DUBAI (Thomson Financial) - The United Arab Emirates will not de-peg its currency from the flagging US dollar, the central bank governor was quoted as saying in remarks published today.
His comments came after former US Federal Reserve chairman Alan Greenspan advised oil-rich Gulf Arab states whose currencies are pegged to the dollar to float their currencies as a means to curb inflation.
"The dollar is on its way to strengthening, and it is not logical to speak now of de-pegging the dirham from the dollar," Sultan bin Nasser al-Suwaidi told the Abu Dhabi-based daily Al-Ittihad.
The peg "greatly benefited the local economy, and helped achieve good rates of growth in the industrial and tourism sectors as well as attract foreign investments," he said.
Suwaidi said the dollar peg had also helped member states of the oil-rich Gulf Cooperation Council prepare for monetary union planned for 2010.
Suwaidi said Greenspan, who made his remarks during a conference in Abu Dhabi on Monday, was merely "putting forward various scenarios to ease the pressure on Gulf economies, which are suffering from high levels of inflation due to several external and internal factors, and not just their currencies link to the dollar."
Greenspan said he believed "floating is better than fixing or revaluation" of the exchange rate against the ailing dollar.
Gulf Arab states, which are US allies, are experiencing high growth rates of between four and eight percent because of rising oil revenues.
But inflation has also risen to double digits in some states, with official figures for UAE at 9.3 percent for 2006.
Since May 2007, when Kuwait dropped its dollar peg and adopted a basket of currencies, there has been constant speculation that the UAE and Qatar would follow suit or revalue their currencies.
But leaders of the GCC -- grouping Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE -- decided at their annual summit in December that their currencies, except for the Kuwait dinar, would remain pegged to the greenback. newsdesk@thomson.com AFP/ajb/rw COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
Thursday, February 28, 2008
England, Wales house prices rise 0.9 pct in Jan from Dec - Land Registry UPDATE
(Adds regional breakdown from 3rd paragraph)
LONDON (Thomson Financial) - House prices in England and Wales rose by 0.9 pct in January from the previous month, reversing December s 0.4 pct decline, data from the Land Registry showed.
Its House Price Index showed the average price for a house was 186,045 stg, up from 184,469 stg in December. However, the annual rate of house price inflation slowed to 6.4 pct from 6.7 pct the previous month.
On a regional basis, the biggest monthly rise was recorded in the north west at 2.0 pct. The only fall was registered in Wales, at -0.3 pct, the figures showed.
The Land Registry said London registered the biggest annual price growth at 13.1 pct, "approximately twice the rate of England and Wales as a whole". chinny.li@thomson.com cml/cmr/cml/slm COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
LONDON (Thomson Financial) - House prices in England and Wales rose by 0.9 pct in January from the previous month, reversing December s 0.4 pct decline, data from the Land Registry showed.
Its House Price Index showed the average price for a house was 186,045 stg, up from 184,469 stg in December. However, the annual rate of house price inflation slowed to 6.4 pct from 6.7 pct the previous month.
On a regional basis, the biggest monthly rise was recorded in the north west at 2.0 pct. The only fall was registered in Wales, at -0.3 pct, the figures showed.
The Land Registry said London registered the biggest annual price growth at 13.1 pct, "approximately twice the rate of England and Wales as a whole". chinny.li@thomson.com cml/cmr/cml/slm COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
Tuesday, February 26, 2008
英刺激經濟擬興建16座大型賭場
英政府定於周二正式公布一項重大計畫，發出新賭牌，準備在全國各地興建十六座大型新賭場，希望刺激英國的旅遊業和整體經濟。當局將會制訂嚴格的條件和監管措施，包括硬性規定各賭場營運商每
年要支付一筆數以百萬英鎊計的費用，作慈善用途。 政界人士透露，文化媒體及體育事務大臣薩克利夫定於周四出席國會會議，到時便會正式公布這項計畫。業界人士透露，政府將會公布開設新賭場的詳情和條件，包括規定每間賭場的老虎機和賭桌的數目。 消息人士稱，薩克利夫將會宣布，在新規例下，賭博業界必須每年合共支付四百萬英鎊（約八百萬美元）給一個賭博責任信託基金（RIGT），而這筆費用將會用來作社會公益及慈善用途。
(星島)
年要支付一筆數以百萬英鎊計的費用，作慈善用途。 政界人士透露，文化媒體及體育事務大臣薩克利夫定於周四出席國會會議，到時便會正式公布這項計畫。業界人士透露，政府將會公布開設新賭場的詳情和條件，包括規定每間賭場的老虎機和賭桌的數目。 消息人士稱，薩克利夫將會宣布，在新規例下，賭博業界必須每年合共支付四百萬英鎊（約八百萬美元）給一個賭博責任信託基金（RIGT），而這筆費用將會用來作社會公益及慈善用途。
(星島)
日債全日多數收升
東京 (XFN-ASIA) - 交易員稱, 日本政府債券價格周二多數收升, 收復早段失地, 主因今日的20年期國債拍賣結果勝預期, 以及日股尾段轉頭回落。 財務省公布, 今日拍賣的8,000億日圓20年期國債最低接受價為99.60日圓, 孳息為2.128%; 競/賣比率4.18倍, 高於上次的2.60倍; 此批20年期國債票息為2.1%。 日股方面, 日經指數早段一度突破萬四關口, 乃1月15日以來首見, 全日收市則下跌0.7%, 報13,824.72點。日股今早上揚, 主因標普確認Ambac Financial Group與MBIA的最高檔評級, 令信貸市場擔憂獲得紓緩。 大和證券首席日債分析師Ryohei Ajisaka指出, 日債價格獲得國債拍賣結果與日股下跌支持, 但與股市跌幅的比較顯示, 日債面臨上行阻力。 日債早段受壓, 主因標普確認Ambac Financial Group與MBIA的"AAA"評級鼓舞美股投資氣氛, 拖累美債價格隔夜低收。 標普同時稱, 這些債券保險商似可籌得足夠資金來應對可能出現的賠償。 Ajisaka認為, 據傳美國市場投資者已拆除避險倉位, 但上述評級確認並非陷入困境的債券保險商的根本出路, 次級按揭問題亦未獲得解決。 投資者正靜候本周的美國與日本經濟數據及事件; 當中日本經濟數據包括工業生產、CPI、失業率和1月份樓市調查。 Aijisaka並稱, 工業生產將成為市場關注焦點, 主因工產數據可指引公司資本開支狀況, 乃日本經濟形勢的關鍵指標。日本政府此前預料, 1月份工產將按月跌0.4%, 2月份亦跌2.2%。 美聯儲局主席貝南克周三及周四將在國會就貨幣政策作證, 料他會對美國經濟前景做出一些暗示。美國末季GDP與樓市數據亦將於本周出爐。 分析師指, 美國經濟前景不容樂觀, 以上數據或印證這一觀點。 此外, 日本央行行長福井俊彥將於下月卸任, 其接替人選亦引起投資者關注。 《日本經濟新聞》上周末報道, 日本政府可能在本周建議任命副行長武籐敏郎為福井的繼任者。 全日收市, 基準10年期國債孳息報1.475%, 低於昨日收市的1.485%。 2年期國債孳息從0.605%, 升至0.615%; 5年期國債孳息從0.960%, 跌至0.955%; 20年期國債孳息從2.120%, 跌至2.110%; 30年期國債孳息從2.360%, 跌至2.345%。 10年期國債期約價格從137.15, 升至137.24日圓。 jx/ch
Taiwan Jan unemployment 3.80 pct vs 3.83 pct in Dec - UPDATE
TAIPEI (XFN-ASIA) - The unemployment rate came in at 3.80 pct in January, down from 3.83 pct in December but up from 3.79 pct in the same month a year ago, the Directorate General of Budget, Accounting and Statistics (DGBAS) said.The jobless rate was the lowest for January in seven years.On a seasonally adjusted basis, the January unemployment rate came in at 3.95 pct, up from 3.94 pct in the previous month and up from 3.88 pct a year earlier, it added.The DGBAS said 411,000 people were jobless in January, a fall of 3,000 from the month before. Major contributors to the decline include a cut of 4,000 in the number of first-time job seekers freshly out of school who failed and a drop of 1,000 in the number who became unemployed owing to dissatisfaction with their previous jobs, it said. Major month-on-month growth included 4,000 in the number of of those who lost their jobs due to business closures or cutbacks and 1,000 who became unemployed owing to termination of seasonal or temporary jobs. On a year-on-year basis, the total number of jobless people in January rose by 8,000, it added. The DGBAS said that in January, the eligible workforce rose by 0.06 pct from the month before and was up by 1.49 pct from a year earlier to 10.80 mln. The January labor participation ratio was 58.32 pct, down from 58.34 pct in the previous month but up from 58.17 pct a year earlier, the DGBAS said. adela.lin@afxasia.comal/kmqMMMM
倫敦市場高開
倫敦 (XFN-ASIA) - 交易員稱, 倫敦市場周二高開, 主因是美股隔晚走強; 住宅營建商Persimmon業績表現良好, 令此類股份受到青睞。 倫敦早上8.05, 富時100指數升14.2點, 報6,013.7; 富時250指數升58.2點, 報10,334.2。 Persimmon領漲, 最新升16-1/2便士, 報780, 該公司去年稅前盈利增1%, 至5.851億英鎊。 ch
台灣1月份工業生產按月升2.03% / 按年升12.29%
台北 (XFN-ASIA) - 台灣經濟部公布, 台灣今年1月份工業生產按月升2.03%, 按年升12.29%。 1月台灣工業生產指數報159.04, 該指數以2001年100點為基值。 去年12月份工業生產按月跌4.11%, 修訂後按年升10.99%; 1月份, 製造業指數按月升1.91%, 按年升12.62%; 住宅建築業指數按月升10.63%, 按年升21.23%。 jx
油價亞洲下午回落
新加坡 (XFN-ASIA) - 油商稱, 周二亞洲下午電子交易中, 國際油價小幅回落, 徘徊在近99美元水平; 土耳其在伊拉克境內的軍事行動及油組減產可能引發的原油供應擔憂, 則為油價提供支援。 紐約4月期油最新跌33仙, 報98.90美元; 該期油隔晚收升42仙。 在倫敦市場高收68仙的布蘭特4月期油則跌29仙, 報97.40美元。 澳洲聯邦銀行商品分析師David Moore認為, 油價目前窄幅波動, 且仍處於高位。 Moore指出, 美國天氣轉冷、地緣政治緊張局勢、以及油組減產預期推動油價上揚。 土耳其安全部門官員稱, 截至周一, 土戰機已連續五天轟炸伊拉克北部Hakurk山區的庫爾德叛軍陣地。 土耳其政府宣布, 約有4,000名庫爾德工人党叛軍藏匿於伊拉克北部, 並將該地區作為襲擊土耳其邊境的跳板。 伊拉克石油部上周六曾稱, 土耳其的軍事行動並未影響伊拉克透過土伊邊境每日出口30萬桶石油。 連接伊拉克北部油田與土耳其港口Ceyhan的輸油管線經過伊北部庫爾德自治區, 土耳其軍隊正在該地區打擊庫爾德叛軍。 2月20日紐約油價曾創101.32美元新高, 原因是投資者擔心供應吃緊, 油組成員國委內瑞拉及尼日利亞局勢不穩進一步加劇了供應面擔憂。 油組秘書長Chakib Khelil周一在阿爾及利亞發表聲明指, 近期油價升至101美元的原因是投資者預料油組將減產。 Khelil暗示, 油組13個成員國定於下周舉行的部長會議將不會決定提升產量。 Khelil並稱, 市場已考慮到油組減產的可能性。 他表示, 3月5日的維也納會議不大可能考慮增產事宜。油組可能維持現時產能或減產, 以便恢復市場平衡及穩定。 Khelil又指, 現時石油供應充裕, 料未來六個月石油消費將減少, 因此油組並不打算增產。 Khelil認為, 過去一個月中油市並無變化, 汽油庫存水平仍非常高, 油價仍與投機、美國經濟衰退趨勢及地緣政治緊張局勢有關。 本月早些時候油組決定維持每日2,967萬桶的產能配額不變。 sh
Monday, February 25, 2008
China overcapacity to be exposed by year end - Lehman
BEIJING (XFN-ASIA) - Overcapacity is likely to show up in the Chinese economy by the end of this year, with short-term factors like the Olympic Games unable to stimulate domestic consumption, said Sun Mingchun, economist with Lehman Brothers. In a note to investors, Sun said that growth in the fourth quarter of this year was likely to fall to below 9 pct, with the global slowdown set to hit China s industrial firms. The fall in exports will bring GDP growth down to 9.5 pct for the whole year, he said. However, it will not lead to a change in China s trade balance, with imports also set to fall, Sun said. The storms that hit southern and central China over the last month are likely to cut Q1 GDP growth to 9.2 pct, and while reconstruction work will push growth back to 10.5 pct in the second quarter, the economy will slow again in the second half of the year, he said. The fillip provided by the Olympic Games in August is unlikely to be significant, Sun said. Inflation is expected to rise to 7.2 pct year on year in the first quarter, and then decline sharply in the second half of the year, Sun said. The Chinese government said at the weekend that more than a sixth of China s total arable land was affected by the bad weather, and that persistent droughts were also hitting agricultural output. Official news agency Xinhua, citing analysts, said that inflationary pressures would remain in the next few months, and that soaring food prices could spill over into other sectors. Lehman has revised its estimate for annual inflation to 4.4 pct from 3.8 pct, but said that China would not raise interest rates again this year. david.stanway@xinhuafinance.comMMMM
李明博宣誓就任南韓總統
首爾 (XFN-ASIA) - 南韓新總統李明博周一宣誓就職。 李明博為保守派, 對商界態度友好, 已承諾將採取措施重振國內經濟; 他在去年12月份的選舉中高票獲勝。 李明博表示, 政府將熱誠為民眾服務, 南韓經濟表現良好, 弱勢及邊緣群體將受到關注, 勞資雙方亦將融洽合作。 ch
展望 - 美國本周主要經濟數據
華盛頓 (XFN-ASIA) - 美國本周將公布下列主要經濟數據, 其中預期值為Thomson s IFR Markets調查所得預測共識: 周一 1月份二手房銷售 預測年率484.0萬夥 / 上月489.0萬夥 周二 1月份PPI 預測按月升0.3% / 上月跌0.1% 1月份核心PPI 預測按月升0.2% / 上月升0.2% 2月份消費信心指數 預測報81.3 / 上月報87.9 周三 1月份耐用品定單 預測按月跌3.5% / 上月升5.2% 1月份剔除運輸品的耐用品定單 預測按月跌0.7% / 上月升2.6% 1月份新屋銷售 預測年率60萬夥 / 上月60.4萬夥 周四 末季GDP初值 預測按年升0.7% / 第三季升0.6% 末季核心PCE物價指數 預測按年升2.6% / 第三季2.6% 上周初領失業金人數 預測35萬 / 前一周34.9萬上周續領失業金人數 預測280萬 / 前一周278.4萬 周五 1月份個人收入 預測按月升0.2% / 上月升0.5% 1月份個人消費開支 預測按月升0.2% / 上月升0.2% 1月份核心PCE物價指數 預測按年升2.2% / 上月升2.2% 2月份芝加哥製造業PMI 預測報50.5 / 上月51.5 2月份密大消費信心指數 預測報70.0 / 上月69.6 ch
報道 - 中國官員稱外儲應用於購買食品等海外資源
北京 (XFN-ASIA) - 香港《南華早報》引述中國中央政策研究室經濟局李連仲局長報道, 中國應該購買食品等海外資源, 作為穩定外匯儲備價值的一種手段。 他稱, 中國應透過儲備能源與鐵礦石等天然資源來穩定外匯儲備價值, 可採取向海外直接購買礦產資源或參股主要礦區的方式進行; 中國亦應該找到一種方法, 將貨幣儲備轉化為食品儲備, 如在其它國家種植糧食作物, 然後將收成返回國內。 他指, 美元貶值已令中國外匯儲備貶值。 hx
中國聯通否認增發A股融資計劃
北京 (XFN-ASIA) - 中國聯通(SHA 600050)一位公關管理人士稱, 聯通沒有在資本市場融資計劃。 該人士是在回應有關聯通擬增發A股融資約600億人民幣的傳聞作上述表示的。 上午9:53, 聯通A股跌7.67%, 至11.20元。 xqy
滬深A股早盤下挫 / 通信銀行股領跌
北京 (XFN-ASIA) - 交易商稱, 受市場流動性收緊拖累, 滬深A股早盤衝高回落, 急速下跌, 電信和銀行股領跌。 上午9:49, 上證指數跌64.31點或1.47%, 報4,305.98點。 中國聯通(SHA 600050)跌5.52%, 至11.47元; 市場傳聞稱該公司擬增發A股融資約600億人民幣。 上海浦發銀行(SHA 600000)帶領金融股走低。該股下挫3.95%, 至38.40元。該公司證實增發股票計劃後遭投資者持續拋售。 招商銀行(SHA 600036)跌3.46%, 至29.30元。該公司超過25億A股將於2月27日結束鎖定期上市交易。 xqy
報道 - 中國雪災死亡人數升至129人
北京 (XFN-ASIA) - 《新京報》引述民政部副部長李立國報道, 中國雪災死亡人數已升至129人, 4人失蹤, 轉移安置群眾170萬人。 李立國稱, 雪災導致48.5萬間房屋倒塌, 直接經濟損失估計達1,516.5億人民幣。 此前媒體報道稱, 中國最近兩月爆發的50年罕見雨雪災害天氣導致107人死亡。 pnx/xqy
中國福耀玻璃07年純利升49% / 汽車玻璃代工業務強勁
北京 (XFN-ASIA) - 福耀玻璃(SHA 600660)發布07年業績報告, 07年公司實現純利9.17億元, 按年升49.39%, 得益於汽車玻璃代工(OEM)業務強勁。 年報顯示, 07年該公司實現營收51.6億元, 按年升31.29%。其中擋風玻璃營收35.5億元, 按年升23.02%; 國際代工業務銷售額增長130%, 國內代工業務增長23.78%。 年報提到, 07年該公司公司在亞太市場的擋風玻璃銷售升64.22%, 北美市場銷售下降2.1%。 該公司07年浮法玻璃營收為20.7億元, 按年升23.32%。 該公司稱, 07年擋風玻璃毛利收窄至35.58%, 對比06年為36.57%, 浮法玻璃毛利為23.32%, 按年升6.48個百分點; 每股收益為0.92元, 對比0.61年。 年報稱, 公司在北京、廣州、海南的項目已於07年8月-10月投產, 乃08年盈利增長點。但年報未對08年盈利做出預測。 該公司計劃07年度向全體股東每10股送10股派5元(含稅)。 福耀玻璃另發布公告稱, 該公司董事會已同意向機構投資者和個人投資者增發新股, 募集資金31.4億元。公司將在3月18日舉行的年度股東大會上審議07年利潤分配方案, 再決定增發新股規模為1億股或2億股。 去年11月, 中證監否決了福耀玻璃擬以每股8元, 向高盛集團附屬GS Capital Partners V Fund LP定向發行1.112億新股的計劃。 pnx/xqy
Sunday, February 24, 2008
Japan s auto sales elsewhere in Asia to top domestic sales in 2008 - report
TOKYO (Thomson Financial) - Japanese automobile sales in other Asian markets are forecast to reach 5 million vehicles in 2008, surpassing the domestic market for the first time, the Nikkei newspaper reported Sunday.
Combined domestic sales by eight Japanese automakers shrank 6 percent to 4.94 million vehicles in 2007, and they are expecting sales at home to remain almost unchanged from the 2007 level, the Nikkei said.
In sharp contrast, sales of Japanese cars in Asia, including China and the Pacific, jumped 14 percent to 4.8 million vehicles last year, the newspaper said.
