AP News, May 1st, 2007
The top business news from The Associated Press for the morning of Tuesday, May 1, 2007:
Ford Exec Foresees Smaller Engines
DEARBORN, Mich. (AP) _ Susan Cischke admits that her vision is a little fuzzy when she looks more than two decades into the future, but she still sees an internal combustion engine, albeit one smaller, lighter and more fuel-efficient than the engines of today. And although the future is a bit cloudy to her and everyone else in the auto business, what Cischke sees could largely determine the future of her struggling employer, Ford Motor Co.
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Stocks Head for Moderately Higher Open
NEW YORK (AP) _ U.S. stocks headed for a moderately higher open Tuesday as investors awaited a reading on the nation's manufacturing sector to determine how much the economy might be slowing and whether stronger-than-expected growth in corporate profits is poised to continue. After a strong April, in which the Dow Jones industrials crossed 13,000 for the first time, investors will be looking to economic data as well as a series of important profit reports as they try to size up how stocks might fare in May.
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Circuit City Expects 1Q Loss
RICHMOND, Va. (AP) _ Circuit City Stores Inc., which has laid off workers and closed stores in an effort to cut costs, says it expects to post a first-quarter loss because of poor big-screen TV sales and is withdrawing its earnings outlook for the first half of the fiscal year. The electronics and entertainment retailer said it now expects a loss from continuing operations before income taxes of $80 million to $90 million for the first quarter of its 2008 fiscal year because of "substantially below-plan sales," especially of large flat-panel and projection televisions.
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Oil Prices Drop in Asian Trading
SINGAPORE (AP) _ Oil prices fell in Asian trading Tuesday, extended their slide from the previous day on worries of a glut of oil building up in the supply chain for refineries. Analysts attribute some of Monday and Tuesday's fall in oil prices to profit-taking from Friday's big rally, when crude surged above $66 a barrel after Saudi Arabia announced the arrests of 172 Islamic militants, some of whom allegedly planned to attack oil fields.
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German Exchange to Buy ISE for $2.8B
NEW YORK (AP) _ With stock options trading now one of the world's fastest growing markets, Deutsche Boerse AG's pact to buy International Securities Exchange Holdings Inc. for $2.8 billion could lead to more deals _ and perhaps a rival bid for the second-largest U.S. options exchange. The German stock exchange on Monday announced the $2.8 billion acquisition of New York-based ISE, a deal that will create the world's top options market, rivaling U.S. players like the Chicago Board Options Exchange and Chicago Mercantile Exchange.
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Group: Wal-Mart Violates Workers' Rights
NEW YORK _ Wal-Mart's exploitation of weak U.S. labor laws interferes with workers' rights to organize and violates the human rights of its employees, according to a report by Human Rights Watch, an independent nongovernment organization. In a 210-page report released Monday, Human Rights Watch said Wal-Mart uses an arsenal of sophisticated tactics _ some of which it says are illegal_ aimed at thwarting union organization and creating a climate of fear for its 1.3 million U.S. workers.
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Court Favors Microsoft in Patent Fight
WASHINGTON (AP) _ The Supreme Court sided with Microsoft Corp. on Monday, finding that U.S. patent law doesn't apply to software sent to foreign countries. In a 7-1 decision, the court rejected AT&T's position that it is entitled to damages for every Windows-based computer manufactured outside the United States using technology that compresses speech into computer code.
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Verizon's 1Q Earnings Fall 8.4 Percent
NEW YORK (AP) _ Verizon Communications Inc.'s first-quarter earnings fell 8.4 percent to $1.5 billion as strong showings in the cell phone business and the crucial FiOS Internet and TV initiative were offset by the loss of income from assets the company sold over the past year. The profit reported Monday also was hurt by a larger-than-expected loss of traditional telephone customers to cable TV companies and other rival providers, but the bottom line edged most Wall Street forecasts.
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Spending Sluggish Amid High Energy Costs
WASHINGTON (AP) _ Consumer spending rose at the weakest pace in five months in March as a surge in gasoline prices left shoppers with little left over for other items. The Commerce Department reported Monday that consumer spending on all items was up 0.3 percent last month, the slowest increase since a similar rise in October. That lackluster gain came even though personal incomes rose by a healthy 0.7 percent last month.
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Delta Waves Goodbye to Bankruptcy
ATLANTA (AP) _ Delta Air Lines Inc. waved farewell to bankruptcy protection Monday and put down a welcome mat for a redesigned logo after surviving a hostile takeover bid during a 19 1/2-month reorganization that saw it shed billions in costs. The board of directors of the Atlanta-based company will now turn its attention to picking a new leader to replace outgoing Chief Executive Gerald Grinstein and deciding whether to sell or spin off regional feeder carrier Comair.
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Gold Prices
LONDON (AP) _ Gold bullion opened Tuesday at a bid price of $678.50 a troy ounce, down from $680.30 late Monday.___
Japan Markets
TOKYO (AP) _ Japanese stocks fell in thin trading Tuesday as traders took their cues from Wall Street where stocks sank overnight.
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Dollar-Yen
TOKYO (AP) _ The euro hit a record high of 163.31 yen on Tuesday amid expectations the European Central Bank will continue to tighten monetary policy while the Bank of Japan moves slowly on raising interest rates.
A service of The Associated Press. Copyright 2007 All rights reserved.
