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5 Big Stories: The Week in Business

A look back at the week's biggest business stories

By Jeff Harrington, Times Deputy Business Editor
Published January 27, 2008

1. Fed tries to prop up markets

The Federal Reserve slashes interest rates by three-fourths of a point in a surprise move.

What it means:Short term, the rate cut mitigates a broad market selloff after global markets tumble. But analysts are looking for more signs of economic strength to avoid a bear market.

2. Wall Street takes roller coaster ride

The Dow began the week with a 465-point drop, shot back up midweek and finished Friday with a 171-point dip.

What it means: Despite the bookend losses, the Dow ended with its first weekly advance of the year. Fasten your seat belt: analysts expect another volatile week ahead.

3. Lean times for big banks

Bank of America and Wachovia report drops in fourth-quarter profits of 95 percent and 98 percent, respectively.

What it means: The two biggest banks in Florida, and plenty of others, have been hit hard by the credit squeeze and mortgage debt.

4. Top automakers vie for bragging rights

General Motors and Toyota reported selling about 9.37-million vehicles worldwide last year.

What it means:Detroit-based GM has held the title of world's largest automaker since the 1930s, but Toyota's growth (and GM's decline) has moved the Japanese automaker to a virtual tie.

5. Finally, some good construction news

While there's scant interest in new homes being built, demand for construction in areas such as power plants, hotels and hospitals is on the rise.

What it means: In the drumbeat of bad housing news, which includes dropping prices for existing homes, the construction trades have something to cheer about.

[Last modified January 25, 2008, 21:31:40]