WSJ Business News 08302011

Business & Finance

• The Dow industrials gained 254.71 points, or 2.3%, to 11539.25, although trading was diminished in the wake of Hurricane Irene.  The S&P 500 climbed 2.8% while the Nasdaq jumped 3.3%.  Treasurys slipped, sending the 10-year yield to 2.273%
• A merger of two Greek banks sent stocks in Athens surging 14%, while market sentiment elsewhere in Europe was bolstered by Bernanke's remarks on Friday.  
• Bank of America agreed to sell about half its stake in China Construction Bank, booking a $3.3Bn gain and giving CEO Moynihan some more breathing room.  
• Trichet signaled that the ECB may reconsider its longstanding warning about inflation, potentially setting the stage for a lengthy pause in rate increases.  
• China's central bank issued a memo to further rein lending, highlighting continuing tightening efforts as well as how its economic management remains shrouded in secrecy.  
• Inkeepers USA trust sued Cererus, claiming the private-equity firm abandoned a $1.12Bn deal to buy the hotelier as part of a ploy to pay a lower price.  
• Big drug makers are turning more to products like Pfizer's Xalkori, which treat diseases afflicting small numbers of patients, rather than traditional block-busters such as Lipitor.  
• GM's redesign of its Malibu illustrates the many engineering changes needed to hit fuel-economy targets that will eventually require the average new vehicle to get 54.5 miles a gallon.  
• UAW head Bob King's toughest adversary in contract talks with Detroit's auto makers may be his own rank-and-file members.  
• Alan Krueger, Obama's pick to head the White House Council of Economic Advisers, will likely serve as an advocate for more aggressive government intervention to revive job growth.  
• Manchester United choose Singapore for its $1Bn IPO (initial public offering) so it could have a dual-share structure that enables its owners to effectively retain control of the team.