New Jersey Business News

Latest local and international economic news, market & financial reports

Circuit City Stores, the nation's second-biggest consumer electronics retailer, reached an agreement with liquidators today to sell the merchandise in its 567 U.S. stores after failing to find a buyer or a refinancing deal.

The company, which employs more than 30,000 employees, said in court papers it has appointed Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators.

The government has extended a new multibillion-dollar lifeline to one of the country's biggest banks as officials continue to struggle with a serious crisis in the financial system.

After a marathon negotiating session, the Bush administration agreed today to provide Bank of America with an additional $20 billion in support from the government's $700 billion financial rescue fund. Bank of America agreed to pay a dividend on the cash injection and will accept more restrictions on executive pay.

A record plunge in gasoline prices pushed overall consumer prices down for the third straight month in December, closing out a year in which the change in inflation was the smallest in more than a half-century.

Concerns remain low about possible deflation, but represent a marked change from just six months ago when soaring energy prices threatened to trigger a widening inflation problem that many analysts believed the Federal Reserve would have to fight by raising interest rates.

A relieved Wall Street advanced in early trading today as investors focused on big banks' plans to fix their balance sheets and took in stride billion-dollar losses reported by Bank of America Corp. and Citigroup Inc.

Investors shook off the big banking companies' multibillion dollar fourth-quarter losses and focused on actions that will affect their future profitability.

Citigroup said it is splitting up into two businesses as it sustains its fifth straight quarterly loss.

One business, Citicorp, will do traditional banking, and the other, Citi Holdings, will hold the company's riskier assets.

The national economic picture may be gloomy, but a poll finds New Jerseyans' confidence in their own financial prospects is at a three-year high.

The annual consumer survey conducted for Fairleigh Dickinson University's Silberman College of Business found 46 percent of respondents believe their personal financial well-being will improve during the next 12 months. Twenty-five percent believe they will be worse off and 16 percent say things will stay about the same. Thirteen percent weren't sure.

Asian stocks rebounded today from the previous day's rout, with Tokyo's index gaining nearly 3 percent, as the U.S. bailed out Bank of America again and a weaker yen lifted exporters like Toyota Motor Corp.

After a tumultuous week that saw markets fall sharply, early trade was cautious but picked up later in the day as investors snapped up beaten down shares.