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COLUMBUS, Ohio – Oil and gasoline prices continued a recession-defying march higher today, doubling in the past six months largely on optimism of a strengthening U.S. economy.

The predictions for just how high oil can reach this year, just like 2008, continue to creep upward just five months removed from crude priced around $32 per barrel.

Benchmark crude for July delivery rose US$1.23 to settle at $66.31 a barrel on the New York Mercantile Exchange.

The gasoline-pump panic of 2008 has yet to surface, but that's not to say there haven't been some double-takes.

Wholesale gasoline prices, which typically rise during this time of the year, are up a staggering 140 per cent since Christmas Eve. Retail gasoline prices have hit a national average of $2.467 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service. Pump prices are up 20 per cent just in the past month.

But a gallon of gas is still $1.485 below the price a year ago and that, at its heart, is why you are unlikely to see the same price spikes this time around.

In Canada, the price at the pump averaged C$1.009 per litre, up from 89.8 cents per litre a month ago, but down from $1.33 per litre a year ago, according to price-watching website GasBuddy.com.

Crude prices have spiked 30 per cent this month, enough to give anyone vertigo. But the pain is relative.

At this time last year, crude prices were brushing up against US$130.

While crude has risen fast through May, we're still around $66.

For gas prices to hit $3 a gallon, crude would need to go to about $100 a barrel, well above even the highest projections this year of $70 to $75, said Tom Kloza, publisher and chief oil analyst at Oil Price Information service.

Still many analysts, including Kloza, have been surprised by the run-up in gasoline.

"If you had asked a month ago if we would see a $2.50 national average, I would have said 'no."'

The jump in energy prices has not been fuelled by rising demand, but a belief that demand will rise at some point. That has created a lot of momentum in a market that does not have the fundamentals to support it payday loans no faxing.

With demand for gasoline running flat to slightly below last year, unemployment moving higher, and ample inventories and refinery capacity it is hard to see prices much higher from here, said Adam Sieminski of Deutsche Bank.

"We've climbed out of the depths, but it's still not growing on a year-over-year basis," he said.

Just like in 2008, however, the weakened U.S. currency is bringing billions of investments into oil markets. Because crude is priced in dollars, it gets a lot cheaper when the U.S. currency falls.

That points to another speculative bubble that many blame for record prices last summer, on Nymex and at the gas pump.

"It's more hope that fact," Sieminski said. "Investors think the economy has bottomed and possibly recovering and they're moving to assets they think will benefit from the economic recovery and that includes commodities generally and oil specifically."

Gasoline futures have been on a tear as well, even though the government reported again last week that demand for it has fallen.

Retail gasoline prices have followed as refiners, seeing consumers driving billions fewer miles, cut back on production.

In a potentially good sign for consumers, refiners ramped up production last week, according to government reports, even though they are still operating well below normal levels.

This comes at a time when American motorists, whether its because they've lost jobs or are worried about losing a job, are not driving as much. Industries are using far less fuel and natural gas.

The U.S. Commerce Department said today that the economy sank at a 5.7 per cent pace in the first quarter, worse than the 5.5 per cent decline analysts were forecasting.

That does not point to a market that will support a sustained run on prices.

In other Nymex trading, gasoline for June delivery rose 2.05 cents to settle at $1.931 a gallon and heating oil gained 4.05 cents to settle at $1.6419 a gallon. Natural gas for July delivery fell 12.2 cents to settle at $3.835 per 1,000 cubic feet.

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Time Warner unveiled plans Thursday to spin off AOL as an independent company, an end to the massive media marriage formed in January 2001.

"We believe that a separation will be the best outcome for both Time Warner and AOL," said Time Warner chief executive Jeff Bewkes, in a prepared statement.

The $111 billion merger between AOL and Time Warner was applauded at the time as a visionary attempt to meld old media with new media. But synergies between the two never materialized.

Time Warner’s (TWX, Fortune 500) stock has plunged nearly 80% since the merger. The company’s stock closed at $23 on Wednesday, down from $99.49 on Jan. 10, 2001, the day before the merger, adjusted for splits and dividends (see correction at end of story).

Time Warner currently owns 95% of AOL and plans to purchase the remaining 5% stake from Google (GOOG, Fortune 500).

During the past several years, as AOL has steadily lost subscribers for its dial-up Internet access business, it has made several attempts to focus on Internet advertising.

