Late Edition January 05 2009 at 03:00 PM Harry Maurer
A Health Report from Steve Jobs
Investors have been fretting for months about Apple CEO Steve Jobs' health, so today he admitted that there was reason for concern and tried to lay those concerns to rest. Jobs said he has been diagnosed as suffering a "hormone imbalance" that was causing him to lose weight. Jobs regretted that his decision not to address the annual MacWorld conference "set off another flurry of rumors about my health."
Jobs said doctors had decided his weight loss did not stem from a recurrence of cancer but from an imbalance that depletes proteins in his body. "The remedy for this treatment is relatively simple and straightforward, and I've already begun treatment," he added. Apple shares jumped 3% on the news and were up nearly 6% around 2:30 p.m.
Source: New York Times
Another Awful Month for Carmakers
Most automakers reported their December U.S. sales, and the results were predictably grim. General Motors sales dropped 31% for the month, and its total sales for 2008 were the lowest in 49 years. Toyota December sales sank 37%, Honda 35%, Ford 32%, and Nissan 31%. Chrysler is scheduled to report later today.
Source: Bloomberg
Russia Trims Gas Deliveries to Europe
Ratcheting up the stakes in a dispute over natural gas prices, Russian Prime Minister Vladimir Putin announced cuts in gas intended for Europe that is pumped through Ukraine. Putin said the cuts were to compensate for gas that Ukraine is "stealing." Russian gas monopoly OAO Gazprom cut off sales to Ukraine on Jan. 1 after the two nations failed to agree on prices for 2009. So far, supply disruptions in Europe have been modest because it has ample reserves.
Source: Bloomberg
Tyson Foods CEO Quits
In a surprise announcement, the big meats producer said that CEO Dick Bond has stepped down. A spokesman for the board declined to comment on whether Bond had been asked to leave. His departure comes amidst a slump in the chicken industry, with Tyson's profit down 68% for the last fiscal year. Bond will be replaced on an interim basis by Leland Tollett, former chairman and CEO. Shares were down more than 7% in midafternoon trading.
Source: CNNMoney.com
Citgo Suspends Heating Oil Aid Program
Sliding oil prices appear to have cost Venezuela's Hugo Chavez a cherished propaganda opportunity. Houston-based Citgo, the U.S. fuels and refining unit of Venezuela's state oil company, PDVSA, said it would suspend discounted sales of heating oil to poor communities in the U.S. Citgo said in 2007 that it was selling heating oil at a 40% discount in 23 states and had spent $147 million on the aid program. But now, "falling oil prices and the world economic crisis" have forced the company to shut the program down.
Source: Reuters
A Big Tax Cut from Obama?
Advisers to President-elect Barack Obama say he plans to unveil a package of tax cuts for individuals and businesses worth about $300 billion in an attempt to goose the faltering economy. The tax breaks, which are larger than anticipated, could account for about 40% of the planned economic stimulus package of up to $775 billion Obama hopes to pass soon after he takes office. A major component of the deal would see tax relief of $500 for working individuals and $1000 for working families under the "Making Work Pay" proposal he outlined during his campaign. While in Washington this week, Obama hopes to build consensus for 'radical reforms' for tighter control over fiscal spending.
Source: Wall Street Journal, New York Times
Asian Stock Rally Extends to Eighth Day
Asian stocks advanced for the eighth day in a row, making their longest winning streak since August 2004, with a rally led by Tokyo which saw the Nikkei 225 Stock Index climb 2.1% on its first day of trading for the year. The MSCI Asia-Pacific Index has gained 5.3% in the past eight sessions, clawing back some of the 43% it lost last year.
Source: Bloomberg
Richardson Dropped from Obama's Cabinet Lineup
New Mexico Gov. Bill Richardson has withdrawn his nomination to be President-elect Barack Obama's Commerce Secretary amid a grand jury investigation into how a corporate political donor to his campaign won a lucrative state contract in New Mexico.
Source: Associated Press
Soros, Dell and Others Team up to Buy IndyMac
Billionaire George Soros, Michael Dell and buyout specialist J.C. Flowers are teaming up to pay $1.3 billion for failed mortgage lender IndyMac Bank, while the Federal Deposit Insurance Corp will share the burden of loan losses with the new owners. FDIC is expected to lose up to $9.4 billion.
Source: CNN Money
Netbook Powered by Freescale Chip Could Sell below $200
A new silicon chip that Freescale Semiconductor plans to unveil at the Las Vegas Consumer Electronics Show this week could enable Netbooks makers powered by it to retail for less than $200, the company said.
Source: CNET
Conversation of the Day: Obama's Education Stimulus
Reader Damian Bebell writes: "One problem: Our children have fully embraced the opportunities afforded by computer-based technologies-whereas traditional school environments have not."
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