Business briefs 9/21/06

Federal Reserve leaves funds rates alone

WASHINGTON -- The Federal Reserve left a key interest rate unchanged on Wednesday, as falling energy prices have helped to restrain inflation pressures. Federal Reserve chairman Ben Bernanke and his colleagues issued a brief announcement saying they would leave the federal funds rate, the interest that banks charge each other, at 5.25 percent. The decision represents a break for borrowers. It means that banks' prime lending rate, the benchmark for millions of consumer and business loans, will remain at 8.25 percent. The Fed also had left rates unchanged at their last meeting in August, breaking a record string of 17 rates increases that had driven the funds rate to its highest level in more than five years.

Toyota announces plan to boost sales

TOKYO -- Toyota announced an ambitious plan Wednesday to boost global sales to 9.8 million vehicles in 2008 -- driving home a message of stellar success as its troubled U.S. rivals are closing plants and scaling back production. Japanese automaker Toyota Motor Corp. already surpassed Ford Motor Co. as the world's No. 2 automaker in annual global vehicle sales in 2003. And the latest plan shows Toyota is readying to overtake General Motors Corp. as No. 1. GM sold 9.2 million vehicles worldwide in 2005, the second-largest volume in the company's history. Soaring oil prices have proved a godsend for Toyota as drivers turn to fuel-efficient cars.

Report: HP explored spying on news groups

NEW YORK -- During the boardroom leak investigation that's forcing the chairwoman of Hewlett-Packard Co. to step aside, the company explored the feasibility of planting spies in the offices of two news organizations, The New York Times reported Wednesday. Citing an anonymous individual knowledgeable about HP's investigation techniques, the Times said that in February, senior HP management was briefed on the possibility that investigators could pose as clerical or custodial employees in the San Francisco offices of CNET Networks Inc. and The Wall Street Journal. It was unclear whether the plan was carried out. A spokesman for Dow Jones & Co., publisher of The Wall Street Journal, declined to comment Wednesday. Messages seeking comment from CNET weren't immediately returned.

California sues auto firms over emissions

SACRAMENTO -- California's attorney general on Wednesday sued the six largest U.S. and Japanese automakers, including GM, Ford and Toyota, for damages related to greenhouse gas emissions. The federal lawsuit alleges that emissions from their vehicles have harmed Californians' health, damaged the environment and cost the state millions of dollars to combat their effects. The lawsuit is the latest effort from California to combat the effects of global warming. Last month, the state legislature passed a landmark bill designed to regulate emissions of greenhouse gases from industries. Gov. Arnold Schwarzenegger is expected to sign the measure into law by the end of the month. Two years ago, the state enacted similar requirements for auto emissions, prompting carmakers to file suit in federal court.

-- From wire reports