"Becoming a standalone public company positions AOL to strengthen its core businesses, deliver new and innovative products and services, and enhance our strategic options," said AOL chief executive Tim Armstrong, a former Google executive who took over in March.

Bewkes described the separation as "another critical step in the reshaping of Time Warner that we started at the beginning of last year, enabling us to focus to an even greater degree on our core content business no fax cash advance."

Hamilton Faber, analyst for Atlantic Equities, said the companies are better off going their separate ways. "I certainly do think that both companies will be better off as independent entities," said Faber. "Neither company will be detrimentally impacted by not being part of the same group."

In March, Time Warner completed the spinoff of Time Warner Cable.

Even with that and the break with AOL, Time Warner will remain one of the largest media companies in the world, with cable networks, magazines and a movie studio. It is also the parent of CNNMoney.com.

The company owns the networks CNN and HBO, as well as the Warner Brothers movie studio and a wide array of magazines, including Fortune, Time and Sports Illustrated.

Correction: According to the Time Warner corporate Web site, Time Warner’s stock price on Jan. 10, 2001 closed at $99.49. An earlier version of this story listed the closing price as $115.13.  

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DETROIT — General Motors Corp. will give the United Auto Workers up to 20 percent of its common stock, $6.5 billion of preferred shares and a $2.5 billion note to fund a trust that will take over retiree health care costs starting next year as part of an agreement the automaker made while it tries to reorganize outside of bankruptcy.

The union’s trust also will get a seat on GM’s new board of directors, although that seat will have to vote at the direction of the other independent directors. Plant-level union officials met in Detroit on Tuesday to hear details of the agreement that GM, the UAW and the government reached last week. Several local presidents said after the briefing that they voted unanimously to recommend that members approve the concessions when they vote today and Thursday.

Local UAW leaders say the health care trust fund agreement did not identify 14 factories that GM intends to close. Those are part of GM’s restructuring plan to be submitted to the government by a Monday deadline, said one official, who spoke on condition of anonymity because the details of the meeting have not been presented to union members cheap car insurance. The company did commit to reopening three closed assembly plants and one stamping factory if demand warrants, according to the summary sheet. Those factories were not identified.

Members of the Canadian Auto Workers union earlier this week approved wage reductions and other concessions in an attempt to allow GM to reorganize outside of bankruptcy court, but GM’s unsecured bondholders have resisted an offer to take a 10 percent stake in the company to wipe out $27 billion in debt. Analysts say it’s unlikely enough bondholders will approve the offer, meaning GM would still be forced into bankruptcy protection by Monday. GM’s bondholders have argued that the offer they’ve received gives them too small a stake for the amount they are owed.

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DETROIT — General Motors Corp. will give the United Auto Workers up to 20 percent of its common stock, $6.5 billion of preferred shares and a $2.5 billion note to fund a trust that will take over retiree health care costs starting next year as part of an agreement the automaker made while it tries to reorganize outside of bankruptcy.

The union’s trust also will get a seat on GM’s new board of directors, although that seat will have to vote at the direction of the other independent directors. Plant-level union officials met in Detroit on Tuesday to hear details of the agreement that GM, the UAW and the government reached last week. Several local presidents said after the briefing that they voted unanimously to recommend that members approve the concessions when they vote today and Thursday.

Local UAW leaders say the health care trust fund agreement did not identify 14 factories that GM intends to close. Those are part of GM’s restructuring plan to be submitted to the government by a Monday deadline, said one official, who spoke on condition of anonymity because the details of the meeting have not been presented to union members paydayadvance. The company did commit to reopening three closed assembly plants and one stamping factory if demand warrants, according to the summary sheet. Those factories were not identified.

Members of the Canadian Auto Workers union earlier this week approved wage reductions and other concessions in an attempt to allow GM to reorganize outside of bankruptcy court, but GM’s unsecured bondholders have resisted an offer to take a 10 percent stake in the company to wipe out $27 billion in debt. Analysts say it’s unlikely enough bondholders will approve the offer, meaning GM would still be forced into bankruptcy protection by Monday. GM’s bondholders have argued that the offer they’ve received gives them too small a stake for the amount they are owed.

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Patheon Inc. has asked the Ontario Superior Court of Justice to remove the board nominees of New York investment firm JLL Partners Inc. and stop the firm from voting its restricted voting shares acquired under its takeover bid.

"The special committee is taking this step to enforce Patheon’s rights and to continue to defend the best interests of all Patheon shareholders in response to JLL’s inadequate, opportunistic and coercive bid," Paul Currie, chairman of the special committee, said yesterday.

