document.writeln("

OPEC offers spare oil production capacity

Vienna: The Organization of Petroleum Exporting Countries has decided to suspend its quota system for the first time since the 1990 Gulf War, saying it will supply all the oil it can. This gesture from the cartel comes, after prices surged because of Hurricane Katrina.

OPEC estimates its members can pump another 2 million barrels a day. The offer of additional barrels starts Oct. 1 and lasts three months, OPEC President Sheikh Ahmad Fahd al-Sabah said in Vienna.

It would appear that the new supplies will have to come from Saudi Arabia, OPEC's biggest producer, because most other members are operating at their limits. Oil prices yesterday had their largest percentage gain since December 2001 as forecasts for Hurricane Rita raised concern about more damage to Gulf of Mexico oil production and refining facilities.

Crude oil last month reached a record US$70.85 a barrel in New York after Hurricane Katrina shut refineries and curtailed production in the U.S. Gulf of Mexico. Concern about Rita caused oil yesterday to jump US$4.39, or 7 percent, to US$67.39 a barrel in New York.

OPEC members last week had been expected to increase their quota, facing pressure from consuming nations to lower prices. U.K. Chancellor of the Exchequer Gordon Brown on Sept. 10 said rising energy costs are a ``threat'' to economic growth and OPEC should pump more oil.
Back to News Review index page  

New York Times Co. to slash 500 jobs
New York: New York Times Co. on Tuesday said it would cut about 4 percent of its work force, or 500 jobs, and warned that weaker newspaper advertising and rising costs could reduce earnings to less than half of Wall Street forecasts this quarter.

Knight Ridder Inc. also plans to cut staff as the newspaper industry struggles with a lackluster ad market, increased newsprint costs and circulation declines with readers turning more often to the Internet for news.

This is the company's second job cut program since May, when it announced plans to eliminate 190 positions. The company will cut about 500 jobs over six to nine months beginning in October, including 250 positions at the New York Times Media Group and about 160 at its New England Media Group. The reductions include about 80 newsroom positions in total -- 45 at the Times and 35 at the Globe.

Separately, Knight Ridder said it would cut 100 jobs combined at its Philadelphia Inquirer and Daily News newspapers. It warned last week of a 20 percent quarterly profit decline.

The New York Times and rivals have expanded their online offerings to combat falling margins, but the scope of Internet revenue has yet to replace newspaper advertising. In August, the Times' About.com unit helped push total ad revenue up 1.7 percent. Excluding the information site, ad revenue fell 1 percent.
Back to News Review index page  

Microsoft revamps corporate structure
Redmond, USA: In response to investor criticism that it had become too big to respond swiftly to the changing market for technology, Microsoft said Tuesday that it is reorganizing into three business divisions.

Among the newly formed groups, the Platform Products & Services Division will include Windows Client and the MSN portal and will seek to deliver more services over the Internet. The Business Division will focus on software and software-based services, while the Entertainment & Devices Division will emphasize the Redmond-based company's push into entertainment products and services.

"These changes are designed to align our business groups in a way that will enhance decision-making and speed of execution, as well as help us continue to deliver the types of products and services our customers want most," said Microsoft CEO Steve Ballmer in a statement.

The lackluster performance of Microsoft's stock, coupled with the exit of several key executives, is likely to have spurred the reorganization. The stock closed down $0.16 to $25.84 Tuesday and has been hovering at this level for the last three years. Meanwhile, shares of many other tech firms have risen considerably.

As part of the change, Microsoft said its Products & Services Division will be led by Kevin Johnson and Jim Allchin as co-presidents. The company also named Jeff Raikes president of its Business Division, and Robbie Bach president of its Entertainment & Devices Division.

Microsoft also said that Ray Ozzie "will expand his role as chief technical officer by assuming responsibility for helping drive its software-based services strategy and execution across all three divisions."
Back to News Review index page