BUSINESS BRIEFS
Fed watchers see another rate cut
Advertiser Staff and News Services
WASHINGTON — The Federal Reserve will decide today whether to cut interest rates for the seventh time in seven months. For leaders of the central bank there is no obvious course of action, with big risks no matter what they do.
The policymakers' most likely course is to cut the federal funds rate by a quarter percentage point, to 2 percent, according to the consensus of Fed watchers. In this view, the central bank would signal, through its statement accompanying the rate cut, that it was inclined to hold off cutting rates any further if there are no new negative surprises for the economy or financial markets.
"There are still enough problems out there for them to be concerned about the risks to growth," said Peter Hooper, chief economist of Deutsche Bank Securities. "The odds aren't overwhelming, but they favor cutting further."
COUNTRYWIDE STILL STRUGGLING
LOS ANGELES — Countrywide Financial Corp. said yesterday it lost $893 million in the first quarter, as rising loan defaults amid a deepening housing downturn forced the nation's largest mortgage lender and servicer to sharply increase its provision for loan losses and book other credit-related charges.
The latest results marked the third consecutive quarterly loss for Countrywide, which reaped a windfall during the housing boom but has been struggling since last summer, despite predictions last fall by CEO Angelo Mozilo that his company would turn a profit in 2008.
The Calabasas, Calif.-based company, which agreed in January to sell itself to Bank of America Corp. for about $4 billion in stock, did not conduct an earnings conference call with analysts, citing the proposed sale.
MASTERCARD USE, EARNINGS CLIMB
NEW YORK — MasterCard's profit more than doubled in the first quarter as more customers outside the United States used their credit and debit cards for purchases.
Cardholder spending within the United States rose, too, but at a more moderate pace, indicating that while Americans are increasingly turning to plastic in a weak economy, emerging markets are becoming especially lucrative.
The Purchase, N.Y.-based card processor said yesterday it earned $446.9 million, or $3.38 per share for the January to March period. That is up from $214.9 million, or $1.57 a share, in the same timeframe last year.
CBS PROVES ANALYSTS WRONG
Led by stronger-than-expected results in its TV division, CBS Corp. yesterday beat Wall Street expectations and posted a 14 percent jump in net income for the quarter ending March 31.
The broadcasting company's profit increased to $244.3 million, or 36 cents per share, for the period. The gain occurred despite flat revenue of $3.65 billion, a drop in television advertising sales and a plunge in the network's prime-time ratings due to the writers strike.
Although analysts had expected results to be hampered by the strike, CBS said the ratings decline was more than offset by lower TV production costs and the sale of reruns for the shows "Everybody Loves Raymond" in the U.S. and "CSI: Crime Scene Investigation" abroad.
YANG'S YAHOO SALARY $1 IN 2007
SAN FRANCISCO — Yahoo Inc. co-founder Jerry Yang added the chief executive's job to his workload last year, but his salary remained unchanged at $1 — a token payment he has accepted for years because the Internet icon already has made him a billionaire.
The Sunnyvale-based company disclosed the 2007 compensation packages given to Yang and its other top-paid executives in an amendment yesterday to its annual report.
Yang, 39, didn't receive a bonus, stock options or any other rewards to supplement his $1 salary during a year in which Yahoo's earnings fell by 12 percent while its stock price shed 9 percent.
