Stocks buoyed by Summers' withdrawal from Fed race

LONDON — The withdrawal of Lawrence Summers from the race to succeed Ben Bernanke as chairman of the Federal Reserve gave stocks a boost and weighed on the dollar Monday, as investors believe the move will prolong the U.S. central bank's monetary stimulus.

Summers was perceived in the markets as relatively unenthusiastic about the Fed's aggressive bond-buying program, which have helped push down interest rates to spur lending and economic growth following the financial and economic crisis five years ago. Summers' withdrawal followed a growing chorus of criticism about his suitability for the Fed job, including from some members of the Senate committee that would need to back his nomination.

The Fed's stimulus, which involves buying $85 billion a month in Treasurys and mortgage bonds, is expected to be scaled back soon, possibly as soon as this Wednesday, after the Fed concludes its two-day policy meeting. Summers' withdrawal means Fed vice chair Janet Yellen is considered a front-runner to replace Bernanke when his term concludes early next year.

"Janet Yellen is widely perceived as being the heir to Bernanke's legacy," said Michael Hewson, senior market analyst at CMC Markets. He added that she would bring continuity to U.S. monetary policy, "as opposed to the uncertainty that would surround a Larry Summers candidacy."

That perception had an impact across financial markets.

In Europe, the FTSE 100 index of leading British shares rose 0.6 percent to close at 6,622.86 while the CAC-40 in France increased 0.9 percent to 4,152.22. Germany's DAX was the standout in Europe, advancing 1.2 percent to 8,613, just shy of its record high, hit earlier in the day, of 8,626.11.

In the U.S., the Dow Jones industrial average was up 1.1 percent at 15,546.08 while the broader S&P 500 index rose 1 percent to 1,704.84.

In the currency markets, the euro was 0.1 percent lower at $1.3349 while the dollar was up 0.4 percent at 99.03 yen.

Besides monitoring developments over Bernanke's successor, investors are gearing up for Wednesday's policy announcement from the Fed. At the moment, the consensus in the markets is that it will reduce its stimulus by between $10 billion and $15 billion a month.

A disappointing survey of manufacturing activity around the New York region had little impact on the markets or on expectations as it was offset by a Fed report that found industrial production across the country rose by 0.4 percent in August, in line with market expectations.

Earlier, in Asia, Hong Kong's Hang Seng rose 1.5 percent to 23,252.41. South Korea's Kospi advanced 1 percent to 2,013.37. Australia's S&P/ASX 200 gained 0.5 percent to 5,248. Benchmarks in Indonesia and the Philippines rose 2.6 percent and 2.8 percent respectively. Those in India and Shanghai fell. Markets in Japan were closed for a public holiday.

In the oil markets, traders were monitoring developments over Syria. The recent diplomatic drive, which has seen the prospect decrease of a U.S.-led attack on the Damascus regime over its alleged use of chemical weapons, has pushed oil prices back down. The benchmark New York rate was down another $1.03 at $107.18 a barrel.

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Sampson contributed from Bangkok.

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Mashpee Wampanoags hold groundbreaking for housing

MASHPEE, Mass. — The Mashpee Wampanoag Tribe has broken ground in its first housing development.

Tribal leaders held a ceremonial groundbreaking on Sunday for the development expected to be built next spring.

The Mashpee Wampanoag Housing Program was awarded more than $600,000 in June by the U.S. Department of Housing and Urban Development's Indian Housing Block Grant Program.

The Cape Cod Times (http://bit.ly/19XlXDJ ) reports that the tribe's first housing development, which will consist of 50 to 55 units and a community center, will be constructed on 23 acres.

The first 16 units to be built will be duplexes for tribal elders.

Marie Stone, secretary of the tribal council says many Wampanoag families have found it difficult to remain on Cape Cod because of the high cost of living.

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Information from: Cape Cod (Mass.) Times, http://www.capecodonline.com

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Combined net worth of America's richest rises

NEW YORK — Life is good for America's super wealthy.

Forbes on Monday released its annual list of the top 400 richest Americans. While most of the top names and rankings didn't change from a year ago, the majority of the elite club's members saw their fortunes grow over the past year, helped by strong stock and real estate markets.

"Basically, the mega rich are mega richer," said Forbes Senior Editor Kerry Dolan.

Dolan noted that list's minimum net income increased to a pre-financial crisis level of $1.3 billion, up from $1.1 billion in 2012, with 61 American billionaires not making the cut. "In some ways, it's harder to get on the list than it ever has been," she said.

Microsoft Corp. co-founder Bill Gates remains America's richest man, taking the top spot on the list for the 20th straight year, with a net worth of $72 billion, up from $66 billion a year ago.

