Insightful analysis and commentary for the US and global equity investor
Contributors: Douglas McIntyre Jon C. Ogg

Previous Posts

Tuesday, August 01, 2006

Media Digest 8/1//2006


Reuters writes that when the Big 3 US auto makers report July sales they may drop their forecasts for the year. Higher gas prices and a slowing economy are likely to cause the number of vehicle sale to be considerably below the industry forecast at the beginning of 2006.

Reuters writes that Brooks Automation says its former CEO and two directors created "false" documents related to stock options. The company supplies equipment to the semiconductor business.

Reuters reports that TimeWarner Cable and Comcast have completed their acquisition of the assets of bankrupt cable operator Adephia. The transaction is valued at about $17 billion and will significantly increase subscriber counts at the two cable giants. TimeWarner will spin-off its cable group through an IPO with the proceeds going to Adelphia creditors.

Verizon Wireless will offer its subsribers the ability to pay a fee for each song they download instead of a flat monthly fee in the hopes of increasing revenue from its sales of music.

According to the Wall Street Journal, steel maker Mittal's purchase of Arcelor could cost $6.38 billion more than anticipated due to resistance from minority holders of Arcelor's Brazil unit.

The WSJ writes that flight attendants at Northwest Airlines rejected a labor contract raising the possiblity that 9,000 employees could strike the airline.

The WSJ reports that IBM will expand its use of AMD chips in five new servers that it will introduce for mainstream business applications. The move is a setback for chip maker Intel. Mercury Research reported yesterday that AMD's share of global chip sales in units shipped in the second quarter rose to 25.8% from 22.1% in the first quarter.

The WSJ writes that Ford will cut incentive programs instead opting to offer lower pricing on new 2007 models to move inventory.

The WSJ also writes that Teck Cominco, a Canadian firm, has raised its bid for nickle company Inco to $16.1 billion creating a challenge for Phelps Dodge which is also bidding for the company.

The New York Times reports that for the first time ever Japanese car markers produced more cars in foreign companies that in Japan last model year.

The NYT also reports that oil rose above $75 a barrel primarily due to a leak in a major Russian pipeline.

The NYT reports that UAL, parent of United Airline, reported its first quarterly profit since 2000. Higher fares and a larger number of passengers were the key factors in driving the profit.

Douglas A. McIntyre

Powered by Blogger