For 2008, their total Asian sales, excluding Japan, are likely to expand by more than 700,000 vehicles to about 5.5 million, overtaking the Japanese auto market in terms of vehicles sales and trailing only the North American market, where 6.8 million vehicles were sold in 2007.
The home market appears likely to remain in a long slump due in part to the shrinking population, while the North American market, the backbone of Japanese auto sales, is losing steam amid growing signs of an economic downturn.
Domestic automakers are increasingly relying on Asia for their growth amid dimming prospects for the Japanese and North American markets, the Nikkei said.
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Combined domestic sales by eight Japanese automakers shrank 6 percent to 4.94 million vehicles in 2007, and they are expecting sales at home to remain almost unchanged from the 2007 level, the Nikkei said.
In sharp contrast, sales of Japanese cars in Asia, including China and the Pacific, jumped 14 percent to 4.8 million vehicles last year, the newspaper said.
For 2008, their total Asian sales, excluding Japan, are likely to expand by more than 700,000 vehicles to about 5.5 million, overtaking the Japanese auto market in terms of vehicles sales and trailing only the North American market, where 6.8 million vehicles were sold in 2007.
The home market appears likely to remain in a long slump due in part to the shrinking population, while the North American market, the backbone of Japanese auto sales, is losing steam amid growing signs of an economic downturn.
Domestic automakers are increasingly relying on Asia for their growth amid dimming prospects for the Japanese and North American markets, the Nikkei said.
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SKorea s new president seen facing baptism of fire on economic front
SEOUL (Thomson Financial) - South Korea s new self-styled "economy president", Lee Myung-Bak, will face a baptism of fire as he struggles to boost growth in the face of global financial jitters and soaring raw material prices, analysts said.
Lee, the country s first president from a business background, will be sworn in Monday.
He has presented a slew of pro-business policies, including deregulation, privatization, tax cuts and a better climate for foreign investors.
Lee s key "747" pledge is to raise growth to 7 percent during his single five-year term. He wishes to lay the foundations for an increase in per capita income to 40,000 US dollars within a decade, and to make South Korea the world s seventh-largest economy.
Lee was credited with helping to drive South Korea s earlier meteoric growth when he was chief executive of Hyundai Engineering and Construction.
South Koreans count on this background and his "can do" reputation as mayor of Seoul. As mayor, he drove through a popular project to open up a scenic stream through the heart of the capital.
But analysts say Lee will be hobbled by global financial uncertainty, high raw material prices, including oil prices, and a slowing US economy.
"A certain degree of skepticism greets these plans, given that the election of Lee s predecessor generated a similar reform buzz, but he failed to deliver," Daniel Melser of Moody s Economy.com said in a recent report.
"The new president is likely to face similar difficulties, and our hopes for substantive reform are not high."
The installation of a leader who advocates a hands-off approach will at least end some of the ad hoc economic interventions by the previous government, he said.
"But this will do little in the short run to stem the slide in growth and acceleration in inflation," Melser said.
Even before his inauguration, Lee downgraded this year s growth target to 6 percent. The central bank predicts growth will slow to 4.7 percent this year from 4.9 percent in 2007.
Annual inflation jumped to 3.93 percent in January, the highest rate for 39 months.
Daunting task
The success of Lee s reforms also depends on his conservative party winning a majority in the April parliamentary elections, said Yonsei University economics professor Lee Doo-Won.
The new president will be in a better position than his predecessor, Roh Moo-Hyun, since many people believe in his ability somehow to revitalize the economy, he said.
"However, prospects are not so bright."
The most daunting task for the new president, the professor said, is to follow through on his pledge to create about 600,000 new jobs every year.
"Public discontent will grow if this goes wrong."
Last year about 300,000 jobs were created but companies worry that their performance will be undermined by rising raw material prices, Lee Doo-Won said.
Resource-poor South Korea, the world s 13th-largest economy, posted a current account surplus of 6 billion dollars last year.
The central bank predicts the account will register a shortfall of 3 billion dollars this year, which would be the first deficit since 1997.
"Lee s business-friendly policy is expected to invigorate investment," said Hanyang University economics professor Yun Won-Cheol.
"But it s difficult for him to raise growth as he pledged due to uncertainty in global economies.
"High oil prices and a slow US economy may slow our economic recovery."
Yun was also cautious about a 14 trillion won cross-country canal project proposed by Lee as "the environmental revitalization of the 21st century".
"Many experts agree the new president s economic policy is mostly realistic, but they have doubts about the canal project," he said.
(1 US dollar = 952 won)
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Lee, the country s first president from a business background, will be sworn in Monday.
He has presented a slew of pro-business policies, including deregulation, privatization, tax cuts and a better climate for foreign investors.
Lee s key "747" pledge is to raise growth to 7 percent during his single five-year term. He wishes to lay the foundations for an increase in per capita income to 40,000 US dollars within a decade, and to make South Korea the world s seventh-largest economy.
Lee was credited with helping to drive South Korea s earlier meteoric growth when he was chief executive of Hyundai Engineering and Construction.
South Koreans count on this background and his "can do" reputation as mayor of Seoul. As mayor, he drove through a popular project to open up a scenic stream through the heart of the capital.
But analysts say Lee will be hobbled by global financial uncertainty, high raw material prices, including oil prices, and a slowing US economy.
"A certain degree of skepticism greets these plans, given that the election of Lee s predecessor generated a similar reform buzz, but he failed to deliver," Daniel Melser of Moody s Economy.com said in a recent report.
"The new president is likely to face similar difficulties, and our hopes for substantive reform are not high."
The installation of a leader who advocates a hands-off approach will at least end some of the ad hoc economic interventions by the previous government, he said.
"But this will do little in the short run to stem the slide in growth and acceleration in inflation," Melser said.
Even before his inauguration, Lee downgraded this year s growth target to 6 percent. The central bank predicts growth will slow to 4.7 percent this year from 4.9 percent in 2007.
Annual inflation jumped to 3.93 percent in January, the highest rate for 39 months.
Daunting task
The success of Lee s reforms also depends on his conservative party winning a majority in the April parliamentary elections, said Yonsei University economics professor Lee Doo-Won.
The new president will be in a better position than his predecessor, Roh Moo-Hyun, since many people believe in his ability somehow to revitalize the economy, he said.
"However, prospects are not so bright."
The most daunting task for the new president, the professor said, is to follow through on his pledge to create about 600,000 new jobs every year.
"Public discontent will grow if this goes wrong."
Last year about 300,000 jobs were created but companies worry that their performance will be undermined by rising raw material prices, Lee Doo-Won said.
Resource-poor South Korea, the world s 13th-largest economy, posted a current account surplus of 6 billion dollars last year.
The central bank predicts the account will register a shortfall of 3 billion dollars this year, which would be the first deficit since 1997.
"Lee s business-friendly policy is expected to invigorate investment," said Hanyang University economics professor Yun Won-Cheol.
"But it s difficult for him to raise growth as he pledged due to uncertainty in global economies.
"High oil prices and a slow US economy may slow our economic recovery."
Yun was also cautious about a 14 trillion won cross-country canal project proposed by Lee as "the environmental revitalization of the 21st century".
"Many experts agree the new president s economic policy is mostly realistic, but they have doubts about the canal project," he said.
(1 US dollar = 952 won)
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China s inflation soars, and world fears knock-on effects
SHANGHAI (Thomson Financial) - As China s factory floors feel the pressure from spiraling costs, there is growing nervousness in the rest of the world that the Asian giant s next big export could be inflation.
From air-conditioned US shopping malls to bustling African street markets and remote Asian villages, shoppers have become accustomed over recent years to the vast array of ultra-cheap Chinese goods on offer.
China s trade surplus last year reached 262.2 billion US dollars, a more than tenfold rise from 2003.
But now a confluence of factors, led by soaring domestic inflation that hit an 11-year high of 7.1 percent in January, is ramping up the costs of doing business in China, with potential knock-on effects for the rest of the world.
As China s currency has strengthened sharply against the dollar, the government has scrapped export tax rebates, while more stringent labor laws and even the ice and snow storms in southern and central China have further driven up costs.
"China s inflation is having a domino effect on worldwide inflation, especially in the United States," said Li Huiyong, an analyst with Shanghai-based SYWG Research and Consulting.
"In the past, [outside] inflation pressures in the US mainly came from oil prices because the US economy is highly dependent on crude oil. Cheap products from China and other developing countries helped to alleviate that pressure.
"Now Chinese goods are no longer as cheap, it adds to the inflation pressure in the United States."
Nevertheless, while it is clear that doing business in China is getting more expensive, there is no consensus among economists about how much this will result in higher price tags for Chinese-made products overseas.
Wang Qing, chief China economist at Morgan Stanley, stressed that Chinese competitiveness is not about to disappear and that goods from Asia s most populous nation will remain cheap for years.
This would be the case as products moved up the value chain from toys and clothes to cars and high-tech machinery, according to Wang.
"I don t think the days of cheap Chinese goods are over. The inflation that China is experiencing now has a cyclical component. By that I mean the high inflation won t be sustainable," he said.
"What s more important is that you should not just focus on nominal wage growth. You also need to pay attention to labor productivity growth. That s why I think we shouldn t be too alarmed about this."
And given the long and complex business chain between suppliers in China and overseas consumers, a rise in manufacturing costs does not mean that shoppers will immediately have to pay more for Chinese products.
Alarm bells
Aside from cutting their own margins, factories and traders can first look to their customers, many of whom charge huge mark-ups on the wholesale price, to take on more of the financial burden.
For instance, the price of making a branded T-shirt in China may be just a few dollars, but they are typically sold in US malls for 10 or more times this price.
Companies intent on paying bottom dollar for their products could move operations to countries with cheaper overhead costs, such as Vietnam, Sri Lanka or Cambodia.
Alarm bells are definitely ringing in boardrooms across China.
Eating into exporters profit margins, producer prices jumped 6.1 percent last month to a three-year high.
Meanwhile, labor wages last year rose 20 percent and the yuan has appreciated more than nine percent against the US dollar in the past 14 months.
This has meant that more exporters face bankruptcy unless they lift prices to salvage their disappearing margins, which is just what most plan to do.
