Early Edition September 02 2008 at 05:25 AM Chi-Chu Tschang and Harry Maurer
Hurricane Gustav weakens, oil markets drop
Hurricane Gustav caused less damage than was expected when it touched down on Louisiana's coastline, prompting relief in global oil markets as state and federal officials tried to avoid the mistakes made during hurricane Katrina three years ago. Gustav, which prompted almost 2 million people to leave coastal areas and shutdown the region's offshore oil production, weakened to a category two level tropical storm.
The weakened storm bolstered thin U.S. holiday trading. U.S. crude oil reached an intraday low of $110.60 a barrel, down 25% from July's record high of $147.27. By the end of trading, the price had fallen $4.37 day-on-day to $111.09.
Source: Financial Times
Alcatel-Lucent chooses Verwaayen as new CEO
Alcatel-Lucent, the world's largest supplier of fixed-line phone networks, selected former BT Group Chief Executive Officer Ben Verwaayen to run the company as it seeks to end six straight quarters of losses. Philippe Camus, co-managing partner of Lagardere, will serve as non-executive chairman of the Paris-based company, which has posted $7 billion in losses since its creation through the merger of Alcatel and Lucent Technologies.
Source: Blomberg
U.S. manufacturing remains flat
The U.S. manufacturing sector likely remained flat for the second straight month in August due to the ongoing housing slump and tight credit conditions, which impacted the business environment. The Institute for Supply Management's widely followed index on national factory activity likely held at 50.0 in August, a reading that neither shows expansion nor contraction in the sector, according to analysts.
Source: Reuters
Korean Development Bank to invest in Lehman Brothers
Korea Development Bank on Sept. 2 said it's in talks to invest in Lehman Brothers, ending weeks of speculation about the state-run lender's intentions. Chief Executive Min Euoo Seung said KDB is in talks with domestic banks to form a consortium that will invest in Lehman Brothers, adding there are differences over the investment price for Lehman.
Source: Wall Street Journal
Fed official says institutions should be allowed to fail
The President of the Federal Reserve Bank of Kansas City Thomas Hoenig said on Sept. 1 that for economies to work best, institutions must be allowed to fail. During a speech in Buenos Aires, Hoening said economies must "find a balance between financial stability and a stable price environment and in doing so must be able to allow individual institutions to fail."
Source: New York Times
Booming market for old version of iPhones
Within days of the iPhone 3G launch, demand for used, older iPhone models began rising, and prices began a steady climb. As of Aug. 26, companies were paying $200 and $300 respectively for gently-used, 8-Gigabyte and 16-GB original iPhone models. That's up $50 from what the market paid a month earlier -- and at the high end, on par with the price of a new 16-GB version of iPhone 3G-for the latest iteration of the iPhone, with more features and faster download speeds.
Source: BusinessWeek
Google launches its own Internet browser
Google is to release its own Internet browser in its most direct attack yet on Microsoft's dominance of PC software. The launch of the browser -- known as Google Chrome -- will pit the Internet company against Microsoft's dominant Internet Explorer browser, which is used by an estimated three-quarters of all internet users. A test version of Google's browser will be released in 100 countries on Sept. 2.
Source: Financial Times
France's GDF Suez buys U.S. electricity firm
French energy giant GDF Suez said on Sept. 2 it would buy U.S. electricity provider FirstLight Power Enterprises in a deal estimated to be worth $1.91 billion. In an interview published in French newspaper Le Figaro on Sept. 2, GDF Suez Chairman Gerard Mestrallet said the deal would make GDF Suez the third-largest supplier of electricity to businesses in the United States.
Source: Reuters
Hedge funds face tough times
Some of the world's biggest hedge funds are having a bad year, and the flood of new money going into funds has slowed. That's pressuring an industry bracing for investor withdrawals and worrying about how to survive without lucrative performance fees. Some investors willing to put new money in funds are even beginning to ask about better terms -- a contrast to just last year, when investors needed to beg to get into hot funds.
Source: Wall Street Journal
Spielberg nears deal with India's Reliance Communications
Steven Spielberg, Hollywood's most powerful director, is meeting in New York with -- and will likely announce a deal with -- India's Reliance Communications to restart the DreamWorks studio that he's relocating from Paramount Pictures in an acrimonious split. Spielberg is meeting with Anil Ambani, the billionaire chairman of Reliance Communications, to finalize what's expected to be up to a $1.2 billion deal that would make the Indian conglomerate a 50% owner of Spielberg's new studio.
Source: BusinessWeek
Summer movie blockbusters rack in big bucks
Higher movie ticket prices and a Batman sequel delivered near-record revenue to the major studios despite fewer people heading to the movies this year compared to 2007. According to Media by Numbers, attendance fell 4% to 586.6 million moviegoers, but domestic ticket sales still totaled an estimated $4.2 billion, up from last year's $4.18 billion.
Source: New York Times
Conversation of the Day: Moms Who Opt Out
Reader Ajj Writes: "I am an MBA mom and I have lots of friends in the same position. We spend our time fund-raising to improve schools, leading scout troops, volunteering in the classroom, chaperoning field trips, and driving 'working parent's' kids to after-school activities."
Tell Us: Is an MBA Good Prep for Parenting?
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