Tuesday, May 29, 2007
ENERGY
Nigerian Oil Workers End Strike
Crude oil prices fell after oil workers in Nigeria ended a strike after two days.
Crude oil for July delivery fell 69 cents, to $64.51 a barrel, in electronic trading on the New York Mercantile Exchange. The exchange was closed for regular trading for Memorial Day.
Malaysia Plans Oil PipelineMalaysia plans a $7 billion pipeline to divert up to a third of oil now being carried through the Malacca Strait, helping ensure a secure supply from the Middle East to East Asia. The strait has been notorious for robberies and hijackings. Work on the pipeline is to begin next year and finish in 2014.
India Says It Needs More PowerIndia must build hundreds of power plants over the next five years to end electricity shortages that threaten economic growth, Prime Minister Manmohan Singh said.
During peak hours, demand outstrips supply by as much as 25 percent in some parts of the country, causing frequent outages and forcing factories and businesses to shut down.
By 2012, India will need to generate at least 200,000 megawatts of power to eliminate any shortage, Singh said. The country has a capacity of 130,000 megawatts.
CANADACentral Bank to Decide on Rate
Analysts expect the Bank of Canada to hold its key interest rate at 4.25 percent when it meets today. Some economists, though, said the central bank may alter the wording on its statement to indicate that an increase is coming, possibly as soon as July.
Higher prices for oil and other commodities have pushed up consumer spending and home prices, threatening higher inflation. Interest rates will stay on hold for now because the currency's rise to a 30-year high has curbed exports and lowered prices on imported goods, economists said.
AUTOMOTIVEToyota Is Conservative on Sales
Toyota's sales in North America will increase far more than what the company predicts for the year ending March 31, auto-industry analysts said.
The company's prediction of 1.6 percent sales growth, compared with 15 percent the previous year, is too modest, said Yasuhiro Matsumoto, an analyst at Shinsei Securities in Tokyo. He predicted a 9 percent increase. Kurt Sanger, a Macquarie Securities analyst, said sales may rise 5 percent.
Toyota's forecast "assumes everything goes wrong," said Edwin C. Merner, president of Atlantis Investment Research in Tokyo.
"We can't take anything for granted," said Paul Nolasco, a Toyota spokesman.
LEGALFosamax Lawsuit Filed in Canada
Merck was accused in a Canadian lawsuit of failing to warn consumers that its drug Fosamax may damage jawbones, the Canadian law firm Siskinds said.
Fosamax was approved for sale in Canada in 1995 to treat osteoporosis. Use of the drug has been linked to an increased risk of developing osteonecrosis, Siskinds said.
The plaintiffs, who are seeking class-action status, are seeking $926,000 and medical costs for each person who was prescribed Fosamax. They're also seeking $18.5 million in punitive damages.
MERGERS & ACQUISITIONSURS to Buy Idaho Building Firm
URS, a San Francisco engineering and construction company, agreed to buy competitor Washington Group International of Boise, Idaho, for about $2.6 billion in cash and stock.
The combination would create a major global builder of fossil-fuel and nuclear power plants. It also would be one of the top five technical service suppliers to the Defense Department, the companies said. Washington Group originally was known as Morrison Knudsen and built the Hoover Dam, the San Francisco Bay Bridge and other public projects.
Xstrata Extends Offer for LionOreNickel ore producer Xstrata extended its offer to acquire LionOre Mining International until June 7 but did not change any other terms. The Swiss company offered about $3.7 billion, or $17.13 a share, on March 26 and increased its bid to $23.25 a share May 15. LionOre directors, who originally endorsed Xstrata's offer, said on Thursday that a $25.46-a-share bid by Norilsk Nickel of Russia was superior and that Xstrata had until June 1 to match or exceed it.
PERUBond Sale Planned to Cover Debt
Finance Minister Luis Carranza said Peru will seek to sell 30-year bonds this year to finance the repayment of its debt with the Paris Club, the informal group of financial officials representing the world's wealthiest nations. The Paris Club last week accepted Peru's proposal make an early repayment of its $2.55 billion debt.
COMPENSATIONLenovo CFO to Earn $428,000
Lenovo, the world's third-largest maker of personal computers, said it will pay newly appointed chief financial officer Wong Wai Ming an annual salary of $428,000.
Wong, who will replace Mary Ma on July 15, may also receive a performance bonus of as much as $472,000 and shares worth as much as $800,000 a year.
Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.
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