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The Tampa Tribune

Published: August 3, 2008

Rebates Helped Economy - Some - In Second Quarter

WASHINGTON (AP) - The prospects for a quick economic recovery dimmed Thursday, with new data showing the economy grew at a slower-than-expected rate this spring despite some oomph from tax rebate checks - and actually shrank late last year.

Americans boosted spending on food, clothing and other items in the second quarter, the Commerce Department reported. But the gross domestic product still increased at a 1.9 percent annual rate, up from 0.9 percent in the first quarter but less than the 2.4 percent economists were looking for.

Meanwhile, the Labor Department said the number of newly laid-off people rose to 448,000 last week, the most in five years. More job cuts are expected in coming months, and Americans may cut back on spending, kindling recession fears.
Exxon Mobil 2Q Profit Sets US Record, Shares Fall

HOUSTON (AP) - Exxon Mobil Corp. reported second-quarter earnings of $11.68 billion Thursday, the biggest profit from operations ever by any U.S. corporation, but the results were well short of Wall Street expectations and its shares slumped 3 percent.

The world's largest publicly traded oil company said net income for the April-June period came to $2.22 a share, up from $10.26 billion, or $1.83 a share, a year ago.

Revenue rose 40 percent to $138.1 billion from $98.4 billion in the year-earlier quarter. Excluding an after-tax charge of $290 million related to an Exxon Valdez court settlement, earnings amounted to $11.97 billion, or $2.27 per share.

Bristol-Myers Offering $4.5 Billion For ImClone

TRENTON, N.J. (AP) - Bristol-Myers Squibb Co. on Thursday offered $4.5 billion in cash for its cancer drug partner, biotechnology company ImClone Systems Inc., saying the two are "a natural fit."

The proposal offers ImClone stockholders $60 per share, a 30 percent premium to the New York-based company's closing price of $46.44 Wednesday. New York-based Bristol-Myers, the world's No. 14 drugmaker by revenue, already owns about 17 percent of ImClone.

The two companies have been partners since September 2001 in developing Erbitux, which is approved for treating advanced colorectal cancer and head and neck cancers.

Wall Street Slides On GDP, Jobless Data

NEW YORK (AP) - Wall Street sank Thursday, after weak readings on economic growth and the job market touched off renewed concerns about the financial health of businesses and consumers. The Dow Jones industrial average fell more than 200 points to 11,378.02, continuing its string of erratic, triple-digit daily swings.

Investors were concerned about data from the Commerce Department and the Labor Department, but the offer from Bristol-Myers Squibb Co. for its cancer drug partner ImClone Systems Inc. kept the Nasdaq composite index from falling as sharply as other indexes.

In other positive news, oil prices declined, and an index of Midwestern business activity indicated growth.

Oil Falls To Almost $124 On Dour US Economic Data

NEW YORK (AP) - Oil prices pulled back Thursday, wiping out some gains from the previous day's $4 a barrel rally, as traders bet that a cooling U.S. economy will continue to eat into U.S. demand for fuel.

At the pump, easing prices underscored Americans' waning consumption of gasoline. The average price of a gallon of regular slipped 1.7 cents to $3.909, according auto club AAA, the Oil Price Information Service and Wright Express.

Light, sweet crude for September delivery fell $2.69 to settle at $124.08 a barrel on the New York Mercantile Exchange, a day after the contract soared more than $4 in the biggest one-day jump in two weeks. Prices have now fallen in four of the last seven sessions and are 14 percent off their all-time trading high above $147, reached July 11.

Mass. Regulators Accuse Merrill Lynch Of Fraud

BOSTON (AP) - Massachusetts security regulators accused Merrill Lynch of fraud Thursday for allegedly promoting the sale of auction-rate securities when they knew the investments were becoming increasingly unstable.

The administrative complaint filed by Secretary of State William Galvin claims Merrill Lynch, Pierce, Fenner & Smith - the main subsidiary of Merrill Lynch & Co. - aggressively sold the securities while downplaying the risks.

Auction-rate securities have their interest rates set at periodic auctions, depending on the submitted bids. The investments were once considered safe, but the market collapsed in February amid turmoil in the credit markets.

Chavez To Nationalize Spanish-Owned Bank

CARACAS, Venezuela (AP) - President Hugo Chavez said Thursday he intends to nationalize the Bank of Venezuela, which is owned by the Santander banking group of Spain.

Chavez said he made the decision to nationalize after learning that Santander had begun to make contacts with a local bank to sell the institution. He said the local bank asked for authorization from the government, but that he, "as the head of state," nixed the sale.

A Bank of Venezuela spokesperson - speaking on condition of anonymity because of the sensitivity of the issue - told The Associated Press that the bank heard of the nationalization on television and has no other information.

Santander purchased the Bank of Venezuela in 1996. The financial institution is the country's third-largest bank.

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