Business news in brief

QUOTE OF THE DAY

“More than 200 Brussels staff earn more than I do. Brussels continues to exist as if it’s in a parallel universe.”

David Cameron,

British prime minister, on proposed spending cuts for European Union institutions Article, 1DCorps cuts flow on Missouri River

ST. LOUIS - The Army Corps of Engineers began reducing the flow from a Missouri River reservoir on Friday, a move expected to worsen low-water conditions on the Mississippi River and potentially shut down barge traffic within weeks.

One result of this year’s drought, the worst in decades, has been a drop in water levels on both the Mississippi and Missouri rivers.

The Corps of Engineers office in Omaha, Neb., announced earlier this month plans to reduce the outflow from the Gavins Point Dam near Yankton, S.D.

Corps spokesman Monique Farmer said plans call for a gradual reduction to 12,000 cubic feet per second by Dec. 11.

The cut in flow comes despite opposition from the governors of Missouri and Illinois and 15 U.S. senators whose states sit along the Mississippi River. Scott Holste, a spokesman for Missouri Gov. Jay Nixon, said the office never received a reply to a letter Nixon sent Army Assistant Secretary Jo-Ellen Darcy asking that the Corps delay plans to reduce the Missouri River flow.

The Mississippi is nearing historic lows between St. Louis and Cairo, Ill. Barges are already required to carry lighter loads and the middle of the river could be closed to barge traffic if the water level at St. Louis dips below minus 5 feet.

It was at minus 0.45 feet Friday.

  • The Associated Press

Gas rigs up by 11, oil rigs down by 2

HOUSTON - The number of rigs actively exploring for oil and natural gas in the U.S. rose this week by eight, to 1,817.

Texas-based oil-field services company Baker Hughes Inc.

reported that 1,388 rigs were exploring for oil and 428 were searching for gas. One was listed as miscellaneous. A year ago, Baker Hughes counted 2,000 rigs.

The gas rig count increased by 11 to 428 this week, the biggest gain since Oct. 7, 2011, according to Baker Hughes. Oil rigs declined by two to 1,388, the first drop in three weeks.

Miscellaneous rigs, which primarily drill for geothermal energy, dropped by one to one.

Of the major oil- and gas-producing states, Louisiana gained five rigs, Pennsylvania gained four, Texas gained two, and Alaska and New Mexico each gained one.

California lost three rigs while Arkansas, Colorado and Oklahoma each lost one. North Dakota, West Virginia and Wyoming were unchanged.

The rig count peaked at 4,530 in 1981 and bottomed at 488 in 1999.

Business confidence up in Germany

BERLIN - German business confidence rose unexpectedly in November after six straight declines, a closelywatched survey showed Friday, raising hopes that Europe’s largest economy can continue to weather the financial crisis.

Munich’s Ifo institute said its key business climate figure rose to 101.4 points in November from 100 in October.

Economists had been predicting a modest drop to 99.5. The increase in the headline index came on the back of increases in the measures about the present and the future.

“The latest positive news from business surveys clearly increased the odds for a real turnaround at the change of the year,” UniCredit economist Alexander Koch said.

However, he cautioned that “the fog of uncertainty remains unusually dense and downside risks are high.”

Germany’s economy, Europe’s biggest, has recovered strongly from its deep recession in 2008-09 despite the huge debt problems on its doorstep. However, there have been recent signs that its export-driven economy is beginning to slow amid weakening demand from other countries from within the European Union, though exports outside the bloc have remained strong.

Earlier this month, the German government’s panel of independent economic advisers forecast that the economy will avoid falling back into recession and will instead grow by 0.8 percent this year and next.

  • The Associated Press

Cyprus bailout talks progress ‘good’

NICOSIA, Cyprus - Cyprus’ potential international creditors said Friday that they have made “good progress” in negotiations on a possible bailout for the crisis-hit country.

Despite earlier hopes that a deal was imminent, representatives from the so-called troika of the European Commission, the European Central Bank and the International Monetary Fund said long-distance talks would continue on securing an agreement. Once an agreement has been reached, Cyprus will become the fourth member of the 17-strong group of European Union countries that use the euro to receive international help with its debts.

The troika representatives said they are awaiting the preliminary results of an investigation into how much Cyprus’ ailing banks will need to shore up their finances.

This will help determine the size of a bailout that won’t push the country’s debt to unsustainable levels.

“Discussions are expected to continue from respective headquarters with a view to making further progress toward a potential program,” a troika statement said.

Cyprus’ Finance Minister Vassos Shiarly said the government has reached an “in-principle agreement” with the troika on the terms of the bailout deal.

The exact figure on the banking sector’s needs is crucial, given its large size relative to the Cypriot economy.

Credit ratings agency Fitch said Friday that the banks’ assets are worth four times the country’s $22.5 billion economy.

  • The Associated PressGerman Financial Times to close

BERLIN - The publisher of the Financial Times’ German offshoot says production will be stopped shortly and some 320 employees will lose their jobs.

The Financial Times Deutschland, which has a circulation of about 100,000, was launched at the height of the Internet boom in 2000 but was never profitable.

Hamburg-based publisher Gruner + Jahr said in a statement Friday it sees “no way” to continue publishing the loss-making paper beyond Dec. 7 amid further falling advertisement revenues.

The paper’s journalists first reported that the daily is “about to be stopped” after a board meeting Wednesday.

The publisher of the English-language Financial Times, Pearson PLC, sold its stake in the German paper in 2008, but it continued to appear on the same distinctive salmoncolored paper.

  • The Associated Press

Business, Pages 36 on 11/24/2012

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