IN BRIEF
SEATTLE
Washington Mutual warns of income drop
Washington Mutual said Friday that the weak housing market and the recent mortgage crunch will lead to a 75 percent drop in its third-quarter net income, making it the latest financial institution to warn investors it took a major hit over the summer.
WaMu, the nation's largest savings bank, reported net income of $748 million in the third quarter of 2006, meaning third-quarter 2007 net income is likely to be somewhere around $187 million.
The decline in third-quarter income will mostly come from rising provisions for loan losses and write-downs of mortgages Washington Mutual currently holds.
Washington Mutual said its loan loss provision for the quarter will total $975 million. The provision exceeds net charge-offs -- loans written off as having no chance of being recovered -- by $550 million. Loss provisions are used to cover future losses.
AMSTERDAM, Netherlands
Consortium likely to acquire ABN Amro
A consortium led by Royal Bank of Scotland PLC is all but certain to acquire ABN Amro Holding NV in the largest takeover in the history of the financial industry, signaling the likely end for one of Europe's largest banks.
An $88.1 billion cash-and-share offer from rival Barclays PLC was withdrawn Friday in a widely expected concession after the British bank garnered only a fraction of the Dutch bank's shares.
The RBS-led group is expected to cut up the 183-year-old ABN Amro in a $99.9 billion deal. Fortis NV of Belgium wants the bank's Dutch operations, Banco Santander Central Hispano SA of Spain wants its Brazilian and Italian arms, and RBS wants the rest, including ABN's investment banking arm.
Halloween trade shows bound for Las Vegas
The Halloween industry's biggest trade shows will move to Las Vegas next year from Chicago, their home dating back to 1984.
On Friday organizers of TransWorld's International Halloween Costume and Party Show and the National Haunt and Attractions Show announced they would move the events to Las Vegas in time for their 2008 incarnation March 16 to 19 at the Sands Expo and Convention Center.
The events, which are projected to attract about 10,000 attendees combined, should generate about $16 million in spending locally, not including gambling losses.
The two shows cater to different part of the fright industry.
National Haunt consists of the latest developments in animatronics and props, like realistic-looking animal meat made from synthetic materials and a new walk-through attraction that promises to, "change how people experience vertigo."
Transworld's event is geared toward the debut of new Halloween costumes and products. The upcoming event boasts products based on movies, television and erotic-themed costumes.
SAN JOSE, Calif.
Google accused of age discrimination
A 54-year-old former Google manager who claimed he was fired after a supervisor told him his opinions were "too old to matter" had his age discrimination lawsuit reinstated.
Reversing a Santa Clara County trial judge, the state's Sixth District Court of Appeal ruled Thursday that Brian Reid deserves to have a jury hear the evidence he amassed that he says shows Google routinely gave older managers lower evaluations and smaller bonuses than younger managers.
The Mountain View-based search engine company has denied Reid's allegations but also refused to say why he was fired.
WASHINGTON
Carmakers will appeal greenhouse gas ruling
Automakers on Friday said they would appeal a ruling by a federal judge in Vermont that said states could regulate greenhouse gas emissions from vehicles.
The industry, represented by the Alliance of Automobile Manufacturers, has argued that federal law pre-empts state rules in the regulation of fuel economy standards and the technology cannot be developed to meet the tough standards pushed by California and others.
The notice of appeal was filed by attorneys for the Alliance, a trade group representing nine automakers, including General Motors Corp., Ford Motor Co., Chrysler LLC and Toyota Motor Corp. The industry is expected to outline the grounds of the appeal later this month.
NEW YORK
Dollar mixed against major currencies
The dollar was mixed against the major currencies late Friday, falling back from a sharp jump up earlier in the day on the Labor Department's report of September job growth.
The Canadian dollar, riding a surprisingly strong Canadian employment report -- the September jobless rate fell to 5.9 percent, its lowest level since November 1974 -- surged up to 1.0220, buying 97.85 U.S. cents, a 31-year record. The Canadian currency, nicknamed the "loonie," retreated to 1.0184, buying 98.19 U.S. cents, in late New York trading Friday, below Thursday's rate of 99.71 U.S. cents.
SEATTLE
Microsoft spins off 'Halo' game maker
Bungie Studios, the "Halo" video game developer acquired by Microsoft Corp. in 2000, is once again operating as an independent company, Microsoft said Friday.
The software maker will maintain close ties with privately held Bungie LLC and own a minority stake in it, the companies said.
Bungie will develop games exclusively for Microsoft's Xbox 360 and Windows PC platforms "for the foreseeable future," said Harold Ryan, Bungie's president.
DALLAS
TXU will grant credits to settle issues in sale
An arm of TXU Corp. said Friday it has agreed to give $72 million in credits to electricity customers to settle issues in a regulatory review of the $32 billion sale of TXU.
The deal also would dismiss a pending rate case involving Oncor Electric Delivery, TXU's distribution arm.
TXU, the largest power generator in Texas, said the agreement would be filed Friday with the Public Utility Commission.
NEW YORK
MovieGallery has plan for bankruptcy filing
Struggling video-rental company Movie Gallery aims to file for bankruptcy protection under a pre-negotiated deal with key creditors under which the company will convert its bonds into stock, according to people familiar with the matter.
The Dothan, Ala., company will file for bankruptcy this month and hopes to emerge from Chapter 11 in early 2008, sources said.
Under the prenegotiated plan, Movie Gallery would convert its bonds to stock, and a portion of its second-lien debt also will be converted to stock. The company had $1.2 billion in debt as of July, including $322 million in bonds.
NEW YORK
Treasurys sold off after jobless report
Treasury prices sold off sharply Friday after the government's September jobs creation report dimmed hopes for a rate cut later this month.
The benchmark 10-year Treasury note fell 0.97 points to 100.88 with a 4.64 percent yield, up from 4.53 percent at Thursday's close. Prices and yields move in opposite directions.
