[March 09, 2009]

AP Business NewsBrief at 8:51 a.m. EDT

(AP Online Via Acquire Media NewsEdge) Merck buying Schering-Plough in a $41.1B dealTRENTON, N.J.(AP) _ Merck & Co. is buying Schering-Plough Corp. for $41.1 billion in stock and cash in a deal that gives the companies more firepower to compete in a drug industry facing slumping sales, tough generic competition and intense pricing pressures. The deal announced Monday would unite the maker of asthma drug Singulair with the maker of allergy medicine Nasonex and form the world's second-largest prescription drugmaker. Merck and Schering are already partners in a pair of popular cholesterol fighters, Vytorin and Zetia.

Warren Buffett says economy fell off a cliffOMAHA, Neb. (AP) _ Billionaire Warren Buffett said the economy has "fallen off a cliff" over the past six months and consumers have changed their habits in remarkable ways. Buffett said Monday during a live appearance on CNBC that current economic turmoil has basically followed the worst-case scenario he envisioned.

Banking stocks lead world markets down againLONDON (AP) _ World stock markets fell Monday, with Japan's benchmark tumbling to a 26-year closing low, amid ongoing concerns about the length and depth of the global economic downturn and renewed fears about the financial industry following news the British government was taking a majority stake in another bank. Those concerns were stoked over the weekend by the World Bank's forecast that the global economy will shrink this year for the first time since World War II and the British government's confirmation that it was taking a majority stake in Lloyds Banking Group PLC in exchange for insuring potentially more than 260 billion pounds ($367 billion dollars) of shaky assets.

McClatchy plans to eliminate 1,600 jobsSACRAMENTO, Calif. (AP) _ Newspaper publisher McClatchy Co. said Monday that it plans to eliminate 1,600 jobs, or 15 percent of its work force, as it contends with declining revenue and a deepening recession. The company, which owns The Miami Herald, The Sacramento Bee and other properties, had said that it planned deep cost cuts this year, hoping to save between $100 million to $110 million, and slashed its dividend 90 percent.

Stocks set to open lower after Merck dealNEW YORK (AP) _ Stock futures were lower Monday as a $41 billion deal between drugmakers Merck and Schering-Plough did little to jolt investors out of their pessimistic mood. World stock markets sank amid concerns about the length and depth of the global economic downturn and renewed fears about the financial industry.

Capital One slashes dividend by 87 percentMCLEAN, Va. (AP) _ Capital One Financial Corp. said Monday it is cutting its dividend 87 percent in an effort to preserve capital amid the ongoing economic downturn. Capital One will reduce its quarterly dividend to 5 cents per share from 37.5 cents per share starting in the second quarter. McLean, Va.-based Capital One Financial Corp. says it expects to declare its next quarterly dividend in April. It will be paid in May.

Oil rises to near $46 as investors eye OPEC cutsOil prices rose to near $46 a barrel Monday as investors anticipated another OPEC production cut will shrink global supplies. Gains were kept in check by the strengthening dollar, which drew investors away from commodities. Benchmark crude for April delivery rose 25 cents to $45.77 a barrel by midday in Europe on the New York Mercantile Exchange. Oil prices rose $1.91 on Friday to settle at $45.52. The contract peaked at $47.03 earlier in the session before retreating.

Recession finds even those with jobs losing payIn cubicles, factories and stores these days, anxious workers are trying to ease each other's economic fears with something akin to, "Well, at least we still have a job." Yet for many, that's becoming small comfort as more employers cut hours or hire only part-timers. People paid on commission, meanwhile, are suffering as sales dry up. And state workers around the country have been put on unpaid leaves.

Japan posts record current account deficitTOKYO (AP) _ Japan posted a record current account deficit in January, plunging into the red for the first time in 13 years due to plummeting demand for Japanese exports and a deepening global downturn, the Ministry of Finance said Monday. The deficit stood at a record 172.8 billion yen ($1.8 billion) in January, far bigger than the previous deficit record of 25.6 billion yen in January 1996, the ministry said.

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