| Oil sets record at $100.01 a barrel
The petroleum world produced a record Tuesday, which was bad news for consumers. Frenzied trading sent crude oil surging above $100 a barrel to $100.01 — the highest closing price ever for oil on the New York commodities market, making it likely that gas prices soon will jump, too. In addition, prices for gold, copper and other commodities soared as investment funds sought places to park their money in the face of inflation concerns and a weaker dollar. Also Tuesday, the Energy Department confirmed what anyone who filled up recently already knows — that pump prices are on the rise, bringing the U.S. average back above the $3-a-gallon mark. The nationwide average cost of self-serve regular jumped 8.2 cents over the past week to $3.04 a gallon Monday, released a day late because of the Presidents Day holiday.
Transit lines seeking smartest 'smart card'
As public transit authorities move from tokens and tickets to "contactless" cards, two possible futures await riders. One is a plastic version of the present, where each agency has its own fare card, usable only on its own system. The other future involves mutually acceptable cards, sort of an E-ZPass for transit riders. Smart cards typically have a computer chip and radio antenna that allow passengers to wave the card at a turnstile and be on their way. The fare is automatically deducted from a preloaded sum or from a bank account. With widespread interest in smart cards that can work in multiple cities, the fight now is over the best way to do it - bank cards or transit cards. That battle is shaping up to be the transit version of VHS vs. Betamax.
Fear of unemployment stalks high-flyers in high-rise offices
If New York is often likened to a movie set, the scenes playing out on Wall Street involve a cast of hard-drinking, despondent, young men. "Picture a movie from the 1940s, Bogey is sitting at the bar with a bottle of scotch, three quarters done - that pretty much sums up Wall Street at the moment," says Howard Silverblatt, a senior index analyst for Standard & Poor's in New York. "Everybody is waiting to see the bottom. When you know where that is going to be, you can deal with it, but at the moment we can't see the bottom. Two shoes have already dropped, but how many more will there be?" Andy Brooks, the head of listed stock trading for T Rowe Price, the fund manager, adds: "These are extraordinary times and it is very emotional out there. I haven't seen so much uncertainty in the market since the start of the Iraq war.
From Harare: Election fever starts
Esther (not her real name), 28, a professional living and working in Zimbabwe's capital, Harare, is writing a regular diary on the challenges of leading a normal life. Zimbabwe is suffering from an acute economic crisis. The country has the world's highest rate of annual inflation - 26,000% - and just one in five has an official job. Well Harare is in the grip of high excitement over Simba Makoni's announcement that he is running for president in the 29 March polls. It has to be THE most talked about issue here. .
Asia buckles under U.S. recession fears
Rumors of an emergency FOMC meeting continued to do the rounds in Asia. "There's talk about a Fed meeting - that's what the futures people are telling us," said Ric Klusman at Aequs Securities. "But then again it makes sense for them to wait for the December CPI figures out tonight." Some analysts are saying that those betting on an emergency move seem bound for disappointment, since the official meeting date is too close. "The only other way in which they might get bailed out is if the Fed cuts by 75bps on January 30," said Matthew Johnson at ICAP Australia. "The Fed hasn't cut by 75bps since they moved to interest rate targeting in the early 1990s, and I don't think that they'll do so now." Other analysts suggest an emergency Fed rate cut won't calm market nerves, as these moves may do little to resolve the subprime loan problem fundamentally.
American Express profit hit hard
AMERICAN Express's fourth-quarter profit dropped 10 per cent, with revenue missing analyst forecasts as customers defaulted more often, fanning worries the credit card and travel services company might struggle as the US economy weakens. Shares of American Express, part of the Dow Jones industrial average, fell $US1.30, or 2.7 per cent, to $US46.10 after-hours, after having risen 4.3 per cent during market hours. Net income for the fourth-largest US credit card issuer declined to $US831 million ($936 million), or 71 US cents per share, from $US922 million, or 75 US cents, a year earlier. Profit from continuing operations was also 71 US cents per share. Analysts on average had expected profit of 71 US cents per share. But net revenue, which rose 10 per cent to $US7.36 billion, was below the average forecast of $US7.78 billion, according to Reuters Estimates.
Lenny Kravitz Hospitalized; Postpones Tour
Kravitz's European trip will be rescheduled as soon as possible, Donovan said. His first stop was scheduled for London next Monday, followed by a performance in Brussels, Belgium. Copyright 2008 by The Associated Press. All rights reserved.
This material may not be published, broadcast, rewritten or redistributed. .
BHP Billiton shares tumble after hostile £75bn bid for rival Rio ...
Shares in BHP Billiton tumbled in London today, following its worst day on the Australian markets in two decades, as traders digested the implications of its hostile bid for rival Rio Tinto. BHP shares were down 4% at £15.27 in early afternoon trading in London, having touched £14.95, a fall of 6%. They had fared even worse in Sydney, where the price slumped 7.5%, or A$2.99, to A$36.66. The group, the world's largest miner, last night upped its offer to 3.4 of its shares for every Rio share, up from its rebuffed three-for-one bid. If the £75bn deal goes through, it would be one of the biggest takeovers in corporate history, but analysts are not convinced that BHP has raised its offer by enough. Some suggested that investors are selling BHP shares and buying Rio stock on the basis the bid will eventually be hiked to four-for-one.
|