JLL recently extended its offer of $2 (U.S.) per share until June 1 cash loans. Shares in Patheon closed down four cents at $2.71 (Canadian) on the Toronto Stock Exchange yesterday.

JLL said last week it owned about 39 per cent of outstanding restricted shares of Patheon, or up to 57 per cent if it converts 150,000 preferred shares. It has argued its offer is fair and provides an opportunity for Patheon’s shareholders to get out of a thinly traded stock.

The Canadian Press

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Ontario Power Generation Inc. has confirmed that the anticipated cost of its massive tunnel project to boost hydroelectricity output at Niagara Falls's Adam Beck generating station has ballooned to $1.6 billion from $985 million.

In a financial report Friday, OPG also pushed back the expected completion date of the project to December 2013, from the original target of June 2010.

The disclosure came Friday as the provincial Crown power producer, formerly known as Ontario Hydro, reported it browned out to a loss of $9 million in the first quarter, down from year-earlier net income of $162 million.

“OPG's results were significantly affected by a reduction in electricity generation, higher fuel prices, and an increase in expenses related to planned maintenance outages at our nuclear generating stations,” said president and CEO Jim Hankinson.

As for the Niagara tunnel, OPG said the provincial Crown utility and the tunnel boring contractor are renegotiating the design contract with a revised cost and schedule as well as incentives to meet the new targets.

The Niagara tunnel project is the latest in a series of expansions to the 87-year-old Sir Adam Beck plant at Niagara Falls, one of Canada's oldest hydroelectric power plants. OPG said the tunnel boring machine has advanced nearly 3,800 metres through hard rock, about 37 per cent of the planned tunnel length.

In its earnings report, OPG said its generation in the January-March period was down 13 per cent at 25.6 terawatt-hours (trillion watt-hours).

Nuclear production faded by one TWh to 12.3 TWh, "primarily as a result of planned maintenance outages," OPG stated.

Hydroelectric production was flat at 9.0 TWh.

Meanwhile, revenues fell to $1 easy payday loans.48 billion from $1.56 billion.

Output from fossil-fuel stations sagged to 4.3 TWh, compared with 7.0 TWh a year ago, "primarily due to lower electricity demand as a result of Ontario's contracting economy, an increase in electricity production from other Ontario generators, and a significant reduction in natural gas prices compared to the cost of coal, which resulted in a displacement of coal-fired production."

The unfavourable impact of lower fossil and nuclear generation and higher fuel costs was partly offset by higher electricity rates.

At the Niagara hydroelectric expansion project, the boring machine had advanced 3,794 metres at March 31 – 37 per cent of the tunnel length. As a result of the geological complexities of the area, the machine "is now operating on a revised alignment that will minimize remaining excavation in the Queenston shale formatjion," OPG stated.

The utility and the contractor are renegotiating the contract to confirm the revised target cost and schedule.

Along with the quarterly results, OPG said it expects a preferred vendor will be chosen late this spring for a new two-unit nuclear plant at the Darlington site, 70 kilometres east of Toronto, already home to a four-unit Candu complex. OPG has started work on an environmental assessment and licensing.

The utility said Darlington operated at 99.9 per cent of capacity in the first quarter, but the Pickering A plant was at 42.4 per cent, "primarily due to planned outage maintenance work."

Pickering B worked at 84.9 per cent of capacity, down “marginally" from the first quarter of 2008.

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Boeing Co. leaders say that the U.S. military’s airlift needs are growing and that a Pentagon proposal to halt future orders for the C-17 Globemaster III cargo plane is premature.

Boeing, whose defense unit is headquartered in St. Louis, is trying to rally support for the C-17 on multiple fronts — arguing that ceasing production would erode the U.S. industrial base, costing thousands of jobs at Boeing plants and those of its main suppliers. But Boeing officials also emphasize the plane’s strategic value.

"Right now, since 9/11, the airplane has been flying at about a 15 percent higher rate than was anticipated," said Donald A. Anderson, Boeing’s C-17 program manager in St. Louis. "In addition, they’re talking about rebasing troops in the United States. They’re talking about an increase in the size of the Marines Corps and the Army.

"So it seems like the airlift requirements are growing. And you need airlifters to meet those needs."
Starting with Secretary of Defense Robert Gates’ announcement in early April and continuing through last week, the Pentagon has said it can get by with the 205 C-17s that are either in service or on order. The Air Force also uses the Lockheed Martin C-5 Galaxy to transport weapon systems, cargo and personnel to overseas locations.