According to a survey by brokerage and research house CLSA, 80 percent of Chinese exporters intend to raise prices this year in response to higher raw material costs.
"The appreciation of the [yuan] against the US dollar is a secondary factor driving these price hikes," Shanghai-based CLSA economist Andy Rothman said in the survey report.
Yatta Mao, a trade manager at Shanghai-based chemical trading company Hanren, said the tighter business conditions that have emerged over the past year are making it difficult to survive.
"The yuan appreciation has a huge impact on our business. It costs us much more in the production and delivery costs. What s worse, the export tax rebates of 13 percent were canceled, so our total costs are up 20 percent," she said.
And in the southern province of Guangdong, which borders Hong Kong and is one of the country s main export hubs, there are deep feelings of pessimism.
Thousands of Hong Kong- and Taiwan-owned factories based in Guangdong are likely to close soon as they seek cheaper overheads elsewhere, said Alexandra Poon, director of policy research at the Federation of Hong Kong Industries.
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From air-conditioned US shopping malls to bustling African street markets and remote Asian villages, shoppers have become accustomed over recent years to the vast array of ultra-cheap Chinese goods on offer.
China s trade surplus last year reached 262.2 billion US dollars, a more than tenfold rise from 2003.
But now a confluence of factors, led by soaring domestic inflation that hit an 11-year high of 7.1 percent in January, is ramping up the costs of doing business in China, with potential knock-on effects for the rest of the world.
As China s currency has strengthened sharply against the dollar, the government has scrapped export tax rebates, while more stringent labor laws and even the ice and snow storms in southern and central China have further driven up costs.
"China s inflation is having a domino effect on worldwide inflation, especially in the United States," said Li Huiyong, an analyst with Shanghai-based SYWG Research and Consulting.
"In the past, [outside] inflation pressures in the US mainly came from oil prices because the US economy is highly dependent on crude oil. Cheap products from China and other developing countries helped to alleviate that pressure.
"Now Chinese goods are no longer as cheap, it adds to the inflation pressure in the United States."
Nevertheless, while it is clear that doing business in China is getting more expensive, there is no consensus among economists about how much this will result in higher price tags for Chinese-made products overseas.
Wang Qing, chief China economist at Morgan Stanley, stressed that Chinese competitiveness is not about to disappear and that goods from Asia s most populous nation will remain cheap for years.
This would be the case as products moved up the value chain from toys and clothes to cars and high-tech machinery, according to Wang.
"I don t think the days of cheap Chinese goods are over. The inflation that China is experiencing now has a cyclical component. By that I mean the high inflation won t be sustainable," he said.
"What s more important is that you should not just focus on nominal wage growth. You also need to pay attention to labor productivity growth. That s why I think we shouldn t be too alarmed about this."
And given the long and complex business chain between suppliers in China and overseas consumers, a rise in manufacturing costs does not mean that shoppers will immediately have to pay more for Chinese products.
Alarm bells
Aside from cutting their own margins, factories and traders can first look to their customers, many of whom charge huge mark-ups on the wholesale price, to take on more of the financial burden.
For instance, the price of making a branded T-shirt in China may be just a few dollars, but they are typically sold in US malls for 10 or more times this price.
Companies intent on paying bottom dollar for their products could move operations to countries with cheaper overhead costs, such as Vietnam, Sri Lanka or Cambodia.
Alarm bells are definitely ringing in boardrooms across China.
Eating into exporters profit margins, producer prices jumped 6.1 percent last month to a three-year high.
Meanwhile, labor wages last year rose 20 percent and the yuan has appreciated more than nine percent against the US dollar in the past 14 months.
This has meant that more exporters face bankruptcy unless they lift prices to salvage their disappearing margins, which is just what most plan to do.
According to a survey by brokerage and research house CLSA, 80 percent of Chinese exporters intend to raise prices this year in response to higher raw material costs.
"The appreciation of the [yuan] against the US dollar is a secondary factor driving these price hikes," Shanghai-based CLSA economist Andy Rothman said in the survey report.
Yatta Mao, a trade manager at Shanghai-based chemical trading company Hanren, said the tighter business conditions that have emerged over the past year are making it difficult to survive.
"The yuan appreciation has a huge impact on our business. It costs us much more in the production and delivery costs. What s worse, the export tax rebates of 13 percent were canceled, so our total costs are up 20 percent," she said.
And in the southern province of Guangdong, which borders Hong Kong and is one of the country s main export hubs, there are deep feelings of pessimism.
Thousands of Hong Kong- and Taiwan-owned factories based in Guangdong are likely to close soon as they seek cheaper overheads elsewhere, said Alexandra Poon, director of policy research at the Federation of Hong Kong Industries.
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Fla. tourism fell by 1.5M visitors
TALLAHASSEE, Fla. (AP) - Florida s economy, already staggered by a stagnant real estate market and tight credit conditions, suffered another blow Friday when officials said tourism fell by 1.5 million visitors in 2007.
Preliminary estimates showed 82.4 million people visited Florida in 2007, compared to 83.9 who came in 2006. It was the first drop-off in visitors to Florida since shortly after the Sept. 11, 2001 terrorist attacks in the northeast.
"Trends suggest that some vacationers traveling by auto may be staying closer to home," said Bud Nocera, president and CEO of Visit Florida, the state s private-public tourism agency.
Folks in other states apparently were staying closer to home too.
Tourism was flat a year ago as well, increasing by 1 percent, and Visit Florida has renewed its call on the Legislature for money to help lure more visitors with advertising blitzes.
"With ever increasing competition in the market place, it is important for Florida to be top of mind to all potential travelers," said Nicki Grossman, vice chairman of the Florida Commission on Tourism. "Now more than ever, Florida s tourism industry is counting on the Legislature."
Tourism leaders want lawmakers to support Gov. Charlie Crist s $43.3 million budget request for the industry.
Florida tax coffers received $3.9 billion in 2006 from the state s $65 billion tourism industry, which employs nearly 1 million Florida residents.
The Legislature s top economist, Amy Baker, said the national recession was largely responsible for the state s tourism downturn.
"The two places you d see it the most are in sales tax collections and rental car surcharges," Baker said. "The housing was a homegrown problem, the tourism is not."
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Preliminary estimates showed 82.4 million people visited Florida in 2007, compared to 83.9 who came in 2006. It was the first drop-off in visitors to Florida since shortly after the Sept. 11, 2001 terrorist attacks in the northeast.
"Trends suggest that some vacationers traveling by auto may be staying closer to home," said Bud Nocera, president and CEO of Visit Florida, the state s private-public tourism agency.
Folks in other states apparently were staying closer to home too.
Tourism was flat a year ago as well, increasing by 1 percent, and Visit Florida has renewed its call on the Legislature for money to help lure more visitors with advertising blitzes.
"With ever increasing competition in the market place, it is important for Florida to be top of mind to all potential travelers," said Nicki Grossman, vice chairman of the Florida Commission on Tourism. "Now more than ever, Florida s tourism industry is counting on the Legislature."
Tourism leaders want lawmakers to support Gov. Charlie Crist s $43.3 million budget request for the industry.
Florida tax coffers received $3.9 billion in 2006 from the state s $65 billion tourism industry, which employs nearly 1 million Florida residents.
The Legislature s top economist, Amy Baker, said the national recession was largely responsible for the state s tourism downturn.
"The two places you d see it the most are in sales tax collections and rental car surcharges," Baker said. "The housing was a homegrown problem, the tourism is not."
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Gov. vetoes Minn. transportation bill
ST. PAUL (AP) - Gov. Tim Pawlenty vetoed a $6.6 billion transportation plan on Friday, setting the stage for an override attempt by the Democrat-led Legislature as soon as Monday.
Pawlenty s long-promised veto came less than 24 hours after lawmakers sent him the bill, which would raise the state gas tax for the first time in 20 years. His veto letter called the package "an overreaching, massive tax increase."
Earlier, on his weekly radio show, the Republican governor urged people to contact their legislators and tell them to sustain his veto. Pawlenty -- who has now vetoed three major transportation bills since 2005 -- said Democrats ignored him.
"They basically said my views on this were not to be listened to," he said.
The plan would plow $660 million a year into roads, bridges, buses and rail over the next decade. It would raise the state gas tax a nickel per gallon this year and another 3-1/2 cents later to pay off road construction debts. It would add another 0.25 percent to the sales tax in seven metropolitan counties for trains and buses and increase annual tab fees for new cars.
DFL House Speaker Margaret Anderson Kelliher predicted the House would override Pawlenty s veto this time after failing to enact a transportation package over his objections last year. The House vote is the critical test. Thursday s 89-44 vote was one vote shy of a veto-proof majority.
The focus is particularly keen on six House Republicans who voted for the bill and two Democrats who voted against. To override, Kelliher needs to bring the two wayward DFLers into line and hold at least five of the GOP votes. She said she was confident she has the numbers.
"I think my math is right -- we re over the top and we have a veto override," said Kelliher, DFL-Minneapolis.
She said she expected DFL Reps. John Lesch of St. Paul and Mary Ellen Otremba of Long Prairie to go along with an override. Lesch declined to comment. Otremba was noncommittal; she said she would talk with constituents in her district over the weekend.
Kelliher said the current bill was "the art of the possible." Democratic leaders have said they don t plan to offer a second transportation plan this year, even if the override fails.
House Republicans who voted "yes" are Reps. Jim Abeler of Anoka, Ron Erhardt of Edina, Rod Hamilton of Mountain Lake, Bud Heidgerken of Freeport, Neil Peterson of Bloomington and Kathy Tingelstad of Andover.
Minnesota s gas tax hasn t budged from its current level, 20 cents a gallon, since 1988. A compromise on transportation spending has eluded political leaders at the Capitol for years as they disagreed over how to pay for it.
Meanwhile, the state has fallen behind on keeping up roads and bridges -- a problem highlighted by last year s deadly collapse of the Interstate 35W bridge during the evening rush hour.
Pawlenty -- a steadfast opponent of higher taxes -- said the transportation bill would put Minnesota into the nation s top 10 ranking for the gas tax and the sales tax in parts of the Twin Cities. He said the bill would burden taxpayers too much at a time of high gas prices and economic slowdown.
The state s $373 million deficit is expected to get worse with an updated budget forecast on Thursday.
Pawlenty vetoed the transportation bill before heading to Washington for three days of National Governors Association meetings. Spokesman Brian McClung held a Capitol news conference.
"It s not just a gas tax, as is sometimes reported," McClung said. "It is a gas tax increase, a sales tax increase, a license tab tax increase, a brand-new excise tax on the purchase of new cars, and a car rental tax increase. This is a bill that goes way, way too far."
McClung couldn t say whether Pawlenty planned to personally call Republican House members to urge them to sustain his veto. The governor outlined his position at a House GOP caucus meeting on Wednesday.
The transportation bill cleared the House on Thursday after backers made a concession that won over an influential business lobby group, the Minnesota Chamber of Commerce. The package had no trouble making a veto-proof margin in the Senate.
Martiga Lohn may be reached at mlohn(at)ap.org.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Pawlenty s long-promised veto came less than 24 hours after lawmakers sent him the bill, which would raise the state gas tax for the first time in 20 years. His veto letter called the package "an overreaching, massive tax increase."
Earlier, on his weekly radio show, the Republican governor urged people to contact their legislators and tell them to sustain his veto. Pawlenty -- who has now vetoed three major transportation bills since 2005 -- said Democrats ignored him.
"They basically said my views on this were not to be listened to," he said.
The plan would plow $660 million a year into roads, bridges, buses and rail over the next decade. It would raise the state gas tax a nickel per gallon this year and another 3-1/2 cents later to pay off road construction debts. It would add another 0.25 percent to the sales tax in seven metropolitan counties for trains and buses and increase annual tab fees for new cars.
DFL House Speaker Margaret Anderson Kelliher predicted the House would override Pawlenty s veto this time after failing to enact a transportation package over his objections last year. The House vote is the critical test. Thursday s 89-44 vote was one vote shy of a veto-proof majority.
The focus is particularly keen on six House Republicans who voted for the bill and two Democrats who voted against. To override, Kelliher needs to bring the two wayward DFLers into line and hold at least five of the GOP votes. She said she was confident she has the numbers.
"I think my math is right -- we re over the top and we have a veto override," said Kelliher, DFL-Minneapolis.
She said she expected DFL Reps. John Lesch of St. Paul and Mary Ellen Otremba of Long Prairie to go along with an override. Lesch declined to comment. Otremba was noncommittal; she said she would talk with constituents in her district over the weekend.
Kelliher said the current bill was "the art of the possible." Democratic leaders have said they don t plan to offer a second transportation plan this year, even if the override fails.
House Republicans who voted "yes" are Reps. Jim Abeler of Anoka, Ron Erhardt of Edina, Rod Hamilton of Mountain Lake, Bud Heidgerken of Freeport, Neil Peterson of Bloomington and Kathy Tingelstad of Andover.
Minnesota s gas tax hasn t budged from its current level, 20 cents a gallon, since 1988. A compromise on transportation spending has eluded political leaders at the Capitol for years as they disagreed over how to pay for it.
Meanwhile, the state has fallen behind on keeping up roads and bridges -- a problem highlighted by last year s deadly collapse of the Interstate 35W bridge during the evening rush hour.
Pawlenty -- a steadfast opponent of higher taxes -- said the transportation bill would put Minnesota into the nation s top 10 ranking for the gas tax and the sales tax in parts of the Twin Cities. He said the bill would burden taxpayers too much at a time of high gas prices and economic slowdown.
The state s $373 million deficit is expected to get worse with an updated budget forecast on Thursday.
Pawlenty vetoed the transportation bill before heading to Washington for three days of National Governors Association meetings. Spokesman Brian McClung held a Capitol news conference.
"It s not just a gas tax, as is sometimes reported," McClung said. "It is a gas tax increase, a sales tax increase, a license tab tax increase, a brand-new excise tax on the purchase of new cars, and a car rental tax increase. This is a bill that goes way, way too far."
McClung couldn t say whether Pawlenty planned to personally call Republican House members to urge them to sustain his veto. The governor outlined his position at a House GOP caucus meeting on Wednesday.
The transportation bill cleared the House on Thursday after backers made a concession that won over an influential business lobby group, the Minnesota Chamber of Commerce. The package had no trouble making a veto-proof margin in the Senate.
Martiga Lohn may be reached at mlohn(at)ap.org.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Ross plans to buy half of Miami Dolphins
MIAMI (AP) - New York real estate developer Stephen Ross agreed to buy half the Miami Dolphins from owner Wayne Huizenga for $550 million, with an opportunity to become managing general partner.
Ross would acquire 50 percent of the franchise, Dolphin Stadium and surrounding developable land, the team said Friday. The NFL must approve the sale.
Huizenga, the sole owner since 1994, would remain managing general partner for now. He turned 70 in December, and his team is coming off a 1-15 season, the worst in franchise history.
