Gas prices: Five-year low and falling

New York (CNNMoney.com) -- Gas prices fell for the ninth consecutive day, according to a survey of credit card swipes at service stations across the nation released on Sunday.

The national average price dropped for its ninth consecutive day to $1.627 a gallon, down 0.3 cents from the previous day, according to the motorist group AAA.

The national average last hit close to the current price on February 5, 2004, when it averaged at $1.627.

Prices are down 60% from the record high of $4.114 a gallon touched on July 17.

Gas remains is below $2 in all 48 contiguous sates and the District of Columbia, according to AAA. The highest average gas price was in Alaska ($2.52), while the cheapest was found in Missouri ($1.44).

The AAA figures, compiled by Oil Price Information Services, are state-wide averages based on credit card swipes at up to 100,000 service stations across the nation.

No Mega Millions jackpot winner

ATLANTA -- The jackpot in the multistate Mega Millions lottery drawing grew to $37 million for Tuesday's drawing.

None of the tickets sold for Friday's $29 million drawing matched all five lotto numbers and the Mega Ball.

There were no second-prize winners, but one ticket matched four of the five lotto numbers, plus the Mega Ball number, winning $10,000.

The winning numbers from Friday's drawing were: 6-19-29-33-37. The Mega Ball number was 31.

Asian Stocks Gain on Takeover Speculation; Russia Shares Gyrate

(Bloomberg) -- Asian stocks gained for a second day, led by technology companies, on speculation takeovers and higher memory-chip prices will help the industry overcome slowing economic growth. Russian shares swung between gains and losses.

AU Optronics Corp., Taiwan’s largest liquid-crystal-display maker, climbed 2.5 percent after saying it was open to a merger. Hynix Semiconductor Inc., the world’s second-largest maker of computer memory, jumped 3.1 percent as it trimmed investment plans. Nikon Corp., Japan’s largest maker of steppers for semiconductor production, rose 7.1 percent. India’s Reliance Petroleum Ltd. surged 6.7 percent after it started processing crude oil at a new refinery.

The MSCI Asia Pacific Index added 0.5 percent to 87.59 as of 7:52 p.m. in Tokyo, paring the first weekly decline in three. Markets were closed in Australia, Hong Kong, New Zealand and the Philippines for holidays. Yesterday and today have been Japan’s slowest full trading days in the past five years.

“We’re going to see lot of merger and acquisition activities as restructuring goes on at companies that are really sensitive to the economic slowdown,” said Kim Yong Tae, who helps manage about $2.3 billion at Yurie Asset Management Co. in Seoul. “Chipmakers continue to reduce oversupply and that’s positive for the industry.”

About eight stocks rose for every five that retreated on MSCI’s Asian index, even as government reports showed Japan’s recession deepened in November and China’s central bank governor called for more measures to boost consumer spending. Japan’s Nikkei 225 Stock Average gained 1.6 percent, while China’s CSI 300 Index slipped 0.5 percent.

Simultaneous Recessions

Russia’s Micex Index was little changed at 628.04 as rising metals prices offset the ruble’s decline and speculation the government isn’t buying shares as actively as it has in the past two months.

The U.S. stock market resumes trading today after yesterday’s Christmas holiday. U.S. stocks climbed for the first time in three days on Dec. 24 as consumer spending and orders for durable goods topped economists’ forecasts, easing concern that the recession will cause corporate revenue to plummet.

Stocks worldwide have plunged in 2008, with the MSCI Asia Pacific heading for its worst year on record, as the collapse of the American housing market pulled the U.S., Europe and Japan into their first simultaneous recessions since World War II. Companies on the MSCI gauge are valued at an average 13 times estimated profit, more than a fifth below the level at the start of this year.

“I don’t think you can simply say all the bad news has been discounted by the market,” said Koichi Ogawa, chief portfolio manager at Tokyo-based Daiwa SB Investments Ltd., which manages $28 billion. “We’re still going to see more profit forecast downgrades.”

‘Open-Minded’

The financial and economic turmoil has prompted governments including the U.S., China and Japan to slash interest rates and announce spending packages. Thai Prime Minister Abhisit Vejjajiva today pledged 300 billion baht ($8.6 billion) to help counter a slump in Southeast Asia’s second-largest economy.

Six of the MSCI Asia Pacific Index’s 10 groups rose today.

AU Optronics gained 2.5 percent to NT$22.55. The company will consider all proposals beneficial to shareholders, spokeswoman Yawen Hsiao said yesterday. Chi Mei Optoelectronics Corp., AU’s closest rival, climbed 3 percent to NT$10.30 after saying it’s “open-minded” to mergers and acquisitions.

Flat-panel makers also rose after Premier Liu Chao-shiuan said Taiwan will help them overcome the economic slowdown.

Elpida Memory Inc., Japan’s largest computer-memory chipmaker, advanced 3.8 percent to 517 yen. Yukio Sakamoto, the company’s chief executive, said Elpida has begun merger talks with three Taiwanese semiconductor companies to counter a glut that’s threatening to widen industry losses.