Investor Warren Buffett, the head of Berkshire Hathaway Inc., posted another distant second place finish with $58.5 billion, but increased his net worth from $46 billion. Oracle Corp. co-founder Larry Ellison stayed third with $41 billion and was the only member of the top 10 whose net worth was unchanged from a year ago.

Brothers Charles and David Koch, co-owners of Koch Industries Inc., stay tied for fourth with $36 billion each, up from $31 billion in 2012.

Wal-Mart heirs Christy Walton, Jim Walton, Alice Walton and S. Robson Walton took the next four spots, with holdings ranging from $33.3 billion to $35.4 billion, all increasing from year-ago levels. New York City Mayor Michael Bloomberg, the founder of the eponymous financial information company, rounds out the top 10 with $31 billion, up from $25 billion.

According to Forbes, 273 members of the list are self-made billionaires, while 71 inherited their wealth and another 56 inherited at least some of it but are still growing it.

Facebook CEO Mark Zuckerberg returned to the list's top 20 after dropping out the year before. His net worth of $19 billion earned him the No. 20 spot.

Facebook co-founder Dustin Moskovitz also made the list, at No. 85,with a net worth of $5.2 billion. At age 29 and just a few days younger the Zuckerberg, Moskovitz ranks as the youngest member of the list.

On the flip side, the oldest person on the list is 98-year-old David Rockefeller Sr. at No. 193 with a net worth of $2.8 billion.

A total of 20 new people joined the rankings, including Richard Yuengling Jr. of Pennsylvania beer maker D.G. Yuengling & Son, who ranked at No. 371 with $1.4 billion.

Twenty-eight people dropped off the list, including six who died. Those now falling short of the cut include energy tycoon T. Boone Pickens at $950 million, Graham Weston of Rackspace Hosting Inc. at $920 million and Washington Redskins owner Dan Snyder at $1.2 billion.

A total of 48 women made the list including Hyatt Hotels heir Jennifer Pritzker at No. 327. Formerly known as James Pritzker, she's the list's first transgendered member.

According to Forbes, the 400 people on the annual list posted a combined net worth of $2 trillion, up from $1.7 trillion a year ago. That marks their highest combined value ever.

Meanwhile, the average net worth of the list's members rose to $5 billion, also the highest ever, up from $4.2 billion in 2012. Net worth grew for 314 members and fell for 30, Forbes said.

The increases aren't surprising, given that net worth for America's wealthiest people has risen in the years since the financial crisis, widening the gap between the exceptionally well-to-do and the rest of the country.

According to a study of Internal Revenue Service figures released last week, the top 1 percent of U.S. earners collected 19.3 percent of household income in 2012, their largest share in IRS figures going back a century.

U.S. income inequality has been growing for almost three decades. But until last year, the top 1 percent's share of pre-tax income had not yet surpassed the 18.7 percent it reached in 1927, according to the analysis done by economists at the University of California, Berkeley, the Paris School of Economics and Oxford University.

Some economists have speculated that the incomes of the wealthy might have surged in the past year, because they cashed in stock holdings to avoid higher capital gains taxes that kicked in in January.

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The Forbes 400: http://www.forbes.com/forbes400

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Mass. gas prices plunge 8 cents per gallon

BOSTON — The price of a gallon of gas in Massachusetts has dropped by 8 cents in the past week, but the cost remains well above the national average.

AAA Southern New England reported Monday that self-serve, regular has fallen to an average of $3.58 per gallon, 7 cents more than the national average of $3.51.

In-state prices are now 6 cents per gallon lower than a month ago and 32 cents lower than at the same time last year.

AAA found self-serve, regular selling as low as $3.39 and as high as $3.79 per gallon.

AAA also reports that the national average price of gasoline will surpass $3 per gallon Tuesday for the 1,000th consecutive day for the first time on record.

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'GTA' creator Rockstar thrives by breaking the law

Rockstar Games doesn't play by the rules.

Not that anyone would expect the creators of the massively successful "Grand Theft Auto" franchise to operate like other game designers. And while that's created an undeniable mystique around this week's release of "Grand Theft Auto V," it's also raised some questions.

Q: Why now?

Sony and Microsoft are about two months away from unleashing powerful new game consoles. And yet, the biggest release of the holiday season has been designed for their aging workhorses, the PlayStation 3 and the Xbox 360.

Rockstar Vice President — and "GTA V" writer — Dan Houser says the old consoles are perfectly capable of delivering his team's vision. "The fact that hardware's so mature right now is exactly why we're able to go on to the next level," he told Japan's Famitsu magazine last year.

Besides, he added, "All the best games for a console come out at the end of the life cycle, right?" And in a year that's featured stunners like "BioShock Infinite," ''The Last of Us" and "Tomb Raider," he has a point.