"My heart does not want me to do this, but my head tells me it s the right thing to do," Huizenga said at a news conference. "I will certainly be a part of this team, a partner in this team until I die."
Ross is chairman of the Related Companies, an international real estate development company, and he grew up in South Florida as a Dolphins fans. He said he considered buying other NFL teams in the past, but the Dolphins were his preference.
"I think the price I paid shows that," he said. "I m a fan to start with, and I ll certainly be at the games."
Huizenga said he and Ross will be involved 50-50 in decisions.
"It s kind of like being married," Huizenga said. "No, I take it back. It s not at all like being married."
Negotiations began last April and became public in December. Speculation about a deal faded when Huizenga hired Bill Parcells as executive vice president of football operations and pledged to remain majority owner.
"I have always said that I wanted to bring in a partner, and I can t think of anyone more appropriate than Steve," Huizenga said. "He has unbridled enthusiasm, and I couldn t feel better about the future than I do with Steve as my partner and Bill Parcells running football operations."
Ross said he hasn t spoken with Parcells but is excited to work with him.
"You can t help but respect the track record of Bill Parcells," Ross said.
Ross, who has a home in Palm Beach, has been involved with sports before. He was a minority partner with the NHL s New York Islanders, and in 1990 he was part of a group interested in bringing baseball to Miami.
Instead, Huizenga became founding owner of the Florida Marlins, then later sold the team. Huizenga also was the founding owner of the NHL s Florida Panthers, then sold that franchise.
Football has always been Huizenga s first love, but the Dolphins haven t been to the AFC championship game since he became sole owner. They ve failed to even make the playoffs since 2001 and last season lost their first 13 games.
Still, for an investor, the Dolphins have plenty of appeal. Forbes Magazine last year valued the franchise at $942 million, with a revenue stream of about $215 million. The valuation makes the Dolphins the 15th-priciest NFL franchise.
"Having grown up in South Florida, Dolphins football has been a lifetime passion for me," Ross said. "I am energized by this opportunity, and look forward to being able to once again watch the Dolphins win a Super Bowl alongside all the other loyal Dolphin fans."
Ross would also become part-owner of a stadium that ranks among the NFL s best. Huizenga recently committed to spend about $250 million to upgrade the stadium, with the final phase of work to be completed by 2009.
Huizenga bought the Dolphins from the heirs of team founder Joe Robbie for $138 million.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Ross would acquire 50 percent of the franchise, Dolphin Stadium and surrounding developable land, the team said Friday. The NFL must approve the sale.
Huizenga, the sole owner since 1994, would remain managing general partner for now. He turned 70 in December, and his team is coming off a 1-15 season, the worst in franchise history.
"My heart does not want me to do this, but my head tells me it s the right thing to do," Huizenga said at a news conference. "I will certainly be a part of this team, a partner in this team until I die."
Ross is chairman of the Related Companies, an international real estate development company, and he grew up in South Florida as a Dolphins fans. He said he considered buying other NFL teams in the past, but the Dolphins were his preference.
"I think the price I paid shows that," he said. "I m a fan to start with, and I ll certainly be at the games."
Huizenga said he and Ross will be involved 50-50 in decisions.
"It s kind of like being married," Huizenga said. "No, I take it back. It s not at all like being married."
Negotiations began last April and became public in December. Speculation about a deal faded when Huizenga hired Bill Parcells as executive vice president of football operations and pledged to remain majority owner.
"I have always said that I wanted to bring in a partner, and I can t think of anyone more appropriate than Steve," Huizenga said. "He has unbridled enthusiasm, and I couldn t feel better about the future than I do with Steve as my partner and Bill Parcells running football operations."
Ross said he hasn t spoken with Parcells but is excited to work with him.
"You can t help but respect the track record of Bill Parcells," Ross said.
Ross, who has a home in Palm Beach, has been involved with sports before. He was a minority partner with the NHL s New York Islanders, and in 1990 he was part of a group interested in bringing baseball to Miami.
Instead, Huizenga became founding owner of the Florida Marlins, then later sold the team. Huizenga also was the founding owner of the NHL s Florida Panthers, then sold that franchise.
Football has always been Huizenga s first love, but the Dolphins haven t been to the AFC championship game since he became sole owner. They ve failed to even make the playoffs since 2001 and last season lost their first 13 games.
Still, for an investor, the Dolphins have plenty of appeal. Forbes Magazine last year valued the franchise at $942 million, with a revenue stream of about $215 million. The valuation makes the Dolphins the 15th-priciest NFL franchise.
"Having grown up in South Florida, Dolphins football has been a lifetime passion for me," Ross said. "I am energized by this opportunity, and look forward to being able to once again watch the Dolphins win a Super Bowl alongside all the other loyal Dolphin fans."
Ross would also become part-owner of a stadium that ranks among the NFL s best. Huizenga recently committed to spend about $250 million to upgrade the stadium, with the final phase of work to be completed by 2009.
Huizenga bought the Dolphins from the heirs of team founder Joe Robbie for $138 million.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
S.D. panel OKs liquor license bill
PIERRE, S.D. (AP) - Cities and counties should be allowed to issue additional on-sale liquor licenses for full-service restaurants, a South Dakota House committee decided Friday.
The Commerce Committee voted 11-2 to pass the measure after supporters said current limits on liquor licenses need to be relaxed so communities can promote economic development by attracting new restaurants and convention centers.
Yvonne Taylor, executive director of the South Dakota Municipal League, said the bill will give city and county governments the authority to decide whether they need additional liquor licenses.
"You re not jumping off a cliff," Taylor said. "You can trust them to maintain that quality of their community."
But lobbyists for liquor dealers said allowing additional licenses could cause enforcement problems that lead to additional underage drinking and other legal violations.
"We have adequate regulations in this state. If you remove those regulations, there are potentially negative consequences," said Tim Dougherty, a lobbyist for the Licensed Beverage Dealers Association.
The bill, supported by the Municipal League, was passed earlier by the Senate in a slightly different form. The bill next goes to the full House. A similar measure promoted by the liquor industry also remains alive in the legislative process.
The House and Senate will try to agree on a final version of the legislation before the main run of this year s legislative session ends next week.
State law now uses population as the basis for capping the number of licenses available in a community. Because some cities and counties have reached their limits, the only way a business can get a license is to buy it from an existing license holder. The price for those licenses has risen to $250,000 or more in Sioux Falls and Rapid City, officials have said.
The bill would allow cities and counties to issue additional on-sale licenses for restaurants that get less than half their revenue from alcohol sales.
The value of existing licenses would be protected by setting the price of new licenses at market value, which would be determined by the price of the license most recently sold, prior to Jan. 1 of this year, on the private market in each community.
Anyone seeking a license would first have to try to buy an existing license, a provision that is intended to give businesses with existing licenses a chance to sell them without losing money. A new license could be purchased only if an existing license cannot be bought.
Taylor said the current system ties license numbers to population, not to demand. That has led to speculation in licenses, which has made it impossible for some new businesses to open, she said.
David Wiest of the state Revenue Department said his agency supports the bill.
But Bob Riter, a lobbyist for the South Dakota Music and Vending Association, said it could be difficult to determine the market value of existing licenses because they are often sold along with an operating business. It can be difficult to separate the value of the license from the value of the rest of the business, he said.
In addition, the bill guarantees the price of licenses for only 10 years, Riter said.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
The Commerce Committee voted 11-2 to pass the measure after supporters said current limits on liquor licenses need to be relaxed so communities can promote economic development by attracting new restaurants and convention centers.
Yvonne Taylor, executive director of the South Dakota Municipal League, said the bill will give city and county governments the authority to decide whether they need additional liquor licenses.
"You re not jumping off a cliff," Taylor said. "You can trust them to maintain that quality of their community."
But lobbyists for liquor dealers said allowing additional licenses could cause enforcement problems that lead to additional underage drinking and other legal violations.
"We have adequate regulations in this state. If you remove those regulations, there are potentially negative consequences," said Tim Dougherty, a lobbyist for the Licensed Beverage Dealers Association.
The bill, supported by the Municipal League, was passed earlier by the Senate in a slightly different form. The bill next goes to the full House. A similar measure promoted by the liquor industry also remains alive in the legislative process.
The House and Senate will try to agree on a final version of the legislation before the main run of this year s legislative session ends next week.
State law now uses population as the basis for capping the number of licenses available in a community. Because some cities and counties have reached their limits, the only way a business can get a license is to buy it from an existing license holder. The price for those licenses has risen to $250,000 or more in Sioux Falls and Rapid City, officials have said.
The bill would allow cities and counties to issue additional on-sale licenses for restaurants that get less than half their revenue from alcohol sales.
The value of existing licenses would be protected by setting the price of new licenses at market value, which would be determined by the price of the license most recently sold, prior to Jan. 1 of this year, on the private market in each community.
Anyone seeking a license would first have to try to buy an existing license, a provision that is intended to give businesses with existing licenses a chance to sell them without losing money. A new license could be purchased only if an existing license cannot be bought.
Taylor said the current system ties license numbers to population, not to demand. That has led to speculation in licenses, which has made it impossible for some new businesses to open, she said.
David Wiest of the state Revenue Department said his agency supports the bill.
But Bob Riter, a lobbyist for the South Dakota Music and Vending Association, said it could be difficult to determine the market value of existing licenses because they are often sold along with an operating business. It can be difficult to separate the value of the license from the value of the rest of the business, he said.
In addition, the bill guarantees the price of licenses for only 10 years, Riter said.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Kansas panel put limits on smoking ban
TOPEKA, Kan. (AP) - When the Senate Judiciary Committee finished adding exemptions Friday to a proposed statewide smoking ban, including ones for bars and casinos, some senators saw it as a tarnished shell of a bill that is less likely to pass.
Public health advocates want to ban smoking in most public areas, including restaurants, bars and casinos, and work places. But in a bid to increase its chances for passage, senators drafted the bill so that it left the final decision to county voters on whether they wanted to be part of the ban.
When the committee finished its work, the ban applied mainly to restaurants, public buildings, work places and 80 percent of a hotel s rooms. It still mandated the Nov. 4 vote in each county. In counties that opt out, municipal governments still could enact their own smoking bans.
Supporters said a statewide ban is the only way to create a uniform clean indoor air policy throughout the state. Opponents maintain it would hurt businesses and is an example of the state intruding into local control.
The committee plans to decide Monday whether to send the bill to the Senate and the vote is expected to be close. Chairman John Vratil said the added exemptions won t help its chances.
"I think many people who support the changes won t support the bill and the people who support the bill won t support the amendments," the Leawood Republican said.
Senate Majority Leader Derek Schmidt said the bill s chances for success are tied to how actively those who want the stronger version campaign against it. If the bill fails, smoking bans will remain under the control of local governments.
"It just became the stepchild nobody can love," said the Independence Republican. "It s still a step forward to get clean air in restaurants, but I think that it won t be viewed as sufficient by the people who brought it to the table"
Thirty-one states have some type of statewide smoking ban.
The National Conference of State Legislatures says 22 states require all public places to be smoke-free. An additional six require workplaces and restaurants to be smoke free but exempt bars. Three exempt from their ban restaurants and bars whose customers must be at least age 18 or 21.
Sen. David Wysong, one of the sponsors, was unhappy with the changes and at first refused to comment on the committee s actions. While he wants a statewide ban, he agreed to the county vote because that s the only way it had any chance of passing the Legislature.
"Eighty percent of Kansans do not smoke, yet big tobacco continues to both control the air we breath and -- at this point -- the Kansas Legislature, when it comes to clean indoor air legislation," the Mission Hills Republican said in a statement released later.
Wysong sponsored a smoking ban bill last year that was amended to give counties the option to vote, and many supporters wanting a stronger bill balked. Senate leaders shelved the bill because its passage was doubtful.
Even so, some committee members support the changes in this year s bill.
"I think it helps the bill to find the buoyancy to pass. We limit the negative economic impact on businesses," said Sen. Phil Journey, a Haysville Republican.
One change was aimed at an industry not yet operating but expected to bring millions to the state -- resort casinos and slot machines at race tracks in Frontenac and Kansas City, Kan. Originally the smoking ban applied to them, but the committee changed that.
The state is waiting to see if the Kansas Supreme Court eventually upholds a law enacted last year that permits casinos in Wyandotte, Cherokee, Sumner and Ford counties.
Last week, several bar owners said a smoking ban would hurt business. Those in Lawrence, where there s already a ban, said it has cost them money. The committee excluded bars.
Also added to the exempt list were cigar bars, cigar charity fundraising events, designated smoking areas at adult care homes, tobacco shops, private clubs and bingo parlors where children aren t allowed.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Public health advocates want to ban smoking in most public areas, including restaurants, bars and casinos, and work places. But in a bid to increase its chances for passage, senators drafted the bill so that it left the final decision to county voters on whether they wanted to be part of the ban.
When the committee finished its work, the ban applied mainly to restaurants, public buildings, work places and 80 percent of a hotel s rooms. It still mandated the Nov. 4 vote in each county. In counties that opt out, municipal governments still could enact their own smoking bans.
Supporters said a statewide ban is the only way to create a uniform clean indoor air policy throughout the state. Opponents maintain it would hurt businesses and is an example of the state intruding into local control.
The committee plans to decide Monday whether to send the bill to the Senate and the vote is expected to be close. Chairman John Vratil said the added exemptions won t help its chances.
"I think many people who support the changes won t support the bill and the people who support the bill won t support the amendments," the Leawood Republican said.
Senate Majority Leader Derek Schmidt said the bill s chances for success are tied to how actively those who want the stronger version campaign against it. If the bill fails, smoking bans will remain under the control of local governments.
"It just became the stepchild nobody can love," said the Independence Republican. "It s still a step forward to get clean air in restaurants, but I think that it won t be viewed as sufficient by the people who brought it to the table"
Thirty-one states have some type of statewide smoking ban.
The National Conference of State Legislatures says 22 states require all public places to be smoke-free. An additional six require workplaces and restaurants to be smoke free but exempt bars. Three exempt from their ban restaurants and bars whose customers must be at least age 18 or 21.
Sen. David Wysong, one of the sponsors, was unhappy with the changes and at first refused to comment on the committee s actions. While he wants a statewide ban, he agreed to the county vote because that s the only way it had any chance of passing the Legislature.
"Eighty percent of Kansans do not smoke, yet big tobacco continues to both control the air we breath and -- at this point -- the Kansas Legislature, when it comes to clean indoor air legislation," the Mission Hills Republican said in a statement released later.
Wysong sponsored a smoking ban bill last year that was amended to give counties the option to vote, and many supporters wanting a stronger bill balked. Senate leaders shelved the bill because its passage was doubtful.
Even so, some committee members support the changes in this year s bill.
"I think it helps the bill to find the buoyancy to pass. We limit the negative economic impact on businesses," said Sen. Phil Journey, a Haysville Republican.
One change was aimed at an industry not yet operating but expected to bring millions to the state -- resort casinos and slot machines at race tracks in Frontenac and Kansas City, Kan. Originally the smoking ban applied to them, but the committee changed that.