Solar Subsidies

Oversupply has caused the price of the benchmark DRAM chip to tumble as much as 69 percent this year, according to Dramexchange Technology Inc., Asia’s biggest spot market.

Hynix gained 3.1 percent to 6,930 won in Seoul, while Nikon added 7.1 percent to 1,072 yen. Hynix said on Dec. 24 its investments will likely total 491 billion won ($375 million) during the final three quarters of the year, compared with a previous plan of 646 billion won.

Reliance Petroleum surged 6.7 percent to 84.75 rupees after it began processing crude oil at the new refinery located in the western state of Gujarat.

Ulvac Inc., a maker of solar-cell manufacturing equipment, jumped 8.2 percent to 1,335 yen in Tokyo, adding to yesterday’s 19 percent advance. The government said on Dec. 24 it will provide funds to people installing solar panels on their homes.

Dowa Holdings Inc., a Japanese metal refiner and recycler, rose 3.7 percent to 311 yen after saying it will repurchase 4 percent of its stock. Nitto Boseki Co., a textiles company, surged 17 percent to 149 yen, leading gains on the Nikkei, after saying it will repurchase 17 percent of its outstanding shares.

JFE Holdings Inc., the world’s third-largest steelmaker, slumped, declined 5.7 percent to 2,335 yen. The company, whose shares have lost 58 percent this year, plans to deepen production cuts as demand from automakers and construction companies evaporates.

New York Times courts ex-adman on Red Sox, Globe-FT

NEW YORK, (Reuters) - The New York Times Co (NYT.N: Quote, Profile, Research) has begun courting former advertising executive Jack Connors as a potential bidder to buy its stake in the Boston Red Sox team and possibly The Boston Globe newspaper, the Financial Times reported on Friday, as the publisher tries to raise cash to support its struggling business.

The Times's 17.5 percent stake in New England Sports Ventures also has attracted the attention of Peter Nicholas, chairman and co-founder of medical devices maker Boston Scientific (BSX.N: Quote, Profile, Research), the FT reported on Friday, citing a source familiar with the matter.

The Times, which has a $400 million credit line coming due next May, could raise $200 million to $225 million if it sells the stake, the FT reported. Analysts and bankers previously told Reuters that the stake could be worth about $200 million.

The publisher, which is controlled by the Ochs-Sulzberger family, needs to raise money as it faces a debilitating drop in advertising revenue, something that is affecting nearly all U.S. newspaper publishers.

Connors, a former Boston advertising executive, was part of a group two years ago that was interested in buying the Globe. The group included former General Electric Co (GE.N: Quote, Profile, Research) Chief Executive Jack Welch. The Times rejected that offer.

At the Time, the New York Times Co according to the FT and other news outlets, could have sold the Globe for $550 million to $600 million. But a recent report from Barclays estimated that the Globe could be worth about $20 million.

The Times owns other properties, including the online encyclopedia About.com and several smaller daily newspapers. Selling papers has become more difficult than ever because of their falling ad revenue. Their valuations are at historic lows, but most bidders regard them as toxic because of their low prospects for growth.

Potential bidders, which the FT did not name in its report, are considering the idea of merging the Globe with the Ottaway newspaper chain -- small daily papers owned by Wall Street Journal publisher Dow Jones & Co and now part of Rupert Murdoch's News Corp (NWSa.N: Quote, Profile, Research).

The Ottaway papers are run by the recently hired Patrick Purcell, who owns and publishes the Globe's rival daily in Boston, the Herald. Under the scenario, that paper would be shut down, the FT reported.

News Corp is not in such discussions, said a source close to News Corp who was not authorized to discuss the company's plans.

Connors, Purcell and Nicholas could not be reached for comment. A New York Times spokeswoman declined to discuss the Times's plans for the Red Sox stake and the Globe.

China shares edge lower amid gloomy profit outlook

SHANGHAI, China (AP) — Chinese stocks edged lower Friday as early gains succumbed to gloom over earnings prospects for many listed firms.

The benchmark Shanghai Composite Index edged down 0.9 point, or just 0.05 percent, to 1,851.52. The Shenzhen Composite Index of China's second, smaller market fell 0.6 percent to 569.38.

The Shanghai index gave up 8.3 percent for the week as investors reckoned with a slew of bad economic news and expectations for lower earnings in the current and next quarters.

With billions of newly tradable shares due to hit the market as lockup periods expire in coming weeks, there was little cause for optimism, analysts said.

"The market's performance today reflected investors' moods. People are worried about the likely profit slowdown in early 2009," said Xu Yan, a strategist at Shenyin Wanguo Securities, in Shanghai.

Trading was thin as many investors sat on the sidelines.

PetroChina, the Shanghai benchmark's heaviest weighted share, gained 0.5 percent to 10.19 yuan. Some banks and insurers also rose on bargain hunting. But those gains were outweighed by declines in property shares.

China Vanke Ltd., China's biggest property developer, lost 2.5 percent to 6.53 yuan while Poly Real Estate dropped 3.1 percent to 14.79 yuan.

