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Moscow Warns on Low Oil Prices
To many in the West, Russia’s oil wealth is an addiction that has warped its economy. Russian energy czar Igor Sechin considers that envious nonsense. Russia’s resources “are a God-given good that should be used effectively,” he said in his first major interview with a foreign media outlet. “Somebody is always wanting to take them away.”
Ford May Flip to Laggard From Leader If GM Improves
Ford Motor Co. (NYSE:F), the only U.S. automaker not taking federal aid, could lose its competitive edge if President Barack Obama is successful in slimming down General Motors Corp. (NYSE:GM) with lower labor costs, debt and dealers. Obama gave GM 60 days to devise a new strategy to cut costs with its union, slash debt with bondholders and reduce dealers and brands.
Home values sink at record pace in January
Home values in 20 major U.S. cities fell at the fastest rate on record in January and are now down a record 19% in the 12 months ending in January, Standard & Poor’s reported Tuesday. The Case-Shiller 20-city home price index fell a record 2.8% in January, with home values in all 20 cities falling at least 1%. Prices in the original 10-city index fell a record 19.4% over the year. Prices fell 2.5% in January in the 10 cities.
Consumer Spending May Drop by $1 Trillion, AlixPartners Says
Annual consumer spending in the U.S. may decline by more than $1 trillion after the recession ends and shoppers adjust their spending habits, according to a survey conducted by AlixPartners LLP. Americans may save 14 percent of their earnings and focus on replenishing retirement savings, according to the survey of 5,031 people released yesterday.
Expanding Eateries Target Shuttered Sites
As restaurant chains go out of business or prune their store counts in the tough economy, competitors are jumping on the opportunity to move into the vacated locations as a way to expand quickly and cheaply. Restaurants can convert their competitors’ closed sites to their own brands at a lower cost than building new restaurants from scratch, industry executives note.
Sinopec Wins Order to Build Oil, Gas Rigs in Kuwait
China Petroleum & Chemical Corp. (NYSE:SNP), the oil company known as Sinopec, won a contract to build five oil and gas rigs in Kuwait, according to the nation’s state crude producer. The tender is part of Kuwait’s plan to boost oil output to 4 million barrels a day by 2020. The Persian Gulf nation, the fifth-largest producer in the Organization of Petroleum Exporting Countries, pumped 2.14 million barrels a day in February.
Sun-Times Media Group Files for Voluntary Bankruptcy
Sun-Times Media Group Inc. (OTC:SUTM) became the second major Chicago newspaper publisher to seek bankruptcy protection as plunging advertising revenue makes debt payments more difficult. The company, the owner of the namesake newspaper, and its principal operating subsidiary, the Sun-Times News Group, will continue to run their newspapers and online sites while they focus on further improving cost structure and stabilizing operations.
Porsche earns $7.3 billion due to VW options
The world’s best trading desk during the latter half of 2008 belonged to Porsche Automobil Holding (FRA:PAH3), as the automaker made a 5.55 billion euro ($7.3 billion) profit over six months in large part by catching out those who bet against Volkswagen (FRA:VOW). Porsche said in the six months to Jan. 31 its profit climbed to 5.55 billion euros from 1.26 billion euros.
Google to Commit $100 Million to Venture Capital Fund in its First Year
Google Inc. (NASDAQ:GOOG) is expected to Tuesday announce more details about its highly anticipated venture-capital fund, including its plan to commit roughly $100 million to the endeavor in its first year, said people familiar with the matter.
YouTube Seals Deal on ABC, ESPN Clips
Google Inc.’s (NASDAQ:GOOG) YouTube, as part of its battle to lure more premium content to its site, signed a deal with Walt Disney Co. (NYSE:DIS) to offer clips from ABC and ESPN across its video-sharing service. The arrangement entails both companies sharing revenue from advertising shown along with short videos, such as sports highlights, show recaps and original Web series.
‘Monsters’ May Help Theaters Upgrade, Katzenberg Says
DreamWorks Animation SKG Inc.’s (NASDAQ:DWA) $59.3 million opening of “Monsters vs. Aliens” may help secure funding by June for a digital upgrade of U.S. movie theaters, Chief Executive Officer Jeffrey Katzenberg said. “Monsters” had the biggest debut this year in the U.S. and Canada last weekend, according to box-office tracker Media By Numbers LLC. A premium for 3-D tickets padded the haul.
JetBlue extends decline as airlines trade flat
After a brief opening burst to the upside, airline stocks returned to neutral ground Tuesday, trading in a narrow range that left the sector nearly unchanged from the previous session’s close. Shares of JetBlue Airways Corp. (NASDAQ:JBLU) decline, however. Among shares of the big U.S. carriers, gainers included Delta Air Lines (NYSE:DAL), up 3.5% to $5.59, and Southwest Airlines (NYSE:LUV), up 1.6% to $6.27.