Republican Sen. Christopher "Kit" Bond and Democratic Sen. Claire McCaskill, both of Missouri, have written letters supporting more orders of the C-17, and Machinists Union officials have traveled to Washington to show their support for a program that supports 900 jobs in St. Louis.

"This is high political theater," said analyst Richard Aboulafia of The Teal Group in Fairfax, Va. "The bottom line is I don’t think the line is threatened. But it is up to everybody from Department of Defense to Congress to Boeing to the unions to make it look as though it were."

The Defense Department has not sought funding for the C-17 in the last three years. But Congress has stepped in to add funding for more of the $202 million planes through supplemental defense appropriations bills.

Bond and Boeing officials have asked why Gates would halt C-17 orders while there is a study under way into the military’s future air-mobility needs. The results are expected this fall.

"But yet we’re making that decision now to stop the airplane," Anderson said. "So it seems somewhat premature credit scores."

Bond said shutting down production of the C-17 is a "dangerous gamble" and warned that the U.S. can’t afford to "lose the capability to transport safely our troops and equipment to anywhere in the world."

In a letter to President Barack Obama, McCaskill said the U.S. is "literally flying the wings off these planes," and added "this is not the time to end its production, especially in light of projected global mission sets for the U.S. military."

Both legislators also have gone to bat for Boeing’s St. Louis-built F/A-18 Super Hornet, whose future was placed in limbo under the latest Pentagon spending plan.

The C-17 is assembled at a plant in Long Beach, Calif. But the cargo door, cargo ramp, landing-gear pods, nose and engine pylons are built in St. Louis.

A November 2008 report by the Government Accountability Office recommended "careful planning to avoid shutting down the C-17 line prematurely." Both Boeing and the Air Force believe shutting down and restarting production "would not be feasible or cost effective," the report found.

The GAO cited the high costs of hiring and training a new work force, reinstalling equipment to proper working condition and re-establishing a supplier base.

Boeing has delivered the C-17 to other countries, including Australia, Canada and the United Kingdom. The United Arab Emirates has announced its intent to buy four of the planes, and Qatar has ordered two and exercised an option on two additional C-17s.

But Anderson said international sales alone are not enough to sustain the C-17 line. Boeing officials say maintaining C-17 sales to the U.S. Air Force is necessary to keep the price of the planes competitive in the international market.

Defense analyst Loren Thompson of the Lexington Institute in Arlington, Va., said the C-17 is the best strategic airlifter ever built and "a very cogent case" can be made that terminating production at 205 planes would be too early. At the moment, he said, its future will be dictated by Congress.

"Here’s the bottom line to C-17," Thompson said. "If Congress doesn’t add money, there won’t be any more."

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All but six states lost jobs in April, and double-digit unemployment persisted in every corner of the country as companies squeezed by the recession slashed payrolls.

For the fifth straight month, California led the nation in net job losses, with 63,700. Among the handful of winners were Arkansas, Montana and Florida — a state battered by the housing collapse and badly in need of good news.

Federal Reserve Chairman Ben Bernanke has said he expects the economy to begin growing again later this year, but the recovery is expected to be slow. The Fed projects unemployment will stay high well into 2011.

Layoffs in manufacturing, construction and retail are a common theme in states with high unemployment. States like South Carolina, Michigan and Rhode Island have had trouble luring new types of companies to cushion the loss of manufacturing jobs and training laid-off factory workers for other kinds of employment.
Despite the tens of thousands of lost jobs, California’s jobless rate actually fell, to 11 percent from 11 no fax payday advance.2 percent in March. It was still the fifth-highest.

The nationwide unemployment rate stands at 8.9 percent, the highest in a quarter-century.

There are some bright spots: Arkansas and Montana tied for the biggest gains in April, adding 1,500 jobs apiece. Florida eked out an increase of 1,300 jobs.

North Dakota again registered the lowest unemployment rate: 4 percent. It was followed by Nebraska’s 4.4 percent, Wyoming’s 4.5 percent and South Dakota’s 4.8 percent. Economist Ken Mayland said he thinks those states are benefiting from growth in agriculture-related businesses.

Nearly 6.7 million people nationwide are drawing state unemployment insurance, the highest on records dating to 1967. The crush has exhausted unemployment funds in California, New York and elsewhere, forcing them to turn to the federal government.

