BUSINESS BRIEFS
Tension between U.S., Venezuela lifts oil over $126
Associated Press
NEW YORK — Oil rose above $126 a barrel for the first time yesterday, bringing its advance this week to nearly $10, as investors questioned whether a possible confrontation between the U.S. and Venezuela could cut exports from the OPEC member.
Gas prices, meanwhile, rose above an average $3.67 a gallon at the pump, following oil's recent path higher.
Yesterday, The Wall Street Journal published a report that suggested closer ties between Venezuelan President Hugo Chavez and rebels attempting to overthrow Colombia's government, which heighten the chances that the U.S. could impose sanctions on one of its biggest oil suppliers.
FEDEX LOWERS 4Q PROFIT PREDICTIONS
MEMPHIS, Tenn. — FedEx is cutting its fourth-quarter guidance, blaming a steep increase in fuel costs.
The Memphis, Tenn.-based shipping company says it now expects to post a fourth-quarter profit of $1.45 to $1.50 per share, down from its previous prediction of $1.60 to $1.80 per share.
Fedex says its fuel costs have risen by more than 7 percent since it issued its previous guidance in March.
U.S. TRADE DEFICIT NARROWS 5.7%
WASHINGTON — The U.S. trade deficit narrowed sharply in March as demand for imports fell by the largest amount since the last recession was ending.
Analysts forecast that trade would continue to be one of the economy's few bright spots this year.
The March deficit totaled $58.2 billion, down 5.7 percent from February, the Commerce Department reported yesterday.
It was a much larger improvement than had been expected. The smaller deficit was driven by a 2.9 percent drop in imports.
It marked the biggest one-month decline in imports since December 2001.
CLEAR CHANNEL UPS 1Q EARNINGS
NEW YORK — Clear Channel Communications Inc., a major radio and outdoor advertising company, reported higher first-quarter earnings yesterday on asset sales but operating results were flat, reflecting weak demand for radio advertising.
The San Antonio-based company is battling its lenders in court as it tries to go private, and says it's not sure when the $19.5 billion deal will close, if at all.
Clear Channel earned $799.7 million, or $1.61 per share, in the first three months of the year, versus $102.2 million, or 21 cents per share, in the same period a year ago.
MICROSOFT FOCUSED ON OWN GROWTH
JAKARTA, Indonesia — Microsoft Corp. will focus on growing its own advertising and Internet search business after it withdrew its takeover offer for Yahoo Inc., Chairman Bill Gates said yesterday.
Microsoft has not presented another strategy to compete with its rival Google Inc. since withdrawing a $47.5 billion bid for Yahoo Inc. last weekend.
Analysts have been left wondering how the software giant will increase its share of that multibillion dollar market without a major tie-up.
Gates says Microsoft remained open to making acquisitions, but declined to comment on possible candidates, such as networking sites like Facebook in which Microsoft already holds a 1.6 percent stake.
CORN PRODUCTION MAY FALL BY 7%
DES MOINES, Iowa — Corn production this year could be down as much as 7 percent from the record highs of 2007, according to a U.S. Department of Agriculture report released yesterday.
The prediction is a foreboding sign for those hoping for a drop in prices.The USDA report projects farmers will harvest about 12 billion bushels of corn this year. About one-third of the harvest will be directed toward ethanol production, the USDA estimates.
