Dow Jones soars 277 points as global stock markets rally

Financial markets around the world stormed higher Friday after European leaders came up with a breakthrough plan to rescue banks, relieve debt-burdened governments and restore investor confidence.

The Dow Jones industrial average climbed 277 points, its second-biggest gain this year, and stocks advanced even further in Europe, in strong and weak countries alike.

The price of oil posted its biggest one-day increase in more than three years, and other commodities shot higher – signs of hope that a deal in Europe will remove a big barrier to a healthier world economy.

Previous market rallies tied to progress in Europe have proved temporary. But for the day, at least, global stock markets were jubilant: For the day, the Dow closed up 277.83 points, or 2.2 percent, at 12,880.09. The S&P 500 rose 33.12, or 2.5 percent, to 1,362.16. The Nasdaq rose 85.56, or 3 percent, to 2,935.05.

For the year, the Dow is up 662.53 points, or 5.4 percent. The Nasdaq composite index is up 12.7 percent.

Oil soared the most in more than three years. Benchmark U.S. crude jumped by $7.27, or 9.4 percent, on Friday to end the week at $84.96 per barrel in New York. Brent crude, which helps set the price of imported oil, rose by $6.44, or 7 percent, to $95.51 per barrel in London.

AB InBev buys other half of Mexico’s Grupo Modelo

Anheuser-Busch InBev agreed Friday to buy the half of Corona maker Grupo Modelo it doesn’t already own for $20.1 billion in cash, in a deal that will greatly increase the size and dominance of the world’s largest brewer.

The acquisition would bring under one company many of the world’s best-known beer brands – Corona, Modelo and Pacifico would join AB InBev’s Budweiser, Beck’s and Stella Artois, among others.

The combined company would have annual sales of $47 billion, and employ 150,000 workers in 24 countries.

AB InBev, based in Leuven, Belgium, said in a statement it has agreed with Modelo’s management to pay $9.15 per share for the company, a 30 percent premium to the Mexican company’s share price just before news of a possible deal came out on June 22.

Supreme Court upholds ban on owning paper, TV station

The Supreme Court has turned down media companies’ plea to lift a prohibition on owning both a newspaper and a television station in the same market.

The justices on Friday denied the companies’ appeal without comment. The media outlets say the restrictions no longer make sense in the Internet era.

The appeal also sought to get rid of other ownership limits, including how many local television stations one company can control.

The companies say the rules make it harder for broadcasters and newspapers to do business and respond to competitors on the Internet, satellite and cable – entities which don’t face the same restrictions.

Critics of media consolidation have warned of the dangers of too many media outlets falling under the ownership of a handful of large corporations.