Business News Bits for Monday, August 31, 2009

A 6.7 percent fall in China's index on Monday resulted in the selling of Chinese shares. Energy and material companies experience the most significant losses. Stricter bank lending practices have led to significantly more sales of Chinese shares. The Chinese economy has grown even in the face of global economic recession. This dip in China's economy may have a negative impact on the rest of the world's economies as China consumes a great deal of U.S. exports.

Star Tribune, Coming Out of Bankruptcy, Names its Four New Board Members

Star Tribune, coming out of bankruptcy September 8, has announced four new board members. William F. Farley, L. Gordon Crovitz, Michael E. Reed, Michael T. Sweeney, and two others are expected to lead the newspaper company. Like many companies during the economic recession, Star Tribune faced dwindling revenue and was forced to file for bankruptcy in January 2008.

Walt Disney Co. Plans to Purchase Marvel Entertainment, Inc

Spider Man, X-Men, Iron Men, and a slew of other Marvel characters will soon be Disney characters. Monday, Walt Disney Co. announced that it will purchase Marvel Entertainment Inc. The purchase price is $4billion.

Southwest Airlines Must Replace Unapproved Parts in 82 Planes by Tuesday

Southwest Airlines has until Tuesday to replace parts, which are unapproved by FAA regulators. Time is quickly running out and the airline needs more time. As of August 22, Southwest was given ten days to replace parts in what was believed to be just 46 planes. In actuality, a total of 82 planes need replacement parts.

$5.5 Billion Oilfield Company Purchase Deal

Baker Hughes Inc., an oilfield company, will purchase BJ Services Co for $5.5 billion. Baker Hughes anticipates that it will be better equipped to expand its services. Some short term predictions do not favor Baker Hughes Inc. According to market analyst Tom Curran, this deal could do some damage as the company could face questions about why it waited until BJ Services shares increased more than 30 percent to purchase the company.

Tata Motors Sees Major Losses in 1^st Quarter

Poor sales of Jaguar and Land Rover have meant $66 million in losses for Tata motors in the first quarter. The company blames the poor global economy and its negative impact on the automobile industry.

Fed Considers How to Deal with Security Purchases.

The Federal Open Market Committee is divided in the way it ought to deal with the long-term security purchases of the central bank. Some hold that the economy is still fragile and that it is too early to think about cut back security purchases. Others think that it is important to give up its long-term security purchases.

PetroChina Invests $1.7 billion in Oil Sands Projects

PetroChina is investing $1.7 billion, accounting for 60 percents interest, in Canadian oil sands projects. PetroChina will be working in conjunction with Athabasca Oil Sands Corp. in this long-term investment.

Oil Prices Fall 4 Percent

Monday, oil prices fell to $69.90 for a total decline of 4 percent. The global economy has suffered losses as a consequence of the dip experienced by China's market. China is the second largest oil consumer.

Canada's Economy Sees Some Improvement in 2nd Quarter

Canada's economy is seeing some improvements in the second quarter. A growth factor of 0.1 percent this June serves as a positive sign. Monday, Canada's government announced that in this second quarter the economy is shrinking at a 3.4 percent rate. In the first quarter, the Canadian economy shrank at a 6.1 percent rate. Growth seen in June supports claims that the state of the global economy is slowly progressing.

References

http://news.yahoo.com/s/ap/20090831/ap_on_bi_st_ma_re/us_wall_street;_ylt=AmfYigWB5tYTp7sfx1QqIlSyBhIF;_ylu=X3oDMTJmODI3Z2EwBGFzc2V0A2FwLzIwMDkwODMxL3VzX3dhbGxfc3RyZWV0BGNwb3MDMQRwb3MDMgRzZWMDeW5fdG9wX3N0b3J5BHNsawNzdG9ja3NzbGlkZWE-

http://news.yahoo.com/s/ap/20090831/ap_on_bi_ge/us_star_tribune_bankruptcy;_ylt=AoiBvr0OuSxrb0PAlTELCcKyBhIF;_ylu=X3oDMTJydjV2M3ZpBGFzc2V0A2FwLzIwMDkwODMxL3VzX3N0YXJfdHJpYnVuZV9iYW5rcnVwdGN5BGNwb3MDMgRwb3MDNQRzZWMDeW5fdG9wX3N0b3J5BHNsawNleC13c2pwdWJsaXM-

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http://news.yahoo.com/s/ap/20090831/ap_on_bi_ge/us_baker_hughes_bj_services;_ylt=AhGV_270MxjcUG2TGXjerSmyBhIF;_ylu=X3oDMTMwamhnaHRiBGFzc2V0A2FwLzIwMDkwODMxL3VzX2Jha2VyX2h1Z2hlc19ial9zZXJ2aWNlcwRjcG9zAzUEcG9zAzIEc2VjA3luX2hlYWRsaW5lX2xpc3QEc2xrA2Jha2VyaHVnaGVzdA--

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http://news.yahoo.com/s/ap/20090831/ap_on_bi_ge/cn_canada_economy;_ylt=Al_OoCg8_fSR1hbC2RfDOkGyBhIF;_ylu=X3oDMTJkdXZxYzNhBGFzc2V0A2FwLzIwMDkwODMxL2NuX2NhbmFkYV9lY29ub215BHBvcwM0BHNlYwN5bl9zdWJjYXRfbGlzdARzbGsDY2FuYWRhc2Vjb25v