Yunnan Aluminum fell 4.3 percent to 5.12 yuan as investors cashed in Thursday's gains from news of planned government purchases for national stockpiles.

In currency dealings, China's yuan was unchanged at 6.8485 to the U.S. dollar.

Japan retail bond market booms amid turmoil

TOKYO,(Reuters) - The global credit crisis may be taking the wind out of most financial markets but in Japan the retail corporate bond market has started to boom.

Blue-chip companies spurned by portfolio-savaged institutional investors are turning to individuals, who in turn are attracted by the bonds -- seen as safer than stocks, with steady returns and without foreign exchange risks.

Firms tapping the market for the first time include Mitsubishi Corp (8058.T), Japan's biggest trading house, with its first yen-denominated retail bond worth 100 billion yen ($1.1 billion), as well as Mizuho Bank, the core bank for Mizuho Financial Group (8411.T) and Daiwa Securities Group Inc (8601.T).

In December alone, seven companies issued retail corporate bonds totalling nearly 600 billion yen, 27 times the amount a year ago.

All of the seven companies are rated at least BBB plus -- investment grade with little risk of default.

"Retail corporate bond issuance is expected to stay robust, and the current high pace should continue for a while," said Tetsuya Miura, bond strategist at Shinko Securities.

"Both issuers and distributors of retail bonds will need to attract individual investors' money as long as Japanese capital markets are not functioning well."

Japan's institutional investors have become exceptionally leery of taking on more risk, burned by debt defaults from domestic real estate firms and defaults on yen bonds from U.S. investment bank Lehman Brothers and Iceland's Kaupthing Bank.

But to individual investors, who have watched Tokyo stocks plummet 43 percent this year and the yen's rise to 13-year highs against the dollar erode the lure of overseas assets, domestic corporate bonds have suddenly become more attractive.

"Retail bonds sell well because investors love the blue-chip names," said Miura.

The boom in retail bonds boosted the total amount of overall corporate debt issuance to a decade high of 1.3 trillion yen in December, sharply higher than 315 billion yen in November and 352 billion yen in October.

But analysts said the jump in retail bonds was not expected to kick-start a recovery for the overall primary bond market, with institutional investors unlikely to regain their appetite for risk amid a global recession and financial turmoil.

"Is the credit crunch going away? Certainly not," said Toshiyasu Ohashi, head of credit research at Daiwa Securities SMBC.

"Only firms with very high credit ratings are embarking on issues at the moment, so the primary market has not yet normalised." All wholesale corporate bonds issued in December had an A rating or higher, with the majority rated AA. (Additional reporting by Takefumi Ito and Naoyuki Katayama; Editing by Edwina Gibbs)

Oil Prices Plunge To Nearly $35 On Record High Gasoline Inventories

New York, NY (AHN) - Crude oil futures tumbled for the third straight session on Wednesday, hitting $35 a barrel, as the markets entered Christmas holiday week.

Oil rates plunged by as much as 9.3 percent to close below $36 a barrel after the U.S. government released data on crude oil stockpiles for the last week, which remained high.

Crude has dropped by 76 percent through Wednesday from its peak level at $147.27 on July 11. Rising unemployment rates and weakening consumer spending have spread to gasoline as many drivers across the U.S. are driving less and have limited the amount of gasoline they buy.

A light sweet crude-futures barrel for February delivery moved down by $3.63, to close at $35.35 a barrel in electronic trading on Wednesday. Oil prices hit new record low level of $35.15 a barrel, just before the market closed early for the holiday.

On Tuesday, the contract continued the fall and dropped by 93 cents to close at $38.98 a barrel in overnight trading on the New York Mercantile Exchange as a report showed that the U.S. home prices slumped.

The market analysts are projecting that the price of oil is likely to fall below $25 a barrel next year and gas prices could drop lower than $1 in most regions of the markets as the recession expands to China.

Merrill Lynch Commodity Strategist Francisco Blanch, an energy analyst and CEO, said in a report on Thursday that demand is expected to consistently fall next year as slowdown in economy continues.

"A temporary drop below $25 a barrel is possible if the global recession extends to China and significant non-OPEC cuts are required," Blanch wrote in a note to their clients.

Blanch added, "In the short run, global oil- demand growth will likely take a further beating as banks continue to cut credit to consumers and corporations."

The predictions of the brokerage firm have been consistent with the fall in oil prices. In the month of October the company's analysts had projected that the oil rates are likely to drop below $50 a barrel.

Prices started dropping early trading session on Wednesday as the U.S. Energy Department report showed a larger-than-anticipated rise in the country's supplies of gasoline and distillate fuel, including heating oil and diesel.

The report said gasoline stockpiles jumped by 3.34 million barrels to 207.3 million barrels last week, which is more than the market analysts had projected to rise by 750,000 barrels.

Distillate inventories moved up by 1.81 million barrels to 135.3 million barrels. The crude supply declined by 3.1 million barrels last week.