The state is waiting to see if the Kansas Supreme Court eventually upholds a law enacted last year that permits casinos in Wyandotte, Cherokee, Sumner and Ford counties.
Last week, several bar owners said a smoking ban would hurt business. Those in Lawrence, where there s already a ban, said it has cost them money. The committee excluded bars.
Also added to the exempt list were cigar bars, cigar charity fundraising events, designated smoking areas at adult care homes, tobacco shops, private clubs and bingo parlors where children aren t allowed.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Business Events for the Coming Week
(AP) - Major business events and economic events scheduled for the coming week (some dates are tentative):
MONDAY, Feb. 25
WASHINGTON -- National Association of Realtors reports on existing home sales for January, 10 a.m.; Treasury bill auction.
MOORESVILLE, W.V. -- Lowe s Cos. releases fourth-quarter financial results.
SEATTLE -- Nordstrom Inc. releases fourth-quarter financial results.
TUESDAY, Feb. 26
NEW YORK -- The Conference Board releases the Consumer Confidence Index, 10 a.m.; the S&P/Case-Shiller index of home prices is released, 9 a.m.
WASHINGTON -- Labor Department reports on producer price index for January, 9:30 a.m.
NEW YORK -- CBS Corp. releases fourth-quarter financial results.
GLENDALE, Calif. -- DreamWorks Animation SKG Inc. releases fourth-quarter financial results.
ENGLEWOOD, Colo. -- EchoStar Communications Corp. releases fourth-quarter financial results.
PITTSBURGH -- H.J. Heinz Co. releases third-quarter financial results.
ATLANTA -- Home Depot Inc. releases fourth-quarter financial results.
HOUSTON -- KBR Inc. releases fourth-quarter financial results.
ENGLEWOOD, Colo. -- Liberty Global Inc. releases fourth-quarter financial results.
CINCINNATI -- Macy s Inc. releases fourth-quarter financial results.
CINCINNATI -- Macy s Inc. releases fourth-quarter financial results.
DELRAY BEACH, Fla. -- Office Depot Inc. releases fourth-quarter financial results.
NEW YORK -- Sirius Satellite Radio Inc. releases fourth-quarter financial results.
MINNEAPOLIS -- Target Corp. releases fourth-quarter financial results.
DALLAS -- Tenet Healthcare Corp. releases fourth-quarter financial results.
WEDNESDAY, Feb. 27
WASHINGTON -- Commerce Department reports on durable goods orders for January, 8:30 a.m.; Commerce Department reports on new home sales for January, 10 a.m.
WASHINGTON -- Federal Reserve Chairman Ben Bernanke testifies before the House Financial Services Committee.
ST. LOUIS -- Charter Communications Inc. releases fourth-quarter financial results.
HOUSTON -- Dynegy Inc. releases fourth-quarter financial results.
LAS VEGAS -- Harrah s Entertainment Inc. releases fourth-quarter financial results.
COLUMBUS, Ohio -- Limited Brands Inc. releases fourth-quarter financial results.
HORSHAM, Pa. -- Toll Brothers Inc. releases first-quarter financial results.
WASHINGTON -- Washington Post Co. releases fourth-quarter financial results.
THURSDAY, Feb. 28
WASHINGTON -- Commerce Department reports on gross domestic product, fourth quarter, preliminary, 8:30 a.m.; Labor Department reports on weekly jobless claims, 8:30 a.m.; Freddie Mac reports on mortgage rates.
WASHINGTON -- Federal Reserve Chairman Ben Bernanke testifies before the Senate Banking, Housing and Urban Affairs Committee.
NEW YORK -- American International Group Inc. releases fourth-quarter financial results.
BETHPAGE, N.Y. -- Cablevision Systems Corp. releases fourth-quarter financial results.
ROUND ROCK, Texas -- Dell Inc. releases fourth-quarter financial results.
MCLEAN, Va. -- Freddie Mac releases fourth-quarter financial results.
SAN FRANCISCO -- Gap Inc. releases fourth-quarter financial results.
MENOMONEE FALLS, Wis. -- Kohl s Corp. releases fourth-quarter financial results.
ENGLEWOOD, Colo. -- Liberty Media Corp. releases fourth-quarter financial results.
BEVERLY HILLS, Calif. -- Live Nation Inc. releases fourth-quarter financial results.
HOFFMAN ESTATES, Ill. -- Sears Holdings Corp. releases fourth-quarter financial results.
SMITHFIELD, Va. -- Smithfield Foods Inc. releases third-quarter financial results.
RESTON, Va. -- Sprint Nextel Corp. releases fourth-quarter financial results.
NEW YORK -- Viacom Inc. releases fourth-quarter financial results.
WASHINGTON -- XM Satellite Radio Holdings Inc. releases fourth-quarter financial results.
FRIDAY, Feb. 29
WASHINGTON -- Commerce Department reports on personal income and spending for January, 8:30 a.m.
OMAHA, Neb. -- Berkshire Hathaway Inc. releases fourth-quarter financial results.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
MONDAY, Feb. 25
WASHINGTON -- National Association of Realtors reports on existing home sales for January, 10 a.m.; Treasury bill auction.
MOORESVILLE, W.V. -- Lowe s Cos. releases fourth-quarter financial results.
SEATTLE -- Nordstrom Inc. releases fourth-quarter financial results.
TUESDAY, Feb. 26
NEW YORK -- The Conference Board releases the Consumer Confidence Index, 10 a.m.; the S&P/Case-Shiller index of home prices is released, 9 a.m.
WASHINGTON -- Labor Department reports on producer price index for January, 9:30 a.m.
NEW YORK -- CBS Corp. releases fourth-quarter financial results.
GLENDALE, Calif. -- DreamWorks Animation SKG Inc. releases fourth-quarter financial results.
ENGLEWOOD, Colo. -- EchoStar Communications Corp. releases fourth-quarter financial results.
PITTSBURGH -- H.J. Heinz Co. releases third-quarter financial results.
ATLANTA -- Home Depot Inc. releases fourth-quarter financial results.
HOUSTON -- KBR Inc. releases fourth-quarter financial results.
ENGLEWOOD, Colo. -- Liberty Global Inc. releases fourth-quarter financial results.
CINCINNATI -- Macy s Inc. releases fourth-quarter financial results.
CINCINNATI -- Macy s Inc. releases fourth-quarter financial results.
DELRAY BEACH, Fla. -- Office Depot Inc. releases fourth-quarter financial results.
NEW YORK -- Sirius Satellite Radio Inc. releases fourth-quarter financial results.
MINNEAPOLIS -- Target Corp. releases fourth-quarter financial results.
DALLAS -- Tenet Healthcare Corp. releases fourth-quarter financial results.
WEDNESDAY, Feb. 27
WASHINGTON -- Commerce Department reports on durable goods orders for January, 8:30 a.m.; Commerce Department reports on new home sales for January, 10 a.m.
WASHINGTON -- Federal Reserve Chairman Ben Bernanke testifies before the House Financial Services Committee.
ST. LOUIS -- Charter Communications Inc. releases fourth-quarter financial results.
HOUSTON -- Dynegy Inc. releases fourth-quarter financial results.
LAS VEGAS -- Harrah s Entertainment Inc. releases fourth-quarter financial results.
COLUMBUS, Ohio -- Limited Brands Inc. releases fourth-quarter financial results.
HORSHAM, Pa. -- Toll Brothers Inc. releases first-quarter financial results.
WASHINGTON -- Washington Post Co. releases fourth-quarter financial results.
THURSDAY, Feb. 28
WASHINGTON -- Commerce Department reports on gross domestic product, fourth quarter, preliminary, 8:30 a.m.; Labor Department reports on weekly jobless claims, 8:30 a.m.; Freddie Mac reports on mortgage rates.
WASHINGTON -- Federal Reserve Chairman Ben Bernanke testifies before the Senate Banking, Housing and Urban Affairs Committee.
NEW YORK -- American International Group Inc. releases fourth-quarter financial results.
BETHPAGE, N.Y. -- Cablevision Systems Corp. releases fourth-quarter financial results.
ROUND ROCK, Texas -- Dell Inc. releases fourth-quarter financial results.
MCLEAN, Va. -- Freddie Mac releases fourth-quarter financial results.
SAN FRANCISCO -- Gap Inc. releases fourth-quarter financial results.
MENOMONEE FALLS, Wis. -- Kohl s Corp. releases fourth-quarter financial results.
ENGLEWOOD, Colo. -- Liberty Media Corp. releases fourth-quarter financial results.
BEVERLY HILLS, Calif. -- Live Nation Inc. releases fourth-quarter financial results.
HOFFMAN ESTATES, Ill. -- Sears Holdings Corp. releases fourth-quarter financial results.
SMITHFIELD, Va. -- Smithfield Foods Inc. releases third-quarter financial results.
RESTON, Va. -- Sprint Nextel Corp. releases fourth-quarter financial results.
NEW YORK -- Viacom Inc. releases fourth-quarter financial results.
WASHINGTON -- XM Satellite Radio Holdings Inc. releases fourth-quarter financial results.
FRIDAY, Feb. 29
WASHINGTON -- Commerce Department reports on personal income and spending for January, 8:30 a.m.
OMAHA, Neb. -- Berkshire Hathaway Inc. releases fourth-quarter financial results.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Saturday, February 2, 2008
US, EU unlikely to stop Microsoft deal
WASHINGTON (AP) - U.S. and European antitrust regulators aren t likely to prevent Microsoft from buying Yahoo, analysts said Friday, though scrutiny of the deal could drag on for months.
A major factor weighing in Microsoft Corp. s favor, analysts said, is Google Inc. s dominance in the online search and advertising businesses -- the two areas regulators are likely to focus on when weighing market power issues raised by the nearly $45 billion unsolicited bid.
The Justice Department said it is "interested" in reviewing competition issues raised by Microsoft s surprise offer. The Federal Trade Commission and European Union officials declined to comment. If the deal goes through, analysts expect Congress and European regulators to review the combined company s increased competitive edge.
"I don t see this just sailing through, regulators will look at it," Ted Henneberry of the London law firm Heller Ehrman said. But even after a review that could take up to six months, he said a Microsoft-Yahoo combination isn t likely to be stopped because the new entity s share of the online ad space would still be dwarfed by Google, which already controls nearly 60 percent of the U.S. search market.
"The fact that Google dominates this business will be a big factor in (Microsoft s) favor in trying to get this approved by the regulators," said Keith Hylton, a professor of antitrust law at Boston University.
Alternatively, a combined Yahoo Inc. and Microsoft -- which are the second and third largest U.S. search engines -- could ease concerns about Google s growing power in the ad space. By combining, Microsoft and Yahoo would have a 33 percent share of the U.S. search market, according to the latest data from comScore Media Metrix.
The Federal Trade Commission in December approved Google s $3.1 billion purchase of online advertising company DoubleClick Inc., but European Union regulators are still examining the deal and Google has said it won t go forward without their blessing. (Microsoft lobbied hard against the deal, arguing that it would give Google a dominant position in the online ad market.)
The FTC s OK of the Google-DoubleClick deal surely influenced Microsoft s decision to bid for Yahoo, said Joseph Turow, a professor at the University of Pennsylvania s Annenberg School of Communications who has been critical of the agency and fears that industry consolidation will be bad for consumers.
"Despite the appearance of unlimited choice in the new media environment, people s online activities will be tracked and shaped by a very small number of companies who care far more about surveillance and targeted advertising than the public interest," Turow said.
Marc Rotenberg, executive director of the Electronic Privacy Information Center, agreed and said "the problem of profiling Internet users will become more severe if mergers go forward without appropriate privacy safeguards."
Many Wall Street analysts expect regulators to approve the transaction, which Yahoo said it will "carefully and promptly" study.
Sen. Herb Kohl, D-Wis., chairman of the Senate antitrust subcommittee, said the same issues that prompted lawmakers to review the Google-DoubleClick deal exist in a potential Microsoft-Yahoo combination, including examining how it affects consumers, advertisers and businesses "who increasingly use the Internet for their news, commerce and entertainment."
If Yahoo accepts Microsoft s offer, the subcommittee expects to hold hearings to "explore the competitive and privacy implications of the deal," Kohl said.
A federal judge this week extended by 18 months court oversight of Microsoft s market power, which began in 2002 after a landmark antitrust settlement. Hylton said Justice has been relatively lenient with Microsoft, compared to state attorneys general who pushed for the extension of court oversight of the software giant. Justice officials said the 2002 antitrust settlement had largely served its purpose and should expire.
Shares of Yahoo added $8.84, or 46.1 percent, to $28.02 in afternoon trading, while Microsoft fell $2.15, or 6.6 percent, to $30.45.
AP Writers Christopher S. Rugaber, Michael Liedtke, Jessica Mintz and Aoife White contributed to this report
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
A major factor weighing in Microsoft Corp. s favor, analysts said, is Google Inc. s dominance in the online search and advertising businesses -- the two areas regulators are likely to focus on when weighing market power issues raised by the nearly $45 billion unsolicited bid.
The Justice Department said it is "interested" in reviewing competition issues raised by Microsoft s surprise offer. The Federal Trade Commission and European Union officials declined to comment. If the deal goes through, analysts expect Congress and European regulators to review the combined company s increased competitive edge.
"I don t see this just sailing through, regulators will look at it," Ted Henneberry of the London law firm Heller Ehrman said. But even after a review that could take up to six months, he said a Microsoft-Yahoo combination isn t likely to be stopped because the new entity s share of the online ad space would still be dwarfed by Google, which already controls nearly 60 percent of the U.S. search market.
"The fact that Google dominates this business will be a big factor in (Microsoft s) favor in trying to get this approved by the regulators," said Keith Hylton, a professor of antitrust law at Boston University.
Alternatively, a combined Yahoo Inc. and Microsoft -- which are the second and third largest U.S. search engines -- could ease concerns about Google s growing power in the ad space. By combining, Microsoft and Yahoo would have a 33 percent share of the U.S. search market, according to the latest data from comScore Media Metrix.
The Federal Trade Commission in December approved Google s $3.1 billion purchase of online advertising company DoubleClick Inc., but European Union regulators are still examining the deal and Google has said it won t go forward without their blessing. (Microsoft lobbied hard against the deal, arguing that it would give Google a dominant position in the online ad market.)
The FTC s OK of the Google-DoubleClick deal surely influenced Microsoft s decision to bid for Yahoo, said Joseph Turow, a professor at the University of Pennsylvania s Annenberg School of Communications who has been critical of the agency and fears that industry consolidation will be bad for consumers.
"Despite the appearance of unlimited choice in the new media environment, people s online activities will be tracked and shaped by a very small number of companies who care far more about surveillance and targeted advertising than the public interest," Turow said.
Marc Rotenberg, executive director of the Electronic Privacy Information Center, agreed and said "the problem of profiling Internet users will become more severe if mergers go forward without appropriate privacy safeguards."
Many Wall Street analysts expect regulators to approve the transaction, which Yahoo said it will "carefully and promptly" study.
