Briefcase

Motorola completes long-planned split today

Motorola will split into two publicly traded companies today, a breakup announced in 2008. Motorola Mobility will oversee the company’s cell phone and cable set-top box business, while Motorola Solutions will sell police radios and barcode scanners to government and business customers.

• THE STOCK: Motorola Inc. investors received one share of Mobility and seven shares of Solutions for every eight shares they had owned.

• THE BACKSTORY: Although Motorola’s professional business prospered, its cell phone division struggled for years to compete with the iPhone and other smartphones.

Motorola says the split will help it by allowing it to explain two simpler companies to investors.

Associated Press

Factory output, orders rose in December

Factories boosted output and booked more orders in December, a trade group said Monday. The Institute for Supply Management’s index of manufacturing activity rose to 57 last month. Any reading above 50 indicates growth.

• HIGHER DEMAND: December’s reading is a seven-month high and represents the 17th straight month of growth. Businesses are investing more in equipment and software, and consumers are buying more electronics, computers and autos. More growth is likely this year, economists said, fueled by tax cuts for consumers and businesses.

Associated Press

Weather woes send wheat prices soaring

Wheat prices surged as flooding in Australia and dry, cold weather in the U.S. and China caused concerns about the global supply. Wheat is coming off a year in which poor weather hurt crops in several countries, particularly Russia.

• MIXED METALS: Industrial metals were mixed after a new report said manufacturers produced more goods and booked more orders last month. Meanwhile the government said construction spending rose for a third straight month.

Associated Press

Bank of America settles with Fannie, Freddie

Bank of America Corp. reached a $2.8 billion settlement with Fannie Mae and Freddie Mac over claims that one of its businesses sold bad mortgages. The payment is far lower than analysts expected and removes some uncertainty that has hovered over the bank.

The claims stem from mortgages sold to Fannie and Freddie by former mortgage giant Countrywide Financial, which Bank of America bought in 2008.

Associated Press