The other advantage for Rockstar is the huge combined user base of the PS3 and Xbox 360, which translates into much bigger sales than "GTA V" would rack up among the new consoles' early adopters.

"The demand for (new) consoles appears to be very strong," said GameStop CEO Paul Raines, "but I think 'GTA' is a separate animal — and we will sell a lot of copies of 'GTA V.'"

On the other hand: Won't the absence of "GTA V" hurt sales of the forthcoming PlayStation 4 and Xbox One?

"People are going to buy new consoles because they're ready for a new console," said Michael Pachter, an analyst at Wedbush Securities. "They're not going to say, 'Oh, "GTA V" isn't on it? I'm not buying it.' Nobody is going to buy a new console just to play one game — and no one game is going to keep them from buying a new console."

Q: So what's new here?

Rockstar doesn't participate in the kind of public relations that typically accompany a big-budget video game. It didn't show "GTA V" at the Electronic Entertainment Expo, the annual convention where all the big publishers compete for attention. Instead of a steady flow of previews across every tech news site on the Web, Rockstar has carefully parceled out a screenshot here, an in-game video there. Many critics — even at some huge gaming sites — found themselves frozen out of review copies.

Most gamers, then, won't know what's in "GTA V" until they play it. It's set in the sprawling city and outlying areas of Los Santos, Rockstar's tongue-in-cheek take on Los Angeles. The developers have boasted that the game's virtual footprint is larger than all previous editions of "GTA" combined. Instead of one protagonist, players switch between three criminals: veteran Michael, twisted Trevor and newbie Franklin.

Expect plenty of the franchise's two cornerstones: driving recklessly and killing frequently. Beyond the usual mayhem, you can also play golf and tennis or invest in the stock market. Houser has said it's 100 hours long.

The game will also feature "Grand Theft Auto Online," a separate multiplayer experience.

Q: Wait ... online?

"Grand Theft Auto Online" is far more ambitious than anything Rockstar has tried in the past. The company describes it as "a dynamic and persistent online world for 16 players that begins by sharing gameplay features, geography and mechanics with 'Grand Theft Auto V,' but will continue to expand and evolve after its launch." Rockstar is promising a steady diet of missions, solo and team-based, as well as the ability for "GTA" fans to create their own missions.

The bad news: It doesn't launch until Oct. 1. The good news: It will be free — to anyone who buys "GTA V," of course.

Q: But will it sell?

Of course it will.

"Grand Theft Auto IV," the previous full-fledged "GTA" installment for consoles, shattered entertainment industry records, selling 6 million copies and earning $500 million in sales its first week of release in 2008. That record was later captured by "Call of Duty: Modern Warfare 2" and each subsequent "Call of Duty" launched over the past four years.

"We've had very strong triple-A competitors every single year we've released a 'Call of Duty' game," said Eric Hirshberg, CEO of "Call of Duty" publisher Activision, when asked about "GTA V." ''This year is no different. Maybe the competition is more intense this year than usual, but if we put out a great game, our fans will appreciate it."

A widely circulated report from The Scotsman newspaper estimated that the development and marketing of "GTA V" cost £170 million (or about $265 million). Pachter believes the game's actual cost outside of marketing is more like $100 million.

Whatever the number, Rockstar and Take-Two will surely surpass the success of "GTA IV," which sold 25 million copies. Pachter expects 15 million to 18 million copies sold by the end of the year.

"It's a juggernaut," said GameStop's Raines. "It's a beast."

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AP Entertainment Writer Derrik J. Lang in Los Angeles contributed to this report.

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Forbes list of top 10 American billionaires

The top 10 people on this year's Forbes 400 list are:

— Bill Gates, $72 billion

— Warren Buffett, $58.5 billion

— Larry Ellison, $41 billion

— Charles Koch, $36 billion

— David Koch, $36 billion

— Christy Walton & family, $35.4 billion

— Jim Walton, $33.8 billion

— Alice Walton, $33.5 billion

— S. Robson Walton, $33.3 billion

— Michael Bloomberg, $31 billion

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Chocolate coming on next space station delivery

CAPE CANAVERAL, Fla. — A Virginia company makes its debut this week as a space station delivery service. And the lone American aboard the orbiting lab is counting on a fresh stash of chocolate.

In an interview Monday with The Associated Press, NASA astronaut Karen Nyberg said she can't wait for this weekend's arrival of a new cargo ship named Cygnus. She says it should be similar to other shipments at the International Space Station, even though it will be a first for Orbital Sciences Corp.

Orbital Sciences is scheduled to launch an unmanned Antares rocket containing Cygnus on Wednesday from NASA's Wallops Flight Facility in Virginia. It's where NASA launched a moon spacecraft 1½ weeks ago.

NASA is paying Orbital Sciences and the California-based SpaceX company to keep the space station well stocked.

