• Oil prices extended their decline yesterday (Tuesday), falling $10 a barrel in a dramatic, two-day slide as the outlook for U.S., as well as global, energy demand grew weaker. Light, sweet crude for October delivery fell $4.56 to settle at $91.15 a barrel on the New York Mercantile Exchange, after earlier falling as low as $90.51 – the lowest level since Feb. 8.

• The Food and Drug Administration is closing U.S. borders to more than 30 generic drugs made by India’s Ranbaxy Laboratories Ltd. (OTC: RBXLY), citing poor quality in two of the company’s factories, The Associated Press reported. However, Ranbaxy can continue selling medicines made at any of its other factories.

• Best Buy Co. (BBY) said yesterday (Tuesday) that its second-quarter profit fell 19%, to $202 million, despite a 12% jump in revenue. Same-store sales jumped 4.2% and total revenue came in at $9.8 billion. A sluggish U.S. economy will continue to challenge the retail giant the second half of the year.

• Bristol-Myers Squibb Co. (BMY) said yesterday (Tuesday) that it might drop its $4.5 billion offer for the 83% of ImClone Systems Inc. (IMCL) it doesn’t already own. “There are situations in which we are willing, and we’ve disclosed that, we’re willing to walk away,” Jean-Marc Huet, Bristol’s Chief Financial Officer, said response to a question at a pharmaceutical investors conference, The Associated Press reported.

• Citigroup Inc. (C) Chief Executive Officer Vikram Pandit sent an e-mail to all 300,000 Citi employees reassuring them of the bank’s stability during this troubled time in the financial sector. “We can all be proud to represent Citi, an extraordinary institution, which has and will continue to play a critical role in global financial markets,” the e-mail read, BusinessWeek reported.

• General Motors Corp. (GM) officially unveiled its plug-in hybrid car the Volt yesterday (Tuesday) as part of the automaker’s 100th anniversary celebration. GM hopes the Volt will play a key role as it shifts to a more fuel-efficient line-up away from its previous reputation of large trucks and high horsepower vehicles, MarketWatch reported.

• Adobe Systems Inc. (ADBE) managed to beat Wall Street analyst expectations despite a slip in fiscal third-quarter profit. Net income for the San Jose, Calif.-based software maker for the period ended Aug. 29 dropped to $191.6 million, or 35 cents a share, compared with $205.2 million, or 34 cents a share, in the same period a year prior, MarketWatch reported. “We’re particularly impressed with Adobe’s profitability levels, which were higher than expected,” said Edward Jones analyst Andy Miedler.

• Constellation Energy Group Inc. (CEG) shares plunged $17.23, a decline of over 35%, to close at $30.76 yesterday (Tuesday) on investor concerns that banks would pull the utility’s credit lines, Reuters reported. The cost to insure Constellation’s long-term debt soared 60%, a record high, according to Markit Intraday.

Source: Global Investing Roundups Wednesday, September 17th, 2008

• The U.S. Federal Reserve released its Beige Book yesterday (Wednesday), a look at the economic conditions in the central bank’s 12 regions. Overall economic activity was slower in April and May. “Three Districts described economic activity as softer, weaker, or lower, with an additional four Districts reporting slower, sluggish, or modest economic growth. The remaining five Districts of Philadelphia, Cleveland, Atlanta, St. Louis, and San Francisco described activity as stable or little changed in recent weeks,” the report read. While it is clear the economy is slowing, it has yet to experience a true contraction, clearing the way for the Fed to intensify its focus on inflation rather than recession.

• Japanese drugmaker Daiichi Sankyo Co. said it will buy a controlling stake (50.1%) of India’s biggest pharmaceutical company, Ranbaxy Laboratories Ltd., (OTC:RBXLY) for up to $4.6 billion, Bloomberg reported. The addition of the fast-growing generic-brand company reflects the shifting tides in the pharmaceutical industry, as brand-medicine providers are losing considerable market share to generic drug providers.

• As retail sales have soured in the past year, U.S. liquidator retailer Big Lots Inc.’s (BIG) Chief Executive Steve Fishman said the company is “highly motivated” to expand its stores by up to one-third, Reuters reported. The Columbus-based company currently has 1,353 in 47 states, and expansion is contingent on the real estate market cooling down for better location prices, Fishman said.

• U.S. corn futures climbed more than 4% to a record high for the fifth consecutive trading session yesterday (Wednesday) as flooding expanded in the Midwest, the Associated Press reported. July 2009 Corn contracts soared to a record $7.56-1/4, surpassing the record of $7.35 set in during Asian trading hours. By midday, U.S. corn for July 2008 delivery had hit $7.03-1/4 per bushel. Corn prices on the Chicago Board of Trade have surged 80 percent over the past year.

• Caterpillar Inc. (CAT) yesterday (Wednesday) declared a regular cash dividend of 42 cents per share, a 17% increase to its prior payout of 36 cents per share, The Associated Press reported. The dividend is payable Aug. 20 to stockholders of record on July 21.

• Four Russian billionaires who co-own the troubled joint venture TNK-BP will take legal action against their partner BP PLC (BP) in two separate cities – Stockholm and Moscow, Reuters reported. The decision comes in the wake of failed discussions concerning the fate of TNK-BP President Robert Dudley. The Russians said they decided to act after BP failed to agree to a set of specific demands by a Wednesday deadline. One of these was that the venture’s American manager should be fired.

• Shares of Martha Stewart Living Omnimedia Inc. (MSO) dropped 6% after President Chief Executive Officer Susan Lyne announced her resignation yesterday (Wednesday). Two high-level executives will replace her, MarketWatch reported. The stock lost 48 cents to close at $7.50.

• Office supply giant Staples Inc. (SPLS) has finally come to an agreement with Corporate Express NV (ADR: CXP) to purchase the Dutch firm for $4.8 billion. Corporate Express Chief Executive Officer Peter Ventress will become president of Staples International, a new position that will oversee Staples’ business outside of the United States and Canada. He will report to Ron Sargent, Staples’ president and CEO, The East Bay Business Times reported.

Source: Global Investing Roundups: Thursday, June 12th, 2008