Sen. Herb Kohl, D-Wis., chairman of the Senate antitrust subcommittee, said the same issues that prompted lawmakers to review the Google-DoubleClick deal exist in a potential Microsoft-Yahoo combination, including examining how it affects consumers, advertisers and businesses "who increasingly use the Internet for their news, commerce and entertainment."
If Yahoo accepts Microsoft s offer, the subcommittee expects to hold hearings to "explore the competitive and privacy implications of the deal," Kohl said.
A federal judge this week extended by 18 months court oversight of Microsoft s market power, which began in 2002 after a landmark antitrust settlement. Hylton said Justice has been relatively lenient with Microsoft, compared to state attorneys general who pushed for the extension of court oversight of the software giant. Justice officials said the 2002 antitrust settlement had largely served its purpose and should expire.
Shares of Yahoo added $8.84, or 46.1 percent, to $28.02 in afternoon trading, while Microsoft fell $2.15, or 6.6 percent, to $30.45.
AP Writers Christopher S. Rugaber, Michael Liedtke, Jessica Mintz and Aoife White contributed to this report
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
EconoLog
NEW YORK (AP) - Is the U.S. economy slipping into recession? Economists, analysts, company executives and investors are increasingly recognizing the possibility. Following are some comments Friday assessing the state of the economy, and what may happen if it slides into a recession:
-- Analysts from Moody s in a conference call cited heightened fear of a recession as one of the reasons the ratings agency is likely to downgrade some bond insurers financial-strength ratings by the end of the month.
-- Goldman Sachs analyst Tetsufumi Yamakawa said in a client note the economic expansion that began in Japan in January 2002 will soon yield to a recession if it has not already. The turmoil in U.S. markets did not trigger this recession, Yamakawa said, but rather a slump in consumer spending, a slowdown in exports and stricter regulations.
-- The last two times the New York Giants have played in the Super Bowl coincided with recession. The 2001 recession started a few months after the Giants lost to Baltimore in Super Bowl XXXV, while the Giants beat Buffalo in Super Bowl XXV about three-quarters through the 90- 91 recession.
-- Citi Investment Research analyst Chip Dillon said he is favorable on containerboard stocks because they tend to do well during and just after recessions.
-- CVS Caremark Corp., which posted same-store sales growth of 4 percent in January versus 2 percent in December, should mitigate recession fears with the sales report, said Wachovia Capital Markets analyst Matt Perry.
-- In a note titled "In Style: Monthly Review of Style and Strategy Performance," Keith Miller and John Rowe of Citi Investment Research said markets struggled in January because of concerns over recession. Strategies that sought to put money into "growth" stocks, or companies poised to grow, did poorly, while many "value" investors, who try to figure out whether stocks are over- or under-valued by the market, did well.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
-- Analysts from Moody s in a conference call cited heightened fear of a recession as one of the reasons the ratings agency is likely to downgrade some bond insurers financial-strength ratings by the end of the month.
-- Goldman Sachs analyst Tetsufumi Yamakawa said in a client note the economic expansion that began in Japan in January 2002 will soon yield to a recession if it has not already. The turmoil in U.S. markets did not trigger this recession, Yamakawa said, but rather a slump in consumer spending, a slowdown in exports and stricter regulations.
-- The last two times the New York Giants have played in the Super Bowl coincided with recession. The 2001 recession started a few months after the Giants lost to Baltimore in Super Bowl XXXV, while the Giants beat Buffalo in Super Bowl XXV about three-quarters through the 90- 91 recession.
-- Citi Investment Research analyst Chip Dillon said he is favorable on containerboard stocks because they tend to do well during and just after recessions.
-- CVS Caremark Corp., which posted same-store sales growth of 4 percent in January versus 2 percent in December, should mitigate recession fears with the sales report, said Wachovia Capital Markets analyst Matt Perry.
-- In a note titled "In Style: Monthly Review of Style and Strategy Performance," Keith Miller and John Rowe of Citi Investment Research said markets struggled in January because of concerns over recession. Strategies that sought to put money into "growth" stocks, or companies poised to grow, did poorly, while many "value" investors, who try to figure out whether stocks are over- or under-valued by the market, did well.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Business Highlights
SAN FRANCISCO (AP) - Microsoft Corp. has pounced on slumping Internet icon Yahoo Inc. with an unsolicited takeover offer of $44.6 billion in its boldest bid yet to challenge Google Inc. s dominance of the lucrative online search and advertising markets.
The surprise offer of $31 per share, made late Thursday and announced Friday, seizes on Yahoo s weakness while Microsoft tries to muscle up in a high-stakes battle with Google likely to define the technology landscape for years to come.
In a statement Friday, Yahoo said it will "carefully and promptly" study Microsoft s bid.
With its profits steadily sliding, Yahoo s stock slipped to a four-year low earlier this week and a new management team has been trying to steer a turnaround but sees more turbulence through 2008.
NEW YORK (AP) -- Wall Street capped a week of big gains with another sizable advance Friday after investors set aside anxiety over news that the economy lost jobs last month and focused on Microsoft Corp. s bid for Internet company Yahoo Inc. and a possible rescue plan for the troubled bond insurance sector.
The Dow Jones industrial average and the Standard & Poor s 500 index each rose more than 4 percent for the week, their steepest gains since March 2003.
Stocks fluctuated at times Friday, however, as investors weighed seemingly contradictory readings on the economy. Wall Street was pleased by Microsoft s $44.6 billion bid for Yahoo. Merger news, which often energizes stocks, has been in short supply for months. But the mix of economic news reminded investors of the continuing fallout from the housing and mortgage crisis.
WASHINGTON (AP) -- In a shower of pink slips, U.S. employers cut jobs last month for the first time in more than four years, the starkest signal yet that the economy is grinding to a halt if it hasn t already toppled into recession.
Conditions are deteriorating, according to the latest employment snapshot by the Labor Department, which showed nervous employers slicing payrolls by 17,000. The country hadn t seen such a nationwide job loss since 2003, when employers were still struggling to recover from the last previous recession.
Job losses were widespread in January. Factories, construction companies, mortgage brokers and real-estate firms were among those eliminating jobs -- casualties of the housing bust and credit crunch. The government cut jobs for the first time since last July.
HOUSTON (AP) -- Beating its own record to rack up the largest annual corporate profit in American history, Exxon Mobil Corp. said Friday it earned $40.6 billion for the year, reaping the benefits of crude-oil prices around $100 a barrel.
Exxon Mobil also topped its own record for profit in a single quarter, posting net income of $11.7 billion for the final three months of the year -- about $1 billion more than the same period in 2005, the previous quarterly record.
Chevron Corp., No. 2 behind Exxon Mobil among U.S. oil companies, also had its best year ever in 2007, saying Friday that it banked a profit of $18.7 billion.
KANSAS CITY, Mo. (AP) -- President Bush pressed Congress to pass an economic rescue package, saying Friday s labor report marking the end of a 52-month streak of national job growth was another "troubling" sign that the economy is sputtering.
Bush toured Hallmark Cards Inc. in the nation s heartland to push a plan of tax rebates for millions of people and tax breaks for companies. The stimulus package, passed by the House, has hit roadblocks in the Senate.
The president spoke just hours after the Labor Department reported that employers cut 17,000 jobs in January -- the first such reduction in more than four years.
NEW YORK (AP) -- Oil prices fell sharply Friday, closing well under $90 a barrel after a string of dismal economic reports renewed worries that a possible U.S. recession could stunt oil demand.
Responding to recent price declines, OPEC said Friday it will maintain current oil output levels.
The week ended with the Labor Department reporting that employers cut 17,000 jobs last month, the first reduction in more than four years and a sign that the economy continues to weaken. Construction spending also fell by a record amount, according to the Commerce Department, reflecting a sharp pullback in residential building.
VIENNA, Austria (AP) -- OPEC decided Friday to keep pumping oil at present levels -- a rebuff to Washington and a possible prelude to cutting production as early as next month if the shaky U.S. economy puts a dent in demand.
The decision was taken despite U.S. urging -- backed by other major consumers -- for more oil on the market to cool prices and relieve inflationary pressures that have contributed to fears of a global economic downturn.
But the 13-nation Organization of Petroleum Exporting Countries would not be swayed from arguments that supplies were adequate and that speculators and geopolitical jitters, not oil availability, were driving the market.
WASHINGTON (AP) -- Government regulators said Friday the connection between Pfizer s anti-smoking drug Chantix and serious psychiatric problems is "increasingly likely."
The Food and Drug Administration said it has received reports of 37 suicides and more than 400 of suicidal behavior in connection with the drug. In November, the agency began investigating reports of depression, agitation and suicidal behavior among patients taking the popular twice-daily pill.
The agency s announcement comes two weeks after Pfizer added stronger warnings to the drug. In doing so, the company stressed that a direct link between Chantix and the reported psychiatric problems has not been established, but could not be ruled out.
DETROIT (AP) -- All major automakers except for General Motors Corp. saw their U.S. sales drop in January to start what industry analysts have predicted will be the worst auto sales year in the United States in more than a decade.
GM, led by strong crossover vehicle sales, reported an increase of 2.6 percent in January when compared with the same month last year.
But Toyota Motor Corp., which had seen strong growth last year, said Friday its January light vehicle sales dropped 2.3 percent, to 171,849 in January from 175,850 in January 2006. Its performance still was strong enough to beat Ford for the No. 2 U.S. sales spot.
SHANGHAI, China (AP) -- Alcoa Inc. and Aluminum Corp. of China jointly acquired 12 percent of the shares of global mining company Rio Tinto PLC in a deal believed to be worth $14.05 billion, the companies said Friday.
It is the largest overseas investment ever by a Chinese company, Aluminum Corp. of China said, and could very well obstruct a bid from Anglo-Australian mining giant BHP Billiton for Rio Tinto.
Alcoa said it contributed $1.2 billion (810 million euros) to the total investment.
WASHINGTON (AP) -- The Federal Reserve said Friday it will provide $60 billion in fresh cash to commercial banks in two auctions in February and will keep holding auctions every other week for as long as needed to ease the credit crisis.
The new auctions, to be held on Feb. 11 and Feb. 25, will mark the fifth and sixth times the Fed has used a new auction process announced in December to provide cash-strapped banks with extra reserves.
LOS ANGELES (AP) -- The Walt Disney Co. said on Friday it signed Chief Executive Robert Iger to a new five-year deal that will pay him a base salary of at least $2 million a year through 2013.
He could also receive $10 million or more each year in bonuses.
In a statement Friday, the Burbank, Calif.-based company s board of directors praised Iger s job performance, noting the executive presided over record revenues, net income and earnings per share.
Iger s previous contract was set to expire Sept. 30, 2010. His new contract runs through Jan. 31, 2013.
By The Associated Press
The Dow Jones industrial average rose 92.83, or 0.73 percent, to 12,743.19 after climbing more than 200 points Thursday.
Broader stock indicators also moved higher. The Standard & Poor s 500 index rose 16.87, or 1.22 percent, to 1,395.42, and the Nasdaq composite index advanced 23.50, or 0.98 percent, to 2,413.36.
Light, sweet crude for March delivery dropped $2.79 to settle at $88.96 a barrel on the New York Mercantile Exchange. In London, Brent crude futures settled $2.77 lower at $89.44 a barrel on the ICE Futures exchange.
Heating oil futures decreased 8.02 cents to settle at $2.4489 a gallon a gallon, while gasoline prices lost 7.38 cents to $2.2834 a gallon.
Natural gas futures declined 33.4 cents to settle at $7.740 per 1,000 cubic feet.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
The surprise offer of $31 per share, made late Thursday and announced Friday, seizes on Yahoo s weakness while Microsoft tries to muscle up in a high-stakes battle with Google likely to define the technology landscape for years to come.
In a statement Friday, Yahoo said it will "carefully and promptly" study Microsoft s bid.
With its profits steadily sliding, Yahoo s stock slipped to a four-year low earlier this week and a new management team has been trying to steer a turnaround but sees more turbulence through 2008.
NEW YORK (AP) -- Wall Street capped a week of big gains with another sizable advance Friday after investors set aside anxiety over news that the economy lost jobs last month and focused on Microsoft Corp. s bid for Internet company Yahoo Inc. and a possible rescue plan for the troubled bond insurance sector.
The Dow Jones industrial average and the Standard & Poor s 500 index each rose more than 4 percent for the week, their steepest gains since March 2003.
Stocks fluctuated at times Friday, however, as investors weighed seemingly contradictory readings on the economy. Wall Street was pleased by Microsoft s $44.6 billion bid for Yahoo. Merger news, which often energizes stocks, has been in short supply for months. But the mix of economic news reminded investors of the continuing fallout from the housing and mortgage crisis.
WASHINGTON (AP) -- In a shower of pink slips, U.S. employers cut jobs last month for the first time in more than four years, the starkest signal yet that the economy is grinding to a halt if it hasn t already toppled into recession.
Conditions are deteriorating, according to the latest employment snapshot by the Labor Department, which showed nervous employers slicing payrolls by 17,000. The country hadn t seen such a nationwide job loss since 2003, when employers were still struggling to recover from the last previous recession.
Job losses were widespread in January. Factories, construction companies, mortgage brokers and real-estate firms were among those eliminating jobs -- casualties of the housing bust and credit crunch. The government cut jobs for the first time since last July.
HOUSTON (AP) -- Beating its own record to rack up the largest annual corporate profit in American history, Exxon Mobil Corp. said Friday it earned $40.6 billion for the year, reaping the benefits of crude-oil prices around $100 a barrel.
Exxon Mobil also topped its own record for profit in a single quarter, posting net income of $11.7 billion for the final three months of the year -- about $1 billion more than the same period in 2005, the previous quarterly record.
Chevron Corp., No. 2 behind Exxon Mobil among U.S. oil companies, also had its best year ever in 2007, saying Friday that it banked a profit of $18.7 billion.
KANSAS CITY, Mo. (AP) -- President Bush pressed Congress to pass an economic rescue package, saying Friday s labor report marking the end of a 52-month streak of national job growth was another "troubling" sign that the economy is sputtering.
Bush toured Hallmark Cards Inc. in the nation s heartland to push a plan of tax rebates for millions of people and tax breaks for companies. The stimulus package, passed by the House, has hit roadblocks in the Senate.
The president spoke just hours after the Labor Department reported that employers cut 17,000 jobs in January -- the first such reduction in more than four years.
NEW YORK (AP) -- Oil prices fell sharply Friday, closing well under $90 a barrel after a string of dismal economic reports renewed worries that a possible U.S. recession could stunt oil demand.
Responding to recent price declines, OPEC said Friday it will maintain current oil output levels.
The week ended with the Labor Department reporting that employers cut 17,000 jobs last month, the first reduction in more than four years and a sign that the economy continues to weaken. Construction spending also fell by a record amount, according to the Commerce Department, reflecting a sharp pullback in residential building.
VIENNA, Austria (AP) -- OPEC decided Friday to keep pumping oil at present levels -- a rebuff to Washington and a possible prelude to cutting production as early as next month if the shaky U.S. economy puts a dent in demand.