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Oil falls to near $107 on US-Russia deal for Syria

The price of oil fell to near $107 a barrel Monday on waning fears of a wider Middle East conflict thanks to an international deal intended to halt the use of chemical weapons in Syria.

The benchmark oil contract for October delivery fell $1.11 to $107.10 a barrel in midday trading in New York. The contract for November delivery for Brent crude, the benchmark for international crudes used by many U.S. refineries, fell $1.60 to $110.10 a barrel in London.

The average retail price of gasoline fell less than a penny to $3.52 per gallon. The national average has either fallen or remained flat every day this month, and is now lower than it has been since July 10.

The price of gasoline is slowly falling despite relatively high oil prices because of seasonal factors. Gasoline consumption declines in the fall and looser wintertime clean air rules allow refiners to switch to lower-cost blends of gasoline. Also, a quiet hurricane season so far has meant there have been no weather-related refinery interruptions.

Oil prices are moderating because the deal between American and Russian chemical weapons negotiators reduces the chance of U.S. military action in Syria and the possible spread of Middle East violence.

Syria is not a major oil producer, but oil traders say the possibility of a wider conflict could interrupt production and shipping routes in the Middle East and cause prices to rise. In recent days, oil prices have risen and receded in accordance with the perceived likelihood of a U.S. military attack.

Prices have not fallen further, traders say, because civil unrest and labor conflicts in Libya, which is a major oil producer, has reduced the country's exports.

"The more fundamental issue of constrained Libyan exports continued unabated," said a report from JBC Energy in Vienna.

In other energy futures trading in New York:

— Wholesale gasoline fell 5.2 cents to $2.718 per gallon.

— Natural gas rose 5.5 cents to $3.811 per 1,000 cubic feet.

— Heating oil fell 4 cents to $3.074 per gallon.

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Pablo Gorondi in Budapest and Pamela Sampson in Bangkok contributed to this report.

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Grain futures mixed on the CBOT

CHICAGO — Grains futures were higher Monday in early trading on the Chicago Board of Trade.

Wheat for December delivery was 4.50 higher at 6.46 a bushel; December corn was 2.50 cents higher $4.6150 a bushel; December oats were unchanged at $3.1225 a bushel; while November soybeans were 29.50 cents lower at 13.52 a bushel.

Beef and pork prices were higher on the Chicago Mercantile Exchange.

October live cattle was .50 cent higher at $1.2575 a pound; October feeder cattle was .27 cent higher at $1.5757 a pound; October lean hogs were .60 higher at $.9130 a pound.

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FDA halts drugs from top Indian drugmaker's plant

U.S. health regulators have placed a ban on imported drugs from a factory operated by India's largest pharmaceutical company, Ranbaxy Laboratories, due to manufacturing and quality control problems.

The import alert, issued Friday by the Food and Drug Administration, effectively stops imports of 11 drugs from Ranbaxy's Mohali factory in Punjab province. The agency said Monday its inspectors uncovered multiple violations at the factory last year, including failure to investigate manufacturing problems and failure to follow quality-control standards.

"We want American consumers to be confident that the drugs they are taking are of the highest quality, and the FDA will continue to work to prevent potentially unsafe products from entering the country," said Howard Sklamberg, director of the FDA's office of compliance, in a statement.

Ranbaxy Laboratories Ltd. stock price fell by 30.3 percent to 318.40 rupees ($5.10) by the close of trading on the Bombay Stock Exchange.

Ranbaxy had no immediate comment on Monday.

Under the latest FDA action, Ranbaxy is prohibited from manufacturing drugs for the U.S. market at the facility. The company will have to hire an outside expert to inspect and certify that the facility meets FDA standards before it can resume shipping to the U.S.

With revenues of $2.3 billion for the last fiscal year, Ranbaxy is the leading drugmaker in India's $26 billion generic pharmaceutical industry, but it has faced penalties from U.S. regulators for years.

In May, the company's American subsidiary agreed to pay $500 million in fines and penalties for selling adulterated drugs and lying to federal regulators, the largest financial penalty against a generic drug company for violations of the Federal Food, Drug and Cosmetic Act, which prohibits the sale of impure drugs.

In late 2012, another subsidiary, Ranbaxy Pharmaceuticals Inc., was forced to halt production of a generic version of the cholesterol drug Lipitor to investigate how tiny glass particles got into the ingredients used for dozens of batches that had to be recalled. It was Ranbaxy's second recall of the drug in three months.

Two years ago, the FDA struck a deal that required Ranbaxy Laboratories Ltd. to undergo extra oversight and review from a third-party and improve its drug making. The new sanctions against the Mohali facility are an expansion of this earlier settlement with the agency.

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Johnson reported from Mumbai, India. Perrone reported from Washington DC.

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