Thread: Business News

Northwest Airlines net loss widens
CHICAGO - Bankrupt Northwest Airlines Corp. (Other OTC:NWACQ - news) on Monday posted a wider quarterly net loss, but said that excluding costs related to its reorganization, it saw a profit. The carrier, which filed for bankruptcy protection in September, said its second-quarter net loss amounted to $285 million, or $3.27 per share, compared with $234 million or $2.69 per share a year earlier. The carrier said its operating revenue increased 3 percent to $3.3 billion. "Our second-quarter results demonstrate that we are making steady progress on our restructuring goals, which is reflected in our year-over-year cost and revenue performance improvements," Chief Executive Doug Steenland said in a statement.
http://news.yahoo.com/s/nm/20060807/...est_earns_dc_4

Krispy Kreme to open first shop in Chinese-speaking world
HONG KONG — Doughnut maker Krispy Kreme plans to begin dipping into the massive Chinese-speaking market Tuesday, opening a shop in Hong Kong — China's richest city. The 2,000-square foot shop tucked in a side street in the busy Causeway Bay shopping district marks Krispy Kreme's debut on Chinese soil and only its second foray into East Asia. So far, Krispy Kreme has nine shops in South Korea, but it's expanding aggressively in other parts of the region. Other than Hong Kong, the company has signed franchise deals with groups in Japan, the Philippines and Indonesia that plan to open stores by the end of the year. There are already more than 20 stores in Sydney, Australia. It's also signed up a franchisee in the Middle East.
http://www.usatoday.com/money/indust...hongkong_x.htm

Time to Dump Your AmEx Card?
AMERICAN EXPRESS'S ANNOUNCEMENT last week that they would increase the fees on most of their Green and Gold charge cards — while reducing some popular membership rewards benefits like double points on everyday purchases — hasn't resulted in a rousing cheer from card holders.
http://foxnews.smartmoney.com/consum...story=20060807

Chain store sales up in latest week:
NEW YORK - U.S. chain store sales rose in the first week of August, helped by back-to-school tax holidays in some states and summer clearance sales, a report showed on Tuesday. Sales at major retailers were up 3.2 percent on a year-over-year basis for the week ended August 5, following a 2.8 percent rise the week before, said Redbook Research, an independent company.
Sales at U.S. retailers so far in August were 0.2 percent higher when compared with the same period in July.
http://news.yahoo.com/s/nm/20060808/...JlYmhvBHNlYwM-

Productivity rises at 1.1 pct pace
WASHINGTON - U.S. business productivity rose at a faster-than-expected 1.1 percent annual rate in the second quarter while unit labor costs increased at their fastest pace since the fourth quarter of 2004 as hourly compensation surged, preliminary Labor Department data showed on Tuesday. The report will provide the Federal Reserve with a final key piece of data before its policy committee meets later on Tuesday to decide whether to pause a two-year campaign of rate hikes. Wall Street analysts polled by Reuters had expected productivity to climb 0.9 percent after a previously reported increase of 3.7 percent in the first quarter. The Labor Department revised the first quarter figure sharply upward, to 4.3 percent.
http://news.yahoo.com/s/nm/20060808/...JlYmhvBHNlYwM-

Criticism flies over BP's pipeline maintenance
Even though it markets itself as environmentally conscious, oil giant BP had a troubled record in its Alaskan operations even before late Sunday's announcement that it is shutting down Prudhoe Bay production to replace corroded, leaking pipeline. The move will take away about 8% of U.S. domestic oil production for weeks or months. Environmentalists say that BP (BP) appears to have let its infrastructure deteriorate in what is an aging oil field, instead of investing in upgrades, such as new pipe.
http://www.usatoday.com/money/indust...ine-usat_x.htm

Nokia to Buy Loudeye for $60 Million
Finland - Nokia Corp. said Tuesday it has agreed to buy U.S.-based digital music distributor Loudeye Corp. for about US$60 million (euro51 million) as the world's No. 1 handset maker seeks to grab a larger share of the growing digital mobile music market. Under the deal, Nokia will pay US$4.50 (euro3.50) for each share of Loudeye, a provider of digital music platforms and digital media distribution services. "By acquiring Loudeye, Nokia can offer consumers a comprehensive mobile music experience, including devices, applications and the ability to purchase digital music," the Finnish company said.
http://biz.yahoo.com/ap/060808/nokia_loudeye.html?.v=2

Productivity Gains Slow, Labor Costs Surge
WASHINGTON -U.S. productivity growth slowed during the second quarter, while unit labor costs increased at a rate higher than expected. Non-farm business sector productivity increased 1.1% during April through June, after rising 4.3% in the first quarter, the Labor Department said Tuesday. Productivity is output divided by hours worked. The median estimate of 22 economists surveyed by Dow Jones Newswires and CNBC was productivity rising at a 0.8% annual rate in the second quarter. Unit labor costs - a gauge of inflationary pressures - rose by 4.2%. Costs in the first quarter increased 2.5%.
http://foxnews.smartmoney.com/bn/ON/...08-000265-0845

NWA attendants delay strike due to terror alerts
The Association of Flight Attendants has decided to postpone possible strike action against Northwest Airlines for 10 days due to current security worries. The union, which had intended to launch job actions in the coming week, announced Friday that security duties come first. This moves the strike deadline to 10:01 p.m. EDT, or 4:01 p.m. HST, on August 25, a Friday. Northwest Airlines said Friday night that the union and the airline's flight attendants recognized that the passengers' needs were paramount at a time like this.
http://news.moneycentral.msn.com/pro...812&ID=5943018

JetBlue Courts Corporate America
In an attempt to make greater inroads with corporate customers, low-cost airline JetBlue signed agreements on Friday with travel reservation systems giants Sabre Holdings and Galileo International. The terms of the agreements were not disclosed. Galileo is a unit of Cendant. JetBlue specializes in point-to-point routes between underserved markets and on metropolitan areas with relatively high fares. It has been popular with cost-sensitive consumers but since mid 2005 has taken small steps to broaden its appeal to business travelers. The company was unprofitable in 2005 and expects to lose money this year as well. The agreement highlights the airline's new focus of targeting business travelers, while still maintaining its base of cost conscious customers. In the five-year Sabre deal, travel agents who subscribe to the global reservation system will have access to all of JetBlue’s flights. They will also be available on Travelocity, Sabre’s consumer-oriented website
http://www.forbes.com/2006/08/11/jet...ml?partner=msn

Gates Stresses Search for HIV Vaccine
TORONTO - Bill and Melinda Gates, whose foundation has contributed $1.9 billion to fight AIDS, said Sunday that the search for HIV prevention drugs that would empower women could be the "next big breakthrough" in combating the disease. The couple joined more than 24,000 scientists, activists, celebrities, HIV-positive people and humanitarians from 132 countries for a conference on how to combat the disease that has killed 25 million people since the first case was reported a quarter of a century ago. Gates, who recently announced he would step down from his day-to-day duties at Microsoft Corp. and devote more time to philanthropy, said the search for a vaccine to prevent the virus that causes AIDS was now the foundation's top priority.
http://news.moneycentral.msn.com/pro...813&ID=5943159