Microsoft shares rise smartly as Q3 earnings go up 65 per cent
Shares of Microsoft Corp rose to their highest levels in three months after the world's dominant software maker reported a 65 per cent jump in third-quarter earnings and forecast sales for the next year that may exceed analysts' estimates.

The stock advanced $1.02, or 3.5 per cent, to $30.12 at 4 p.m. New York time, in Nasdaq Stock Market trades. The rise boosted the company's market value by about $10.1 billion, to $297 billion.

The stock had fallen 6.7 per cent during the third quarter on shareholder concerns that the release of Windows Vista and Office 2007 might not produce enough sales to meet estimates.

Microsoft said sales next year will rise to $56.5 billion to $57.5 billion, which may exceed the $56.6 billion average analyst estimate.

Microsoft's share decline in the quarter compares with the 0.2 percent gain in Standard & Poor's 500 Index.
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Stagflation rears its head in US
New York: The US economy has slowed more sharply than expected in the first three months of the year, according to the latest GDP report, and is showing the same weak rate of growth as in 2003.

According to the latest quarterly GDP figures, growth is now at 1.3 per cent, just about half the growth rate of the previous three months. It is also well below the 1.8 per cent that economists had forecast.

For the Federal Reserve, the problem is compounded by the fact that figures also suggest swelling inflationary pressures that may prevent the Fed from going in for interest rate cuts in a bid to kick-start the economy.

The American housing market continues to be the mainly responsible for the slowdown, with residential building activity sliding 17 per cent in the quarter. This slide is the sixth straight one in a row and comes on the back of a fall of 19.8 per cent in the fourth quarter.

However, the slow down is yet to undermine consumer sentiment, with first-quarter consumer spending growing at a 3.8 per cent annual rate, down modestly from the 4.2 per cent rate in the previous three months. Consumer spending in the US accounts for two-thirds of national economic activity.

Exports declined at a 1.2 per cent rate in the first quarter, down sharply from a 10.6 per cent advance in the fourth quarter. This also is the first decline since 2003. The decline comes along with unexpected weakness in government spending.
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Statoil ASA picks up Canadian oilsands firm for $2.2bn
Calgary, Canada: Norwegian government firm, Statoil ASA, has paid $2.2 billion to acquire Calgary-based North American Oil Sands Corp, offering $20 a share for the private company.

"Today's acquisition is an important strategic move which supports our global growth ambition and increases our reserve bookings in the long term," Statoil CEO Helge Lund said through a statement.

"We are developing our global heavy oil portfolio and strengthening our marketing position in North America."

The acquisition will give Statoil access to more than 1,100 square kilometres of oilsands leases in the Athabasca region of northern Alberta. For Statoil, the acquisition is the latest in a series of foreign ventures.

Statoil has holdings in 30 countries.
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