The decision was taken despite U.S. urging -- backed by other major consumers -- for more oil on the market to cool prices and relieve inflationary pressures that have contributed to fears of a global economic downturn.
But the 13-nation Organization of Petroleum Exporting Countries would not be swayed from arguments that supplies were adequate and that speculators and geopolitical jitters, not oil availability, were driving the market.
WASHINGTON (AP) -- Government regulators said Friday the connection between Pfizer s anti-smoking drug Chantix and serious psychiatric problems is "increasingly likely."
The Food and Drug Administration said it has received reports of 37 suicides and more than 400 of suicidal behavior in connection with the drug. In November, the agency began investigating reports of depression, agitation and suicidal behavior among patients taking the popular twice-daily pill.
The agency s announcement comes two weeks after Pfizer added stronger warnings to the drug. In doing so, the company stressed that a direct link between Chantix and the reported psychiatric problems has not been established, but could not be ruled out.
DETROIT (AP) -- All major automakers except for General Motors Corp. saw their U.S. sales drop in January to start what industry analysts have predicted will be the worst auto sales year in the United States in more than a decade.
GM, led by strong crossover vehicle sales, reported an increase of 2.6 percent in January when compared with the same month last year.
But Toyota Motor Corp., which had seen strong growth last year, said Friday its January light vehicle sales dropped 2.3 percent, to 171,849 in January from 175,850 in January 2006. Its performance still was strong enough to beat Ford for the No. 2 U.S. sales spot.
SHANGHAI, China (AP) -- Alcoa Inc. and Aluminum Corp. of China jointly acquired 12 percent of the shares of global mining company Rio Tinto PLC in a deal believed to be worth $14.05 billion, the companies said Friday.
It is the largest overseas investment ever by a Chinese company, Aluminum Corp. of China said, and could very well obstruct a bid from Anglo-Australian mining giant BHP Billiton for Rio Tinto.
Alcoa said it contributed $1.2 billion (810 million euros) to the total investment.
WASHINGTON (AP) -- The Federal Reserve said Friday it will provide $60 billion in fresh cash to commercial banks in two auctions in February and will keep holding auctions every other week for as long as needed to ease the credit crisis.
The new auctions, to be held on Feb. 11 and Feb. 25, will mark the fifth and sixth times the Fed has used a new auction process announced in December to provide cash-strapped banks with extra reserves.
LOS ANGELES (AP) -- The Walt Disney Co. said on Friday it signed Chief Executive Robert Iger to a new five-year deal that will pay him a base salary of at least $2 million a year through 2013.
He could also receive $10 million or more each year in bonuses.
In a statement Friday, the Burbank, Calif.-based company s board of directors praised Iger s job performance, noting the executive presided over record revenues, net income and earnings per share.
Iger s previous contract was set to expire Sept. 30, 2010. His new contract runs through Jan. 31, 2013.
By The Associated Press
The Dow Jones industrial average rose 92.83, or 0.73 percent, to 12,743.19 after climbing more than 200 points Thursday.
Broader stock indicators also moved higher. The Standard & Poor s 500 index rose 16.87, or 1.22 percent, to 1,395.42, and the Nasdaq composite index advanced 23.50, or 0.98 percent, to 2,413.36.
Light, sweet crude for March delivery dropped $2.79 to settle at $88.96 a barrel on the New York Mercantile Exchange. In London, Brent crude futures settled $2.77 lower at $89.44 a barrel on the ICE Futures exchange.
Heating oil futures decreased 8.02 cents to settle at $2.4489 a gallon a gallon, while gasoline prices lost 7.38 cents to $2.2834 a gallon.
Natural gas futures declined 33.4 cents to settle at $7.740 per 1,000 cubic feet.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
US, EU unlikely to stop Microsoft deal
WASHINGTON (AP) - U.S. and European antitrust regulators aren t likely to prevent Microsoft from buying Yahoo, analysts said Friday, though scrutiny of the deal could drag on for months.
A major factor weighing in Microsoft Corp. s favor, analysts said, is Google Inc. s dominance in the online search and advertising businesses -- the two areas regulators are likely to focus on when weighing market power issues raised by the nearly $45 billion unsolicited bid.
The Justice Department said it is "interested" in reviewing competition issues raised by Microsoft s surprise offer. The Federal Trade Commission and European Union officials declined to comment. If the deal goes through, analysts expect Congress and European regulators to review the combined company s increased competitive edge.
"I don t see this just sailing through, regulators will look at it," Ted Henneberry of the London law firm Heller Ehrman said. But even after a review that could take up to six months, he said a Microsoft-Yahoo combination isn t likely to be stopped because the new entity s share of the online ad space would still be dwarfed by Google, which already controls nearly 60 percent of the U.S. search market.
"The fact that Google dominates this business will be a big factor in (Microsoft s) favor in trying to get this approved by the regulators," said Keith Hylton, a professor of antitrust law at Boston University.
Alternatively, a combined Yahoo Inc. and Microsoft -- which are the second and third largest U.S. search engines -- could ease concerns about Google s growing power in the ad space. By combining, Microsoft and Yahoo would have a 33 percent share of the U.S. search market, according to the latest data from comScore Media Metrix.
The Federal Trade Commission in December approved Google s $3.1 billion purchase of online advertising company DoubleClick Inc., but European Union regulators are still examining the deal and Google has said it won t go forward without their blessing. (Microsoft lobbied hard against the deal, arguing that it would give Google a dominant position in the online ad market.)
The FTC s OK of the Google-DoubleClick deal surely influenced Microsoft s decision to bid for Yahoo, said Joseph Turow, a professor at the University of Pennsylvania s Annenberg School of Communications who has been critical of the agency and fears that industry consolidation will be bad for consumers.
"Despite the appearance of unlimited choice in the new media environment, people s online activities will be tracked and shaped by a very small number of companies who care far more about surveillance and targeted advertising than the public interest," Turow said.
Marc Rotenberg, executive director of the Electronic Privacy Information Center, agreed and said "the problem of profiling Internet users will become more severe if mergers go forward without appropriate privacy safeguards."
Many Wall Street analysts expect regulators to approve the transaction, which Yahoo said it will "carefully and promptly" study.
Sen. Herb Kohl, D-Wis., chairman of the Senate antitrust subcommittee, said the same issues that prompted lawmakers to review the Google-DoubleClick deal exist in a potential Microsoft-Yahoo combination, including examining how it affects consumers, advertisers and businesses "who increasingly use the Internet for their news, commerce and entertainment."
If Yahoo accepts Microsoft s offer, the subcommittee expects to hold hearings to "explore the competitive and privacy implications of the deal," Kohl said.
A federal judge this week extended by 18 months court oversight of Microsoft s market power, which began in 2002 after a landmark antitrust settlement. Hylton said Justice has been relatively lenient with Microsoft, compared to state attorneys general who pushed for the extension of court oversight of the software giant. Justice officials said the 2002 antitrust settlement had largely served its purpose and should expire.
Shares of Yahoo added $9.20, or 48 percent, to $28.38 Friday, while Microsoft fell $2.15, or 6.6 percent, to $30.45.
AP Writers Christopher S. Rugaber, Michael Liedtke, Jessica Mintz and Aoife White contributed to this report
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
A major factor weighing in Microsoft Corp. s favor, analysts said, is Google Inc. s dominance in the online search and advertising businesses -- the two areas regulators are likely to focus on when weighing market power issues raised by the nearly $45 billion unsolicited bid.
The Justice Department said it is "interested" in reviewing competition issues raised by Microsoft s surprise offer. The Federal Trade Commission and European Union officials declined to comment. If the deal goes through, analysts expect Congress and European regulators to review the combined company s increased competitive edge.
"I don t see this just sailing through, regulators will look at it," Ted Henneberry of the London law firm Heller Ehrman said. But even after a review that could take up to six months, he said a Microsoft-Yahoo combination isn t likely to be stopped because the new entity s share of the online ad space would still be dwarfed by Google, which already controls nearly 60 percent of the U.S. search market.
"The fact that Google dominates this business will be a big factor in (Microsoft s) favor in trying to get this approved by the regulators," said Keith Hylton, a professor of antitrust law at Boston University.
Alternatively, a combined Yahoo Inc. and Microsoft -- which are the second and third largest U.S. search engines -- could ease concerns about Google s growing power in the ad space. By combining, Microsoft and Yahoo would have a 33 percent share of the U.S. search market, according to the latest data from comScore Media Metrix.
The Federal Trade Commission in December approved Google s $3.1 billion purchase of online advertising company DoubleClick Inc., but European Union regulators are still examining the deal and Google has said it won t go forward without their blessing. (Microsoft lobbied hard against the deal, arguing that it would give Google a dominant position in the online ad market.)
The FTC s OK of the Google-DoubleClick deal surely influenced Microsoft s decision to bid for Yahoo, said Joseph Turow, a professor at the University of Pennsylvania s Annenberg School of Communications who has been critical of the agency and fears that industry consolidation will be bad for consumers.
"Despite the appearance of unlimited choice in the new media environment, people s online activities will be tracked and shaped by a very small number of companies who care far more about surveillance and targeted advertising than the public interest," Turow said.
Marc Rotenberg, executive director of the Electronic Privacy Information Center, agreed and said "the problem of profiling Internet users will become more severe if mergers go forward without appropriate privacy safeguards."
Many Wall Street analysts expect regulators to approve the transaction, which Yahoo said it will "carefully and promptly" study.
Sen. Herb Kohl, D-Wis., chairman of the Senate antitrust subcommittee, said the same issues that prompted lawmakers to review the Google-DoubleClick deal exist in a potential Microsoft-Yahoo combination, including examining how it affects consumers, advertisers and businesses "who increasingly use the Internet for their news, commerce and entertainment."
If Yahoo accepts Microsoft s offer, the subcommittee expects to hold hearings to "explore the competitive and privacy implications of the deal," Kohl said.
A federal judge this week extended by 18 months court oversight of Microsoft s market power, which began in 2002 after a landmark antitrust settlement. Hylton said Justice has been relatively lenient with Microsoft, compared to state attorneys general who pushed for the extension of court oversight of the software giant. Justice officials said the 2002 antitrust settlement had largely served its purpose and should expire.
Shares of Yahoo added $9.20, or 48 percent, to $28.38 Friday, while Microsoft fell $2.15, or 6.6 percent, to $30.45.
AP Writers Christopher S. Rugaber, Michael Liedtke, Jessica Mintz and Aoife White contributed to this report
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Metals at a glance
NEW YORK (AP) - The following are key metals settlement prices Friday, compared with late Thursday, on the New York Mercantile Exchange:
April gold $913.50, down $14.50 an ounce
March silver $16.870, down 12.5 cents an ounce
March copper $3.2730, down 2.5 cents a pound
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
April gold $913.50, down $14.50 an ounce
March silver $16.870, down 12.5 cents an ounce
March copper $3.2730, down 2.5 cents a pound
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Business Events for the Coming Week
(AP) - Major business events and economic events scheduled for the coming week (some dates are tentative):
MONDAY, Feb. 4
WASHINGTON -- Commerce Department reports on factory orders for December, 10 a.m.; Treasury bill auction; President Bush s 2009 budget proposal expected to be released.
THE WOODLANDS, Texas -- Anadarko Petroleum Corp. releases fourth-quarter financial results.
DECATUR, Ill. -- Archer Daniels Midland Co. releases second-quarter financial results.
LOUISVILLE, Ky. -- Humana Inc. releases fourth-quarter financial results.
NEW YORK -- News Corp. releases second-quarter financial results.
DUBLIN, Ohio -- Wendy s International Inc. releases fourth-quarter financial results.
LOUISVILLE, Ky. -- Yum Brands Inc. releases fourth-quarter financial results.
PARIS -- French Finance Ministry submits a report on the Societe Generale trading scandal in which more than $73 billion was bet by rogue trader Jerome Kerviel. Investigating judges have filed preliminary charges against Kerviel for forgery, breach of trust and unauthorized computer activity.
TUESDAY, Feb. 5
NEW YORK -- The Institute for Supply Management releases its service sector index, 10 a.m.
NEW YORK -- Avon Products Inc. releases fourth-quarter financial results.
NATICK, Mass. -- Boston Scientific Corp. releases fourth-quarter financial results.
CHICAGO -- Chicago Mercantile Exchange Holdings Inc. releases fourth-quarter financial results.
CHARLOTTE, N.C. -- Duke Energy Corp. releases fourth-quarter financial results.
NEW YORK -- NYSE Euronext Inc. releases fourth-quarter financial results.
PEMBROKE, Bermuda -- Tyco International Ltd. releases first-quarter financial results.
BURBANK, Calif. -- Walt Disney Co. releases first-quarter financial results.
BENTON HARBOR, Mich. -- Whirlpool Corp. releases fourth-quarter financial results.
WEDNESDAY, Feb. 6
WASHINGTON -- Labor Department reports on productivity and costs, fourth quarter, preliminary, 8:30 a.m.
CAMBRIDGE, Mass. -- Biogen Idec Inc. releases fourth-quarter financial results.
PHILADELPHIA -- Cigna Corp. releases fourth-quarter financial results.
SAN JOSE, Calif. -- Cisco Systems Inc. releases second-quarter financial results.
PLANO, Texas -- Electronic Data Systems Corp. releases fourth-quarter financial results.
NEW YORK -- IAC/InterActiveCorp. releases fourth-quarter financial results.
SACRAMENTO, Calif. -- McClatchy Co. releases fourth-quarter financial results.
NEW YORK -- MetLife Inc. releases fourth-quarter financial results.
LOS ANGELES -- Napster Inc. releases third-quarter financial results.
NEWARK, N.J. -- Prudential Financial Inc. releases fourth-quarter financial results.
CHICAGO -- Sara Lee Corp. releases second-quarter financial results.
WALTHAM, Mass. -- Thermo Fisher Scientific Inc. releases fourth-quarter financial results.
NEW YORK -- Time Warner Inc. releases fourth-quarter financial results.
NEW YORK -- Warner Music Group Corp. releases first-quarter financial results.
THURSDAY, Feb. 7
WASHINGTON -- Labor Department reports on weekly jobless claims, 8:30 a.m.; Federal Reserve reports on consumer credit for December, 3 p.m.; Freddie Mac, the mortgage company, reports on mortgage rates.
The nation s retailers release their sales results for January.
HARTFORD, Conn. -- Aetna Inc. releases fourth-quarter financial results.
CHICAGO -- Aon Corp. releases fourth-quarter financial results.
FORT LAUDERDALE, Fla. -- AutoNation Inc. releases fourth-quarter financial results.
FORT WORTH, Texas -- D.R. Horton Inc. releases first-quarter financial results.
MEMPHIS, Tenn. -- International Paper Co. releases fourth-quarter financial results.
PURCHASE, N.Y. -- PepsiCo Inc. releases fourth-quarter financial results.
