dropped 184.22 points, or 2.18 percent, to 8,284.89. The Standard & Poor's (NYSE:MHP) 500 fell 2.69 percent, 24.43 points, to 883.92. The Nasdaq composite index dropped 51.73 points, 3.01 percent, to 1,664.19.

On the New York Stock Exchange, 337 stocks advanced and 2,745 declined on a volume of 7.2 billion shares traded.

The benchmark 10-year U.S. Treasury bond rose 18/32 to yield 3.112 percent.

The euro fell to $1.3597, compared to Tuesday's $1.364. Against the Japanese yen, the dollar fell to 95.21 yen, compared to Tuesday's 96.37 yen.

In Tokyo, the Nikkei average rose 0.45 percent, 41.88 points to 9,340.49.

In London, the FTSE index lost 94.17 points, 2.13 percent, to 4,331.37.
Verizon, Frontier agree to $8.6B sale

NEW YORK, May 13 (UPI) -- Verizon (NYSE:VZ) Communications Inc. said Wednesday it agreed to sell rural wireline operations in 14 states to Frontier Communications (NYSE:FTR) for $8.6 billion.

Verizon Chairman and Chief Executive Officer Ivan Seidenberg said in a statement that customers affected by the deal can rely on Frontier's 'laser focus on the needs of rural customers.'

The two companies would work to 'ensure ... a smooth transition' for employees affected by the transaction, Seidenberg said.

Approximately 11,000 Verizon employees will switch to working for Frontier, Verizon said.

The transaction includes transfer of all of Verizon's wireline operations in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia and Wisconsin. It also includes smaller operations in California that border on Arizona, Nevada and Oregon.

Verizon shareholders are to receive about $5.3 billion of Frontier stock, while the company receives about $3.3 billion in debt securities and cash.
Serbia: IMF to approve $4B standby credit

BELGRADE, Serbia, May 13 (UPI) -- Serbia's central bank governor said the International Monetary Fund will approve a $4 billion stand-by arrangement to stabilize the country's economy.

Radovan Jelasic told reporters in Belgrade Wednesday Serbia will be able to draw the first tranche of $1 billion next week, Belgrade's B92 Web site said. Jelasic said the $1 billion will be used to strengthen Serbia's foreign currency reserves to keep the local dinar stable. The remaining $3 billion of the stand-by deal is likely to be drawn by the end of this year.

The national bank plans to grant Serbian commercial banks short-term credits with a 15 percent interest rate to help ease the economic crisis, Jelasic said.

Belgrade economists estimate Serbia's gross domestic product this year would decline up to 6 percent compared with 2008. Jelasic said he expected inflation this year to exceed 10 percent.
Canadian new-vehicle sales jump 6.3 pct

OTTAWA, May 13 (UPI) -- Canadian sales of new motor vehicles rose 6.3 percent, the largest amount in 14 months, led by an increase in truck purchases, the government said Wednesday.

The increase brought the number of sales in March to 122,194 units, Statistics Canada said

Preliminary industry data indicate the number of new motor vehicles sold in April was essentially unchanged from that of March, the agency said.

Sales of new trucks -- which include minivans, sport utility vehicles, light and heavy trucks, vans and buses -- were up 11 percent to 60,577 units. This rise more than offset February's truck-sales decline, the agency said.

Passenger car sales were up 2 percent to 61,617 units.

Auto sales 'have been increasing slowly for three months following strong declines at the end of 2008,' the agency said.

Increased sales were recorded in all provinces, with Quebec posting a 10.4 percent rise, which accounted for about 45 percent of the national increase.

Ontario sales were up 5.8 percent, the third consecutive monthly gain. Alberta saw the small increase, at 1.8 percent.