Gas down 12 cents over two weeks

According to a national survey that is released on Sunday regular price of gas dipped below $4 a gallon for the first time since June starting.

Across the nation average price at gas stations was a fraction of a cent below $4.00 for a gallon of self-serve regular as indicated in a survey.

Computed prices at thousands of gas stations nationwide, found an average of $3.9959 that show price downed about 12 cents over two weeks. 12 cents drop is of great concern. According to a spokesperson this fall is mainly caused due to fall in record crude oil prices. In spit of this some other cities face fall of more than 20 cents in the last two weeks compared to last survey.

Down from about $145 earlier in the month was recorded on July 25 on which latest survey was taken. Drop in gas prices might be increased due to decelerate in demand and it is expected that price could drop another nationally in following few weeks. Survey concluded that Alaska had the highest average gas price at $4.43 whereas Kansas had the cheapest gas at $3.61.

According to a report published the global sale of vehicles has hit Toyota. Sales have come down from 9.85 million to 9.5 million. Some say its because of
slow Japanese automaker’s drive as the effect of slow-moving North American market. While 2006 was a 6 percent while in the current year its growth speed has clearly slowed down.

It isn’t just Toyota alone that’s feeling the heat. Booming oil prices combined with economic slowdown is causing concern to automobile manufacturers. Take the case of Ireland in which new car sales down 17.5% in first half of year. On the other hand emerging economies seem to have a gala time. Take the case of Thai auto exports jump nearly 23 percent in June. The other emerging economy India is getting increased sales but the industry is having a tough time controlling costs due to raw material costs. Among those who have lowered the targets include General Motors Corp and Toyota.

Since fuel expenses increased Ryanair Holdings Plc, Europe’s biggest discount airline, record approximately 85% fell in profits, and may post its first full-year loss since going public in 1997.

Apart from write downs fell to 21 million euros ($33 million) from 138.9 million euros a year earlier. Ryanair plunge as much as 25 percent in Dublin trading after saying today first-quarter net income however analysts foretell profit of 50.9 million euros.

An annual result of between breakeven and a loss of 60 million euros expected by the hauler who are facing record oil prices and a snag in consumer expenditure. 5 percent fall in the full year is expected by Ryanair in yields, or average ticket prices due to its lower tariffs. Ryanair had previously said it would probably break even this fiscal year.

Fall in yields might be an indication of some imperfection in last-minute bookings and matter of great concern. EasyJet Plc, Europe’s second-biggest discount airline, fell 10 percent, compare to which drop of 25 percent was most since January 2004,in Dublin based Ryanair .The airline also planning to ground 19 planes at Dublin and London Steansted.

Global credit crisis and high oil prices are causing downturn in the U.K. and Ireland promising economy, results in tumbling consumer’s confidence and may cause further adverse effect on yields for the rest for the year as stated by Chief Executive Officer of Ryanair in a report. Record rise in oil prices turns airline industry towards bankruptcy and forced at least 24 carriers to cease flying.

To survive it has to double its fare charges like others according to a spokesperson and it would be impractical to think that fare and fuel surcharges are going to increase as customers faith is now faded.

Kohlberg Kravis Roberts, arguably the world’s most famous buyout firm, plans to finally go public, initially with a listing in Amsterdam, reports said Sunday.

The private equity fund plans to list on the New York Stock Exchange later this year in a complicated transaction that involves buying its publicly listed Amsterdam investment fund.

The Wall Street Journal also reported online that the company, perhaps best known for its takeover of RJR Nabisco, is being taken public, and that the transaction could value the firm between $12-billion (U.S.) and $15-billion.

The plan was expected to be unveiled on Monday morning before European markets open.

The change, which comes at a time when such firms have become a popular target on Capitol Hill, means more scrutiny from the Securities and Exchange Commission and other Washington regulators.

Rival Blackstone Group LP, run by Stephen Schwarzman, went public in an initial public offering in June 2007 that raised $4.75 billion. The stock has since fallen more than 51 percent.

The deal also addresses a concern that KPE’s stock has been illiquidly traded. Under the deal, KKR is giving KPE stockholders an insurance policy that if the stock does not trade at specified levels, KKR will give up to an additional 6 percent ownership in the company, one person told Reuters.

The founders will not be taking any cash out of the company in the listing, the source said.

Frontier Airlines negotiated with a handful of potential financial backers after filing for bankruptcy protection in April. But as oil prices hit record highs in June and Frontier’s prospects dimmed, they began to fall away. All but one.
Denver-based Frontier, said it received a $75 million debtor-in-possession financing commitment from Perseus.

The airline said the change means that travelers can now get a confirmed seat instead of having to wait on standby. Frontier also said the change will eliminate the delays of boarding standby passengers, and will start charging travelers to switch flights on the day of their travel, and will charge $150 to make changes on days prior to the flight.

The proposed DIP funding, coupled with Frontier’s negotiations with partners to improve liquidity, reduce expenses, and preserve cash, is expected to provide sufficient working capital for the Company’s operations. The Company continues to work with its partners and employees to obtain additional liquidity, reduce expenses and enhance revenues.

Frontier said the investment firm’s involvement in the airline’s reorganization allows Perseus to buy 79.9 percent of the equity in the reorganized company for $100 million.

Airlines represent a new area for Perseus, which describes its specialties as branded consumer products, business and outsourced services, energy, health care and life sciences and technology.

Senate lawmakers approved the bill, which contains billions of dollars in loan guarantees, a tax break for first-time homebuyers and many other provisions, by a vote of 72 to 13.