WINSTON-SALEM, N.C. -- Reynolds American Inc. releases fourth-quarter financial results.
STAMFORD, Conn. -- Thomson Corp. releases fourth-quarter financial results.
FRIDAY, Feb. 8
FEDERAL WAY, Wash. -- Weyerhaeuser Co. releases fourth-quarter financial results.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
MONDAY, Feb. 4
WASHINGTON -- Commerce Department reports on factory orders for December, 10 a.m.; Treasury bill auction; President Bush s 2009 budget proposal expected to be released.
THE WOODLANDS, Texas -- Anadarko Petroleum Corp. releases fourth-quarter financial results.
DECATUR, Ill. -- Archer Daniels Midland Co. releases second-quarter financial results.
LOUISVILLE, Ky. -- Humana Inc. releases fourth-quarter financial results.
NEW YORK -- News Corp. releases second-quarter financial results.
DUBLIN, Ohio -- Wendy s International Inc. releases fourth-quarter financial results.
LOUISVILLE, Ky. -- Yum Brands Inc. releases fourth-quarter financial results.
PARIS -- French Finance Ministry submits a report on the Societe Generale trading scandal in which more than $73 billion was bet by rogue trader Jerome Kerviel. Investigating judges have filed preliminary charges against Kerviel for forgery, breach of trust and unauthorized computer activity.
TUESDAY, Feb. 5
NEW YORK -- The Institute for Supply Management releases its service sector index, 10 a.m.
NEW YORK -- Avon Products Inc. releases fourth-quarter financial results.
NATICK, Mass. -- Boston Scientific Corp. releases fourth-quarter financial results.
CHICAGO -- Chicago Mercantile Exchange Holdings Inc. releases fourth-quarter financial results.
CHARLOTTE, N.C. -- Duke Energy Corp. releases fourth-quarter financial results.
NEW YORK -- NYSE Euronext Inc. releases fourth-quarter financial results.
PEMBROKE, Bermuda -- Tyco International Ltd. releases first-quarter financial results.
BURBANK, Calif. -- Walt Disney Co. releases first-quarter financial results.
BENTON HARBOR, Mich. -- Whirlpool Corp. releases fourth-quarter financial results.
WEDNESDAY, Feb. 6
WASHINGTON -- Labor Department reports on productivity and costs, fourth quarter, preliminary, 8:30 a.m.
CAMBRIDGE, Mass. -- Biogen Idec Inc. releases fourth-quarter financial results.
PHILADELPHIA -- Cigna Corp. releases fourth-quarter financial results.
SAN JOSE, Calif. -- Cisco Systems Inc. releases second-quarter financial results.
PLANO, Texas -- Electronic Data Systems Corp. releases fourth-quarter financial results.
NEW YORK -- IAC/InterActiveCorp. releases fourth-quarter financial results.
SACRAMENTO, Calif. -- McClatchy Co. releases fourth-quarter financial results.
NEW YORK -- MetLife Inc. releases fourth-quarter financial results.
LOS ANGELES -- Napster Inc. releases third-quarter financial results.
NEWARK, N.J. -- Prudential Financial Inc. releases fourth-quarter financial results.
CHICAGO -- Sara Lee Corp. releases second-quarter financial results.
WALTHAM, Mass. -- Thermo Fisher Scientific Inc. releases fourth-quarter financial results.
NEW YORK -- Time Warner Inc. releases fourth-quarter financial results.
NEW YORK -- Warner Music Group Corp. releases first-quarter financial results.
THURSDAY, Feb. 7
WASHINGTON -- Labor Department reports on weekly jobless claims, 8:30 a.m.; Federal Reserve reports on consumer credit for December, 3 p.m.; Freddie Mac, the mortgage company, reports on mortgage rates.
The nation s retailers release their sales results for January.
HARTFORD, Conn. -- Aetna Inc. releases fourth-quarter financial results.
CHICAGO -- Aon Corp. releases fourth-quarter financial results.
FORT LAUDERDALE, Fla. -- AutoNation Inc. releases fourth-quarter financial results.
FORT WORTH, Texas -- D.R. Horton Inc. releases first-quarter financial results.
MEMPHIS, Tenn. -- International Paper Co. releases fourth-quarter financial results.
PURCHASE, N.Y. -- PepsiCo Inc. releases fourth-quarter financial results.
WINSTON-SALEM, N.C. -- Reynolds American Inc. releases fourth-quarter financial results.
STAMFORD, Conn. -- Thomson Corp. releases fourth-quarter financial results.
FRIDAY, Feb. 8
FEDERAL WAY, Wash. -- Weyerhaeuser Co. releases fourth-quarter financial results.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Employment drops in a pink slip blizzard
WASHINGTON (AP) - In a shower of pink slips, U.S. employers cut jobs last month for the first time in more than four years, the starkest signal yet that the economy is grinding to a halt if it hasn t already toppled into recession.
Conditions are deteriorating, according to the most up-to-date employment snapshot by the Labor Department, which showed nervous employers slicing payrolls by 17,000. The country hasn t seen such a nationwide job loss since 2003, when employers were still struggling to recover from the last previous recession.
"We are certainly on thin ice," said John Silvia, chief economist at Wachovia. And even President Bush, normally a cheerleader for the economy, said there were "serious signs" it was weakening.
Wall Street, however, took the news in stride. Stock prices were up near the close of the trading day.
Job losses were widespread in January. Factories, construction companies, mortgage brokers and real-estate firms were among those eliminating jobs -- casualties of the housing bust and credit crunch. The government cut jobs for the first time since last July.
All those cuts swamped job gains in education, health care, retailing and elsewhere.
The unemployment rate actually dipped slightly to 4.9 percent, from 5 percent in December, as people left the labor force.
"Discouraged by a sluggish job market, many more adults are sitting on the sidelines," said Peter Morici, an economist and business professor at the University of Maryland.
Wage growth also slowed, another indication of belt-tightening. Smaller wage gains could make people who still have jobs -- already squeezed by high energy prices -- reluctant to spend, further hurting the economy.
President Bush prodded Congress anew to quickly pass an economic rescue package.
"There s serious signs that ... the economy is weakening and that we ve got to do something about it," Bush said. On Capitol Hill, Democratic and Republican supporters of a stimulus package -- including tax rebates for people and tax breaks for businesses -- agreed the gloomy employment report underscored a need for urgency. The package is pending in the Senate, where there are disputes over attempts to expand it.
The Democratic presidential contenders, Sens. Hillary Rodham Clinton of New York and Barack Obama of Illinois, said the job losses were evidence of failed Bush policies. "We are sliding into a second Bush recession," Clinton said. Obama called the employment figures "troubling news" and urged Congress to extend unemployment benefits "for more time and to more people."
To help ease the credit crisis, the Federal Reserve announced it would provide cash-strapped banks with an additional $60 billion in short-term loans through auctions later this month. The Fed started the auctions in December and has already provided $100 billion in loans to banks.
With fears of recession growing, the Fed has gotten much more aggressive -- ordering two big interest rate reductions in just over a week. A severely depressed housing market, hard-to-get credit, turbulence on Wall Street and "some softening in labor markets" were cited by the Fed when it lowered rates by a bold half-point on Wednesday. The weak employment report would justify additional rate cuts, economists said.
The health of the nation s job market is a critical factor shaping how the overall economy fares. If companies continue to cut back on hiring and put a lid on wages, that will spell more trouble.
People running companies are concerned.
"They are thinking if there is some capital spending I should postpone for a while, I should do that. If there is some hiring I don t necessarily need to do right now, I can put that off for a few months to see what happens," said Joel Naroff, president of Naroff Economic Advisors. "The problem with that thinking is that more economic weakness or a recession can become somewhat of a self-fulfilling prophecy."
Average hourly earnings for jobholders rose to $17.75 in January, a 0.2 percent increase from the previous month. It was half the pace logged in December. Over the past 12 months wages went up by 3.7 percent. With high energy and food prices, though, workers may feel like their paychecks aren t stretching as far.
The unemployment rate had shot up in December to 5 percent, from 4.7 percent in November. The magnitude of that increase -- something not seen since right after the September 2001 terror attacks -- set off alarms. In the past, such a big increase has signaled the economy was starting a recession or already in one.
With economic growth slowing this year, the unemployment rate will climb again. In fact, Mark Zandi, chief economist at Economy.com, predicts the jobless rate will rise to near 6.5 percent in early 2009.
The 17,000 drop was in total payrolls -- both government and private employers -- in January, the first monthly decline since August 2003. The government sliced 18,000 positions, while private employers added just 1,000, the fewest in nearly a year.
The government on Friday also released annual revisions -- based on more complete information -- that showed job creation was even weaker last year than initially thought.
The economy added an average of just 95,000 jobs per month in 2007, versus an earlier estimate of 111,000 a month. In 2006, payroll employment grew by an average of 175,000 a month.
Construction and factory workers have been especially hard hit by the meltdown in housing, which has catapulted home foreclosures to record highs. Construction companies cut 27,000 jobs last month and have lost 284,000 since employment peaked in September 2006. Spending by private builders on housing projects last year plunged by a record 18.3 percent, the Commerce Department said in a separate report.
Factories eliminated 28,000 positions in January, and have cut 269,000 jobs over the past 12 months. Manufacturing activity gained some ground in January, after contracting in December, the Institute for Supply Management said in still another report Friday.
The economy nearly stalled in the final three months of last year, and some economists believe it may actually be shrinking now.
Under one rough rule, the economy would have to contract for six months for the country to be considered in a recession. The likelihood of a recession has risen sharply over the past year, and analysts increasingly believe the U.S. will be in one during the first half of 2008. The worry is that people and businesses will hunker down and pull back their spending, sending the economy into a tailspin.
Bush said, "We re just in a rough patch. And, I m confident we can get through this rough patch."
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
Conditions are deteriorating, according to the most up-to-date employment snapshot by the Labor Department, which showed nervous employers slicing payrolls by 17,000. The country hasn t seen such a nationwide job loss since 2003, when employers were still struggling to recover from the last previous recession.
"We are certainly on thin ice," said John Silvia, chief economist at Wachovia. And even President Bush, normally a cheerleader for the economy, said there were "serious signs" it was weakening.
Wall Street, however, took the news in stride. Stock prices were up near the close of the trading day.
Job losses were widespread in January. Factories, construction companies, mortgage brokers and real-estate firms were among those eliminating jobs -- casualties of the housing bust and credit crunch. The government cut jobs for the first time since last July.
All those cuts swamped job gains in education, health care, retailing and elsewhere.
The unemployment rate actually dipped slightly to 4.9 percent, from 5 percent in December, as people left the labor force.
"Discouraged by a sluggish job market, many more adults are sitting on the sidelines," said Peter Morici, an economist and business professor at the University of Maryland.
Wage growth also slowed, another indication of belt-tightening. Smaller wage gains could make people who still have jobs -- already squeezed by high energy prices -- reluctant to spend, further hurting the economy.
President Bush prodded Congress anew to quickly pass an economic rescue package.
"There s serious signs that ... the economy is weakening and that we ve got to do something about it," Bush said. On Capitol Hill, Democratic and Republican supporters of a stimulus package -- including tax rebates for people and tax breaks for businesses -- agreed the gloomy employment report underscored a need for urgency. The package is pending in the Senate, where there are disputes over attempts to expand it.
The Democratic presidential contenders, Sens. Hillary Rodham Clinton of New York and Barack Obama of Illinois, said the job losses were evidence of failed Bush policies. "We are sliding into a second Bush recession," Clinton said. Obama called the employment figures "troubling news" and urged Congress to extend unemployment benefits "for more time and to more people."
To help ease the credit crisis, the Federal Reserve announced it would provide cash-strapped banks with an additional $60 billion in short-term loans through auctions later this month. The Fed started the auctions in December and has already provided $100 billion in loans to banks.
With fears of recession growing, the Fed has gotten much more aggressive -- ordering two big interest rate reductions in just over a week. A severely depressed housing market, hard-to-get credit, turbulence on Wall Street and "some softening in labor markets" were cited by the Fed when it lowered rates by a bold half-point on Wednesday. The weak employment report would justify additional rate cuts, economists said.
The health of the nation s job market is a critical factor shaping how the overall economy fares. If companies continue to cut back on hiring and put a lid on wages, that will spell more trouble.
People running companies are concerned.
"They are thinking if there is some capital spending I should postpone for a while, I should do that. If there is some hiring I don t necessarily need to do right now, I can put that off for a few months to see what happens," said Joel Naroff, president of Naroff Economic Advisors. "The problem with that thinking is that more economic weakness or a recession can become somewhat of a self-fulfilling prophecy."
Average hourly earnings for jobholders rose to $17.75 in January, a 0.2 percent increase from the previous month. It was half the pace logged in December. Over the past 12 months wages went up by 3.7 percent. With high energy and food prices, though, workers may feel like their paychecks aren t stretching as far.
The unemployment rate had shot up in December to 5 percent, from 4.7 percent in November. The magnitude of that increase -- something not seen since right after the September 2001 terror attacks -- set off alarms. In the past, such a big increase has signaled the economy was starting a recession or already in one.
With economic growth slowing this year, the unemployment rate will climb again. In fact, Mark Zandi, chief economist at Economy.com, predicts the jobless rate will rise to near 6.5 percent in early 2009.
The 17,000 drop was in total payrolls -- both government and private employers -- in January, the first monthly decline since August 2003. The government sliced 18,000 positions, while private employers added just 1,000, the fewest in nearly a year.
The government on Friday also released annual revisions -- based on more complete information -- that showed job creation was even weaker last year than initially thought.
The economy added an average of just 95,000 jobs per month in 2007, versus an earlier estimate of 111,000 a month. In 2006, payroll employment grew by an average of 175,000 a month.
Construction and factory workers have been especially hard hit by the meltdown in housing, which has catapulted home foreclosures to record highs. Construction companies cut 27,000 jobs last month and have lost 284,000 since employment peaked in September 2006. Spending by private builders on housing projects last year plunged by a record 18.3 percent, the Commerce Department said in a separate report.
Factories eliminated 28,000 positions in January, and have cut 269,000 jobs over the past 12 months. Manufacturing activity gained some ground in January, after contracting in December, the Institute for Supply Management said in still another report Friday.
The economy nearly stalled in the final three months of last year, and some economists believe it may actually be shrinking now.
Under one rough rule, the economy would have to contract for six months for the country to be considered in a recession. The likelihood of a recession has risen sharply over the past year, and analysts increasingly believe the U.S. will be in one during the first half of 2008. The worry is that people and businesses will hunker down and pull back their spending, sending the economy into a tailspin.
Bush said, "We re just in a rough patch. And, I m confident we can get through this rough patch."
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. MMMM
*ALERT: CHRYSLER NA-MADE US LT TRUCK SLS 91,629 JAN; 119,803 YR AGO
*ALERT: CHRYSLER NA-MADE US LT TRUCK SLS 91,629 JAN; 119,803 YR AGO
Copyright 2007 MNI. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. n MMMM
Copyright 2007 MNI. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. n MMMM
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