BUSINESS BRIEFS
Senators: OPEC flouts trade rules
Associated Press
WASHINGTON — Eleven senators called on the Bush administration yesterday to file a complaint with the World Trade Organization against eight members of the OPEC cartel, saying they are violating trade rules by colluding to hold down global oil supplies.
The senators, 10 Democrats and one independent, said "the very existence of OPEC" violates the GATT trade agreement that prohibits nations from setting quotas or imposing other restrictions on exports.
"The refusal of OPEC nations who are members of the WTO to play by these rules is inexcusable, and they must be held accountable," said the senators in a letter to U.S. Trade Representative Susan Schwab.
The group, led by Sen. Frank Lautenberg, D-N.J., said the White House should direct Schwab to file a complaint with the WTO against the oil producers.
GOLDMAN SACHS REPORTS PROFIT
NEW YORK — Goldman Sachs Group Inc., the world's largest investment bank, yesterday said second-quarter earnings fell about 10 percent, but still easily beat lowered Wall Street expectations on higher fees from asset management and stock underwriting.
The company reported a $2.05 billion profit, or $4.58 per share, for the three months ended May 30 compared with $2.29 billion, or $4.93 per share a year earlier. Revenue fell 7 percent to $9.42 billion from $10.18 billion.
The latest results surpassed Wall Street expectations for a profit of $3.42 per share on $8.74 billion of revenue, according to Thomson Financial.
Shares of the company fell $2.65 to $179.44 yesterday.
BEST BUY'S PROFITS DROP 7 PERCENT
MINNEAPOLIS — Best Buy said first-quarter profits dropped 7 percent in a choppy economy, but the results released yesterday still beat Wall Street expectations. Revenues climbed as customers began spending their rebate checks and took advantage of low-interest financing.
Executives with the electronics retailer foresee a "volatile" year ahead, however.
Net income dipped to $179 million, or 43 cents per share, from $192 million, or 39 cents per share. Earnings per share rose because the smaller profit was spread over fewer shares because of share buybacks.
RULING CRIPPLES YAHOO REBELLION
SAN FRANCISCO — A Delaware judge has denied a request to hold a trial that could have complicated Yahoo Inc.'s efforts to thwart a shareholder rebellion led by activist investor Carl Icahn.
The ruling, issued late Monday by Delaware Chancery Court Judge William B. Chandler III, represents a setback for Yahoo shareholders suing the Internet pioneer for its rejection of a $47.5 billion takeover offer from Microsoft Corp.
Lawyers for the Yahoo shareholders were hoping to secure a July trial date to contest the legality an employee severance plan that would have driven up the potential cost of a Microsoft takeover by between $462 million and $2.7 billion, according to internal Yahoo records handed over during the lawsuit.
Had it been held next month, the trial could have provided more fodder for Icahn to use in his campaign to replace Yahoo's current board at the Sunnyvale-based company's annual meeting Aug. 1.
WAL-MART CUTS SPENDING FORECAST
BENTONVILLE, Ark. — Wal-Mart Stores Inc. is reducing its capital spending forecast for fiscal 2009, as it slows construction of supercenters amid a weakening U.S economic environment.
The world's largest retailer said yesterday it expects to spend $13 billion to $14 billion during the fiscal year ending Jan. 31, 2009. Last October, the company said it expected to spend $13.5 billion to $15.2 billion.
Chief Financial Officer Tom Schoewe said the company plans to moderate supercenter growth in the U.S.
