• Crude oil for July delivery rose $4.33 to $133.38 a barrel yesterday (Wednesday) after U.S. stockpiles showed an unexpected decline. Supplies fell 5.32 million barrels to 320.4 million last week, the biggest drop in four months, according to the Energy Department.

• Time Warner Inc. (TWC) announced yesterday (Wednesday) that it plans to spin off its cable-television unit and receive a $9.25 billion windfall in the transaction, Bloomberg reported. The move will let the company focus on its cable network, entertainment, and publishing operations rather than distribution – something investors have been clamoring for.

• The Boeing Co. (BA) said yesterday (Wednesday) that it would lay off 750 Southern California employees after losing a lucrative military satellite contract and seeing a dip in demand for the technology, the Associated Press reported. The cuts involve engineering staff at plants in El Segundo and Seal Beach.

• Swiss bank UBS AG (UBS) yesterday (Wednesday) sold subprime and other mortgage-based securities to a newly created investment fund run by U.S. asset manager BlackRock Inc. (BLK) for $15 billion, the Associated Press reported. The securities had a nominal value of $22 billion but have been listed with a book value of $15 billion as of March, according to UBS.

• American Airlines, a subsidiary of AMR Corp. (AMR), announced yesterday (Wednesday) that it was taking drastic measures in the face of escalating oil and fuel prices, Reuters reported. The world’s largest airline will cut thousands of jobs, reducing capacity by 12%. American will also charge $15 for passengers’ first checked bag. AMR stock dropped 25% with a $1.98 decline to close at $6.22.

• Shares of corporate debt rating agency Moody’s Corp. (MCO) dropped over 15% yesterday (Wednesday) after a computer glitch mistakenly issued “Aaa” ratings for Constant Proportion Debt Obligations, commonly referred to as CPDOs, Reuters reported. Moody’s stock lost $6.99 to close at $36.91 yesterday (Wednesday).

• The U.S. House of Representatives passed legislation yesterday (Wednesday) that would allow the Department of Justice to sue the Organization of Petroleum Exporting Countries (OPEC) for limiting oil supply and price-fixing, Reuters reported. The measure still needs to be approved by the Senate, but President Bush has already threatened to veto the bill.

• Inflation fears were blamed for the Bank of England’s 8-to-1 decision to hold interest rates steady yesterday (Wednesday), MarketWatch reported. “For most members, a reduction in Bank Rate this month would make it more difficult to keep inflation expectations in line with the target,” the minutes said. For April, consumer inflation clocked in at 3%, above the BOE’s preferred 2% target.

Source: Global Investing Roundups:Thursday, May 22nd, 2008

No active discussions have been held between the two companies, but Microsoft has been on the prowl since withdrawing its bid for Yahoo Inc. (YHOO).

Last year, Microsoft bought a 1.6% stake in Facebook Inc. for $240 million, has expressed an interest in buying the site over the past three years. But Facebook’s Chief Executive, Mark Zuckerberg, has been reluctant to sell, opting instead to work towards an initial public offering.

Facebook, with more than 70 million users, drew 109.2 million visitors in March, according to comScore Inc., an improvement of 240% from a year ago. The company expects between $300 million and $350 million in revenue this year, up from $150 million last year, the Journal reported.

A tie-up with Facebook is one of the options Money Morning previously identified as an avenue Microsoft could pursue as a means of drawing consumer traffic and advertisers to its online services.

The company may also look to Time Warner Inc.’s (TWX) AOL or News Corp.’s (NWS) Fox Interactive Media business units. Many analysts have also suggested Yahoo and Microsoft might return to the bargaining table. Legg Mason Inc. (LM) fund manager Bill Miller is one of those analysts.

“I’m more puzzled by Microsoft’s not going up to $37 than Yahoo’s wanting to walk away,” Miller said told Bloomberg News. “If they want to be a viable competitor, I would expect them to come back.”

Microsoft withdrew its bid for Yahoo Saturday after the country’s second largest web portal turned down its $33 a share, $47.5 billion offer.