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ST. LOUIS — Sprinkled among the independent storefronts and Mexican eateries along Cherokee Street are empty buildings waiting for young entrepreneurs to live and work.

The street has experienced a revival of sorts in the past year, and went from vacant and decrepit buildings to loft apartments and art galleries.

Will Liebermann started renovating buildings on Cherokee about four years ago, separating them into studios and advertising them as "live-work spaces." He started before that by renovating a few buildings in Dogtown, Gravois Park and Benton Park West but said none of them has been as successful as those on Cherokee Street.

He said that despite — or perhaps because of — the recession, more people are moving to St. Louis, and, more specifically, to Cherokee Street.

Since he opened his business in 2005, Liebermann has filled about 20 live-work units that were previously unoccupied, bringing in about 40 new people to the street. He is working on filling 14 more.

"In a down economy I’ve opened probably two businesses for every one that’s closed, which we’re real proud of," Liebermann said. "I’ve taken buildings that were uninhabited or a fraction of inhabited and put five, six, seven different occupants in."

Some of these occupants are businesses and some of them are residents, but more often they are independent businesses where the owners also happen to live, either in the business space itself or on the floor above it.

Tiffany Minx, the 29-year-old owner of Apop Records, opened her store in 2007. Now, she is moving from a few blocks away to right above the store.

‘UNIQUE FLAVOR’

"If you own your own business you’re pretty protective of it, you want to be close to it," Minx said. "If you live here too, you’re putting your entire life here."

Minx said she likes the growing vibe of Cherokee Street, and that it has an untouched quality.

"This has a really unique flavor of businesses," she said. "There are a lot of self-starters; nothing is polished or formed by some marketing committee."

When Liebermann walks down Cherokee, he says hello to people passing by and picks up scattered trash. He spends his days working out of his office in the neighborhood’s Business Incubator, which houses a host of independent Cherokee Street businesses cheap health insurance. He also spends time checking up on the construction of his 14 ongoing neighborhood projects.

Some of the buildings have been vacant for months, like one at the intersection of California Avenue and Cherokee.

At 4,000 square feet, Liebermann bought the building for $110,000. He has not yet found a tenant; it rents for $1,500 a month. But he still uses it for one-night events such as gallery openings and private parties and isn’t too worried about filling it.

"I’d want it to be an art gallery, anything that would be classy. I’d love for a cool furniture store," he thought aloud. "I don’t have to charge a lot to make a good revenue stream because the cost of the building was fairly low. I’d rather charge a little less than have an empty unit and try to hold out for a lot of money."

Evan Sult and Paige Brubeck moved to St. Louis from Chicago in November and remember opening their live-work space the night of the presidential election.

Once paying $935 a month for a small one-bedroom apartment in Chicago’s Wicker Park, the couple now pay $800 a month for a 2,500-square-foot studio loft where they have their graphic design and screen-printing businesses, as well as their band.

On one side of the room is a drum kit and an electric guitar, and on the other side are art materials and a screen-printing machine. There’s a kitchenette, and couches.

"We’re full-time artists, and that’s something hard to do. We chose coming to St. Louis rather than stay in Chicago and not be able to do it, and we’re trying to convince friends all over the country," Sult said. "This is our fake Manhattan loft. You definitely don’t have to be rich in St. Louis to have a fascinating life."

The tenants praise Liebermann for not only renovating buildings but also for embracing creativity.

"We’re all interested to see who moves in next," Sult said. "I think the attitude Will has taken is part of why, in 2011, it’s going to seem old news that Cherokee has established artists and businesses, because Will has been careful about bringing people that add more than just a monthly rent."

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Delta Air Lines Inc., Air France and KLM signed a deal Wednesday to combine two separate joint venture agreements into one to create a trans-Atlantic powerhouse expected to generate $12 billion in annual revenue, provide better travel options for customers and more closely align the carriers’ operations without a formal merger.

Passengers get more nonstop flights between major cities in the U.S. and Europe, while competition and the weak global economy likely will mean fares won’t be affected too much.

The airlines aren’t merging, and no subsidiary will be created, but airline consultant Darryl Jenkins said the equal sharing of revenue and costs regardless of who is flying the plane means the carriers essentially will act as one airline on certain routes payday loan cash advance loan.

"This is a very big deal," Jenkins said.

No new routes were announced beyond what the two previous agreements provided.

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