EADS Eyes Tunisia; McDonald’s Thrives on Slump; Reynolds American Makes Cuts; DOJ Hires Big Gun to Scrutinize Google-Yahoo Deal; Google Space; Pending Home Sales Collapse; Manpower Decline; Deficit to Soar to Record in 2009
European Aeronautic, Defence & Space Co. NV (PINK: EADSY), parent company of Airbus SAS, announced yesterday (Tuesday) that it would shift production operations to non-European Union countries such as Tunisia in an effort to cut costs, Bloomberg News reported. “We're planning to produce basic parts in Tunisia, while research and production of more sophisticated parts and composites would be in Europe,” EADS spokeswoman Gaelle Pellerin said yesterday, confirming comments made by Chief Executive Officer Louis Gallois.
McDonald’s Corp. (MCD) reported yesterday (Tuesday) that same-store sales increased 8.5% in the month of August as cash-strapped consumers took advantage of the fast food chain’s value menus. “McDonald's does well in bad economies because people trade down,” John Kornitzer, who oversees $5 billion at Kornitzer Capital Management, told Bloomberg News.
Reynolds American Inc. (RAI), parent of R.J. Reynolds Tobacco Co., announced yesterday (Tuesday) that it plans to reduce 10% of its staff as part of a restructuring program to realign its brands. The bulk of the cuts will come from the second-largest U.S. tobacco company’s Winston-Salem, North Carolina headquarters, The Associated Press reported.
Google Inc. (GOOG) and two other partners, cable television magnate John Malone and HSBC Holdings PLC (HBC), have announced plans to bring internet access to 3 billion people in Africa and other emerging markets around the world with the launch of at least 16 satellites. So far, each partner of the “O3b” (Other 3 billion) venture has contributed $20 million into the project. The satellites should be operational by 2010, Reuters reported.
The National Association of Realtors said yesterday (Tuesday) that its seasonally adjusted index of pending U.S. home sales fell 3.2% to a reading of 86.5 in July from an upwardly revised June reading of 89.4. Home sales are considered pending when the seller has accepted an offer, but the deal has not yet closed.
Staffing services company Manpower Inc. (MAN) said yesterday (Tuesday) that its seasonally adjusted net employment outlook fell for the fourth consecutive quarter, reaching a level of 9 – down from 12 last quarter and 18 a year ago. The index measures the difference between employers who plan to add jobs and those who expect to cut them.
The federal government will run a near-record deficit of $407 billion this year Congressional Budget Office said yesterday (Tuesday). The deficit will probably reach a record $438 billion next year and could go substantially higher after the government’s seizure of Fannie Mae (FNM) and Freddie Mac (FRE).