The bill now head to the White House, President Bush has indicated he will sign it in spite of objections about a provision directing $4 billion in emergency aid to local communities to buy and rehabilitate foreclosed homes.

Economists, consumer advocates and other analysts said the package of programs for struggling homeowners and shaken mortgage lenders is unlikely to relieve the foreclosure crisis that is driving the nation toward recession.
With foreclosures at record levels, home sales sluggish and property values down, America is in its deepest housing slump since the Great Depression.
Fears that Fannie Mae and Freddie Mac, the largest U.S. mortgage companies, might collapse upset global markets earlier this month and forced the Bush administration to call for emergency measures to shore up investor confidence.
Fannie Mae CEO Daniel Mudd said “the legislation should reinforce confidence that the GSEs will be able to serve the housing finance system now and in the future.”

“If we’re lucky enough to help 400,000 households,” said economist Jared Bernstein, “I’m afraid it’s a drop in the bucket.”

How this will affect the American housing market and the result it will have on the American economy is yet to be seen.

Ever since Apple’s (AAPL) co-founder, CEO and resident visionary Steven P. Jobs showed up at the Apple developers’ forum looking like a stick figure in a turtleneck, there has been talk about whether he is suffering from a recurrence of the pancreatic cancer he was diagnosed with in 2004.

“While his health problems amounted to a good deal more than ‘a common bug,’ they weren’t life-threatening and he doesn’t have a recurrence of cancer,” journalist Joe Nocera wrote in a column.

“Because the conversation was off the record, I cannot disclose what Mr. Jobs told me,” Nocera said.

One brokerage analyst says in the NYT, “Apple is Steve Jobs and Steve Jobs is Apple.” The analyst estimates that the company’s share price would fall by as much as 25 per cent if Jobs were to “leave the company unexpectedly” (nice euphemism there). What other event could cause that kind of drop and not be considered material?

In keeping with its usual secrecy, the company held off revealing Jobs’ previous bout with cancer until after his successful surgery. But the fact remains that Steve Jobs accounts for a substantial portion of the value of a publicly-traded company, and that effectively makes it a matter of public interest, whether Apple likes it or not.

Amgen Inc. (AMGN) shares surged a new 52-week high, as a result of the reported success of a massive pivotal trial of its bone drug Denosumab in reducing fractures in post- menopausal osteoporosis patients.

In the three-year study of 7,800 women, denosumab reduced the number of new fractures in the osteoporosis patients more than a placebo, as well as adding bone mass to the test subjects. Investors are counting on denosumab to be the next blockbuster for the company which has had two years of sales declines. Amgen will announce the complete data at the meeting of the American Society of Bone and Mineral Research in September.
The Thousand Oaks, Calif., biotech company has suffered plunging sales of the flagship anemia drug Aranesp after it was found to increase the risk of cardiovascular events, cancer progression and death in certain patients.
“From a Wall Street perspective, people looking at Amgen say, ‘This is it,’ ” Mark Schoenebaum, biotechnology analyst
“This was probably one of the greatest discoveries in bone physiology,” said Dr. J. Christopher Gallagher, professor and director of the bone metabolism section at Creighton University.
Analysts surveyed by Thomson Financial expect the company to report second-quarter earnings of $1.02 per share on $3.58 billion in revenues when it releases its results on Monday. Amgen is hoping to keep the good news coming.

While spiraling fuel prices force many airlines to slash routes or exit from the market, South-West Airlines seems poised to rank as the busiest carrier at the Los Angeles International Airport. In another four of the regional airports in southern California, South West Airlines has again flown ahead of others with the largest number of flights. Experts see this success as a result of the airlines astute fuel-hedging policy.

South-West airlines is one of the most popular low cost carriers in the United States. One of the primary ways it has been able to keep its costs low is to make use of fuel price hedging. Last week while crude oil prices rose to $126 a barrel, South West airlines continued to pay $51 a barrel, thanks to a long-term contract which helped the airlines to seal in the prices for a major portion of the fuel it would use this year.

In recent months South West airlines has managed to buy jet fuel at an average of $2.19 a gallon, while the rest of the airline industry is compelled to shell out an average of $3.15 a gallon. The resulting low costs have boosted the profits of the airlines and given it a keen edge over its competitors in the market. Thus while other airlines are incurring huge losses and even being forced to exit, South West airlines continues to expand its routes and capture a larger share of flights at regional airports.

-Kalyani Mookherji

Credit card woes bog down many a consumer in contemporary modern economy. The advantages of using credit cards lie mainly in the ease and convenience of cashless transactions. However it is extremely easy for users to get into credit card debt which then keeps snowballing into terrifying proportions. However, it is not impossible to avoid the credit card debt trap.

The most important step to take is to keep paying off the credit card balance every month. If the balance is very high, then at least one should pay more than the minimum amount that is due. A simple rule one can apply is to add $50 to several hundred dollars plus the minimum due so that the principal balance can be paid off. At the same time the user must exercise restraint and avoid using the credit card for this period.

However, if the debt includes a huge amount, one can check to see if the credit card company can offer lower rates. Incredible as it sounds, it just might work! Or else, the consumer can shop for other credit cards with lower rates and transfer the balance. Another prudent thing to do would be to consolidate several credit card debts into one debt which will require a single payment every month. Finally, it is up to the consumer to make the right changes in spending habits which will help him to make better choices in life.

-Kalyani Mookherji