U.S. Bankruptcy Filings Soar; Japan's Bankruptcy Jitters; Boeing Backs Down in Face of Strike; Quicksilver's Ski Sale; Gustav Pushes Crude Higher; TiVo Swings to Profit; PetroChina Hurt by Subsidies; BP Ending Russian Venture
In yet another indication of the weak economy, U.S. bankruptcy filings spiked in the second quarter, up 29% for the 12-month period ended June 30. Business filings ratcheted up more than 41% to 33,822 from 23,889 the year before. Non-business filings totaled 934,009, up 28% from the same period in the prior year, CNNMoney.com reported.
Tokyo-based real estate developer Sohken Homes Co. Ltd. filed for bankruptcy, sparking concern over a weakening Japanese economy. "If consumers were confident their salaries would remain secure, they'd buy condos and homes even with 30-year loans," Yoshihiro Ito, senior strategist at Okasan Asset Management Co. in Tokyo, told Bloomberg News. "With rising prices and stagnant income growth, that isn't the case now."
Aerospace firm The Boeing Co. (BA) withdrew plans to begin phasing out its traditional employer-sponsored pension plan after threats of a strike from the International Association of Machinists and Aerospace Workers. Boeing had hoped to replace the costly plan with a 401(k)-type plan that was more dependent on employee contributions, MarketWatch reported.
Light, sweet crude for October delivery rose $1.88 to settle at $118.15 a barrel on the New York Mercantile Exchange yesterday (Wednesday), after earlier spiking as high as $119.63. Crude has jumped more than $3 this week as Hurricane Gustav continues to slowly spiral towards the Gulf Coast.
TiVo Inc. (TIVO) posted a quarterly profit for only the third time in its 11-year history yesterday (Wednesday), reporting $2.9 million in net income, or 3 cents per share, compared with a loss of $17.7 million, or 18 cents a share, over the same period last year. The company said it expects TiVo also said it expects a net loss in the range of $7 million to $9 million for the current quarter, MarketWatch reported.
PetroChina Co. Ltd. (ADR: PTR) posted a 38% drop in quarterly earnings after refining losses and windfall taxes dissolved gains from soaring crude prices. The company will likely continue to find itself encumbered by state-capped fuel prices, even after Beijing raised gasoline and diesel prices by 18% in June, Reuters reported.
BP PLC (BP) is conducting secret, high-level negotiations with the billionaires who co-own its troubled Russian venture TNK-BP and an outline deal to settle their dispute may come in weeks, a source familiar with the matter told Reuters. Lamar McKay, a top BP official brought in to end the saga at TNK-BP, held a five-hour meeting in London the week before last with Mikhail Fridman - the billionaire oligarch who calls the shots on the Russian side of the company, Reuters reported.