IN BRIEF
Ratings cut for bonds that backed monorail
About $450 million of municipal bonds that helped finance the Las Vegas Monorail had their credit rating cut to C from CC by Fitch Ratings, implying that "default of some kind appears imminent or inevitable."
The July debt service payment will probably be drawn from a surety bond provided by Ambac Assurance Corp. for the reserve fund on the first-tier debt, the rating company said in a statement from New York.
Las Vegas Monorail Co., the nonprofit operator of the 3.9-mile elevated train line, has drawn on cash reserves to make debt payments since January 2008 amid lower-than-expected fare revenue, Fitch said.
Daily average ridership on the monorail fell almost 24 percent during the first five months of year, as the price of an unlimited day pass was raised by a dollar to $13 and the recession led fewer people to visit Las Vegas.
NEW YORK
Sales of new iPhone top 1 million for Apple
Apple Inc. sold more than a million units of its latest iPhone model in the first three days, making it the most successful debut for a smart phone yet.
The iPhone 3G S went on sale Friday in the U.S. and seven other countries.
When Apple Inc. launched the previous model last year, it also sold one million units in the first three days, but that model launched simultaneously in 22 countries.
NEW YORK
Regulators seek data on Merck-Schering deal
Drugmakers Merck and Co. and Schering-Plough Corp., which are involved in a $41.1 billion merger, said Monday the Federal Trade Commission has asked for more information about the deal.
Merck, of Whitehouse Station, N.J., and Schering-Plough, of Kenilworth, N.J., said they expected the request, which was made under federal antitrust law. The companies will honor the request.
Merck agreed to buy Schering-Plough in March; the companies still expect the deal to close in the fourth quarter. The transaction also requires approval by Merck and Schering-Plough shareholders.
The combined company would be the world's second-largest drugmaker by revenue, with products including the asthma drug Singulair and the cholesterol drugs Zetia and Vytorin.
WASHINGTON
Interest rates climb in Treasury auction
Interest rates on short-term Treasury bills rose in Monday's auction with rates on three-month bills rising to their highest level since early April.
The Treasury Department auctioned $31 billion in three-month bills at a discount rate of 0.195 percent, up from 0.16 percent last week. The government auctioned $30 billion in six-month bills at a discount rate of 0.335 percent, up from 0.29 percent last week.
NEW YORK
Treasury prices rise as traders seek safety
Treasury prices rose for a second consecutive trading day Monday as investors clamored for the safety of government debt.
The yield on the 10-year Treasury note slipped to 3.69 percent from 3.78 percent late Friday.
The yield on the 30-year bond fell to 4.43 percent from 4.52 percent late Friday as its price rose 1.09 points to 96.78.
