Referring to Halliburton Co. as "war criminals," former Prime Minister Mahathir Mohamad slammed the government's move to allow the U.S. energy company to begin operating in Malaysia, saying the country doesn't need "blood money."

Treasury Secretary Henry Paulson said Friday that financial markets are "considerably calmer" now than they were two months ago. He predicted the economy will be rebounding by the second half of this year.

Oil prices surged more than $3, shattering a previous record in a spike near $128 a barrel as robust global demand for distillates continued to pull energy futures higher.

Construction of new homes posted the biggest increase in more than two years in April, a rare spot of good news amid the worst downturn in housing in more than two decades.

General Electric Co. says it plans to sell or spin-off its century-old appliance business. The industrial conglomerate said Friday the move is part of an ongoing plan to exit "slower growth and more volatile businesses."