On Monday December 20, 2010, 6:15 pm EST
US gas demand should fall
for good after '06 peak
NEW YORK (AP) -- After
seven decades of mostly uninterrupted growth, U.S. gasoline demand is at the
start of a long-term decline. By 2030, Americans will burn at least 20 percent
less gasoline than today, experts say, even as millions of more cars clog the
roads.
The country's thirst for
gasoline is shrinking as cars and trucks become more fuel-efficient, the
government mandates the use of more ethanol and people drive less.
This isn't the first time
in U.S. history that gasoline demand has fallen, at least temporarily. Indeed,
the Great Recession was the chief reason demand fell sharply in 2008.
But this time looks different.
Government and industry officials -- including the CEO of Exxon Mobil -- say
U.S. gasoline demand has peaked for good.
New govs take office amid
historic budget crisis
NEW YORK (AP) -- Twenty-six
states elected new governors last month -- 17 Republicans, eight Democrats and
one independent -- and now they are going to have to reconcile their principles
and campaign promises with some harsh fiscal realities: This is the worst
budget climate for the states in at least a generation.
Cumulatively, the states
face budget shortfalls of nearly $140 billion next year, according to the
Center on Budget and Policy Priorities, a Washington think tank. To make
matters worse, billions in aid to states from the federal government's $800
billion stimulus plan is set to dry up early next year.
Stocks end flat as light
volume marks holiday week
NEW YORK (AP) -- Low
trading volumes and a lack of economic reports kept stocks confined to a narrow
range Monday. Indexes finished mixed and bond yields were barely changed.
American Express Co. had
the largest move of the 30 stocks that make up the Dow Jones industrial
average. The card issuer fell 3.4 percent to $42.50 after Stifel Nicolaus
downgraded the company. New rules proposed by the Federal Reserve could limit
fees the company charges merchants.
Aloca Inc. led the Dow
index with a 1.4 percent gain to $14.77.
FCC poised to adopt network
neutrality rules
WASHINGTON (AP) -- The head
of the Federal Communications Commission has enough support to pass
controversial new rules that will prohibit phone and cable companies from
discriminating against or favoring Internet traffic flowing over their
broadband networks.
More than a year after FCC
Chairman Julius Genachowski pledged to put in place so-called "network
neutrality" regulations, the agency is poised to adopt those rules at a
meeting on Tuesday.
Although the two
Republicans who sit on the five-member commission are firmly opposed to the
plan, Genachowski's two Democratic colleagues have both said they will vote to
let the proposal pass. Those two Democrats, Mignon Clyburn and Michael Copps,
have both said they still have reservations about the rules, however.
Adobe 4Q earnings beat
Street, as does outlook
NEW YORK (AP) -- Software
maker Adobe Systems Inc. on Monday posted earnings for its latest quarter that
exceeded analyst expectations, and it provided a rosy outlook.
The maker of Photoshop,
Acrobat and Flash software earned $269 million, or 53 cents per share, in the
fiscal fourth quarter, which ended Dec. 3. In the same period last year, it
posted a loss of $32 million, or 6 cents per share, weighed down by tax effects
and restructuring costs.
Adjusted earnings were 56
cents per share in the latest quarter, surpassing the average forecast of 52
cents per share among analysts surveyed by Thomson Reuters.
AT&T buys $1.93B worth
of spectrum from Qualcomm
NEW YORK (AP) -- AT&T
Inc. will buy $1.93 billion worth of wireless spectrum from Qualcomm Inc. to
add capacity to its forthcoming high-speed data network, the companies said
Monday.
The purchase will allow
AT&T, the second largest cell phone company in the U.S., to bolster its
fourth-generation, or "4G" network, whose higher speeds will make
loading video and websites on phones faster. AT&T already has spectrum close
to the band it's buying from Qualcomm, and has been planning to use it for 4G
services starting next year.
Qualcomm, based in San
Diego, has used the spectrum for its FLO TV service, which allows subscribers
to watch 10 to 15 channels of live television on cell phones. Qualcomm will
shut down the service in March because of weak interest from consumers.
Medtronic CEO William
Hawkins to retire in April
WASHINGTON (AP) --
Medtronic said Monday that Chairman and CEO William A. Hawkins will step down
in April after three years leading the world's largest medical device
manufacturer.
The announcement took Wall
Street by surprise, given Hawkins' short time on the job and relatively young
age. But given the company's sluggish performance in recent years, analysts mostly
affirmed the board of director's decision to seek new leadership.
Under Hawkins' leadership,
shares of the Minneapolis-based company have declined nearly 30 percent.
Winter disruptions turn
travel bitter and chaotic
LONDON (AP) -- The
Christmas travel season turned angry and chaotic Monday as British officials
struggled to clear snow and ice that paralyzed rail and air links and spawned
cancellations and delays stranding thousands around the world.
More than 48 hours after
Britain's last snowfall, some furious passengers with boarding passes for
Monday flights were not even allowed into London's Heathrow Airport. Inside,
piles of garbage grew and some people slept on terminal floors.
Other travelers waited in
the cold for up to six hours to get inside London's St. Pancras train station,
where they had to wait still longer for Eurostar trains to mainland Europe.
Facebook's CEO visits
China's top search engine
BEIJING (AP) -- Facebook
CEO Mark Zuckerberg toured the offices of China's top search engine Monday
during a visit that has sparked speculation the social networking magnate is
looking for business opportunities in the world's largest Internet market.
Facebook is blocked on the
mainland, but Zuckerberg has expressed a business interest in China and has
studied Mandarin.
Photos of Zuckerberg's
visit to Baidu Inc. were quickly posted online.
Higher pump prices may
linger into 2011
Those stubbornly high gas
pump prices might seem like an unwelcome house guest who overstays his welcome,
come January.
Drivers in many states
already pay at least $3 a gallon for regular and analysts don't expect any
relief soon. That's because crude oil has hovered between $83 and $89 a barrel
since Thanksgiving.
The national average for
regular gasoline was $2.98 a gallon on Monday, according to the Energy
Department's Energy Information Administration. That's about the same as a week
ago and more than a dime higher than a month ago. A year ago the average was
$2.59 a gallon.
By The Associated Press
The Dow Jones industrial average
fell 14, or 0.1 percent, to 11,478. The S&P 500 index rose 3, or 0.3
percent, to 1,247. The Nasdaq composite index rose 7, or 0.3 percent, to 2,650.
Benchmark oil for February
delivery rose 77 cents to $89.37 a barrel on the New York Mercantile Exchange.
Natural gas for January
delivery rose 17.1 cents to settle at $4.129 per 1,000 cubic feet.
In other Nymex trading in
January contracts, heating oil added 1.58 cents to settle at $2.4895 a gallon
and gasoline futures gained 6 cents to settle at $2.3778 a gallon.
In London, Brent crude rose
$1.07 to settle at $92.74 a barrel on the ICE Futures exchange.