The great layoff tsunami in the U.S. appears to be easing, as initial claims for unemployment benefits in the week ended July 25 stayed below the levels of late June. True, claims rose by 25,000, to 584,000, a bit more than the 575,000 economists had predicted, but more than 600,000 claims were filed in every week last month. And the less volatile four-week moving average fell to 559,000 from about 567,000.

The total number of Americans collecting unemployment declined in the week ending July 18, by 54,000 to 6.197 million. But economists caution that while the worst of the job losses may be over, they expect hiring to pick up very slowly. Nevertheless, the stock market apparently took the job news as one reason for optimism, and traders boosted the Dow by more than 160 points, or 1.8%, at around 3 p.m.

Source: Bloomberg

Exxon Mobil: Not-So-Rich Results

The world’s biggest oil company, which reported mind-boggling profits during the oil price spike last year, posted its weakest results since 2003, widely missing Wall Street expectations. Exxon profits sank by 66%, to $3.95 billion, from the same quarter last year. The main culprits in the profit plunge: weak demand because of the global downturn, and poor results from the refining operation.

Source: Wall Street Journal

Cablevision To Spin Off Madison Square Garden

Cablevision Systems, which has been contemplating a restructuring for years, will spin off its famous sports arena into a separately traded public company. Bundled with MSG will be the New York Knicks, the New York Rangers, and Radio City Music Hall. After the spinoff, Cablevision investors will own stock in both companies, allowing them to “more clearly evaluate” each one’s potential. Cablevision CEO James Dolan will also become president and CEO of the new MSG.

Source: Newsday

Southwest May Bid for Frontier

Southwest said it’s preparing a bid for Frontier, setting up an auction contest with rival Republic Air next month. Frontier went into bankruptcy in April, 2008, after Southwest moved into the Colorado market, and last month received a $108.8 million offer from Republic.

Source: CNNMoney.com

Obama: I’m Not Antibusiness

In a July 27 interview with BusinessWeek in the Oval Office, President Barack Obama reflected on his first six months in office and discussed his evolving relationship with business leaders. The President clearly had a lot he wanted to say to the business community, with which he has gotten off to a shaky start. He addressed the criticisms of some CEOs that his policies are antibusiness, defended his proposed tax increases on the wealthy, and drew management lessons from his executive experience thus far. The President was cautious at times but always precise. He looked ahead to growth in a deleveraged economy driven by a more productive health-care system, energy innovation, educational improvements, and a more effective government. He added that many Americans are as cynical about business as business leaders are about government and that his goal is to channel this wave of populism in a constructive direction.

Source: BusinessWeek

What Next for Microsoft and Yahoo?

The bumpy, marathon mating dance between Microsoft and Yahoo finally concluded on July 29, when the two companies announced a partnership in Internet search and advertising to take on the industry powerhouse Google. But there was plenty of skepticism about whether the new partners could make a serious dent in Google’s dominance. The tie-up may help Steve Ballmer end the worst slump in his career at the helm of Microsoft, but it’s also likely to face antitrust scrutiny.

Sources: New York Times, Wall Street Journal, BusinessWeek

Shell Warns of Job Cuts as Profits Sink 70%

Royal Dutch Shell posted a 70% decline in net profit in the second quarter, as oil prices and refining margins tumbled, but foreign exchange gains helped the oil major beat forecasts. New chief executive Peter Voser warned of “substantial” job cuts to come and announced a planned reduction in the company’s capital spending program, as it copes with weak demand, excess capacity and high costs.

Sources: Reuters, Financial Times

Sony’s Quarterly Losses Less Grim Than Expected

Japan’s Sony Corp. posted smaller-than-expected net and operating losses on July 29 for the April-June quarter, despite a strong yen and heavy restructuring costs, but it left its full-year loss forecasts unchanged.

Source: MarketWatch

Volkswagen Profits Fall but Beat Estimates

Volkswagen, Europe’s largest carmaker, reported a smaller-than-anticipated decline in profit and said growth in emerging markets will help the Audi manufacturer outperform the industry in the second half. Rival Daimler also posted a loss but predicted improved results in the second half, while French giant Peugeot surprised investors with unexpected positive cash flow.

Sources: Bloomberg, New York Times

Ford Set to Revive Taurus Marque

After a 20-year run, the Ford Taurus was headed for the scrap heap in 2007. But Ford’s new chief executive, Alan R. Mulally, reversed course, figuring the Taurus name still had value, even though its reputation had faltered as the car became best known as a staple of rental car fleets.

Source: New York Times

European Confidence Grows More Than Expected

European confidence in the economic outlook increased more than economists forecast in July, adding to signs the deepest recession in more than six decades may be bottoming out. An index of executive and consumer sentiment in the 16 nations that use the euro rose to 76, the highest since November, up from 73.2 in June.

Source: Bloomberg