Oracle Deal Hits European Speed Bump

European Union regulators announced on Thursday that they are launching an antitrust probe into Oracle’s $7.4 billion takeover of Sun Microsystems. EU competition commissioner Neelie Kroes said that regulators needed to examine the possible consequences of a deal in which “the world’s biggest proprietary database company proposes to take over the world’s leading open-source database company.” At issue is Sun’s open source database software MySQL, which competes with Oracle offerings in certain markets.

The European Commission has 90 days before it must make a final decision to approve the deal or block it. U.S. authorities have already greenlighted the transaction. The EU’s move seems likely to delay, rather than derail, the acquisition. MySQL represents a relatively small piece of Sun’s overall business, accounting for less than 5% of its $11.4 billion in revenues for the fiscal year that ended June 30. Experts believe that Oracle could spin off or sell the business to satisfy regulators if necessary.

Source: Associated Press, BusinessWeek

U.S. Jobless Claims Up More Than Expected

New jobless claims for the week ended Aug. 28 fell less than expected. The Labor Department said the number of laid-off workers applying for benefits dipped to 570,000—but economist had been expecting claims to fall to 560,000. The government’s employment report, due out tomorrow, is expected to show that while layoffs have slowed, the jobless rate climbed to 9.5% in August, up from 9.4% in July.

Source: Associated Press

No Back-to-School Relief for Retailers

The all-important back-to-school shopping season is shaping up to be a disappointing one for U.S. retailers, especially for chains that specialize in clothing for children and teens. The industry as a whole saw sales dip 2.9% in August , marking the 12th consecutive month of declines. Chains such as Abercrombie & Fitch, American Apparel and Wet Seal all logged double-digit drops in same-store sales. One relative bright spot was Gap, where The Gap and Old Navy divisions registered sales declines that were smaller than for the same month last year.

Source: New York Times

No Recovery Visible in Services Yet

U.S. service industries continued to contract in July, albeit at a slower pace, according to data published by the Institute for Supply Management on Sept. 3. The ISM’s index of non-manufacturing business edged up to 48.4, its highest level in 11 months. Yet any reading below 50 indicates that activity is decelerating.

Source: Bloomberg

Obama’s Big Gamble in Healthcare Debate

President Obama’s announcement that he will take his case for revamping healthcare before a joint session of Congress next week reflects a decision to go “all in” politically, laying his prestige on the line for the defining domestic issue of his young presidency. The President is gambling that he can tilt the balance in his favor by spelling out in detail just what he wants from the House and Senate in the coming weeks. Until now, Obama has avoided laying out a blueprint for healthcare, confining himself to statements of broad goals and leaving the particulars to Congress. White House officials said Wednesday that this strategy had helped keep the legislative wheels turning and avoid stalemate.

Source: Los Angeles Times

Twitter snags former Google exec for COO

Microblogging service Twitter has tapped a former Google executive to be its chief operating officer, the latest move by the fledgling but fast-growing company to build out its management team as it seeks to start making money. Dick Costolo will join Twitter next week as COO, company spokeswoman Jenna Sampson said by email.

Source: Reuters

Fed Tries to Prepare Markets for End of Securities Purchases

The Federal Reserve is trying to prepare investors for an end to its housing-debt purchases, while keeping interest rates near zero, reflecting an economy pulling out of a recession with little momentum. Federal Open Market Committee members discussed extending the end date of the agency and mortgage-backed bond programs, minutes of the group’s Aug. 11-12 meeting showed yesterday. The move would be aimed at avoiding disruptions in housing credit.

Source: Bloomberg

China Set to Buy $50 Billion in IMF Notes

China is on track to become the first purchaser of notes issued by the International Monetary Fund, a move that would diversify its foreign asset holdings and could give the IMF’s quasi-currency more clout. The IMF on Wednesday said China has signed an agreement to purchase approximately $50 billion in notes from the fund. The notes are denominated in Special Drawing Rights, a quasi-currency issued by the fund and promoted by China as a potential replacement for the dollar as the world’s reserve currency.

Source: Wall Street Journal

Pfizer whistleblower’s ordeal reaps big rewards

Taking on corporate giants can feel like tilting at windmills, but John Kopchinski’s six-year legal battle against Pfizer just made him a rich man. The Gulf War veteran and former Pfizer sales representative will earn more than $51.5 million as a result of his whistleblower lawsuit against the world’s biggest drugmaker.

Source: Reuters

Pernod Ricard’s Net Rises 12.5%

French spirits company Pernod Ricard warned Thursday that the wines and spirits industry will stagnate during its current fiscal year due to the economic downturn, even after it beat expectations with a 12.5% rise in full-year net profit. The world’s second-biggest drinks company by volume saidthat for 2009-10 it anticipates a general economic environment that will remain difficult.

Source: Wall Street Journal

Oil Trades Above $68 on U.S. Stockpile Drop, Rising Fuel Demand

Oil traded above $68 a barrel in New York after inventories declined in the U.S., signaling a recovery in fuel consumption in the world’s largest economy. U.S. gasoline stockpiles fell to an 11-week low even as refinery output increased, according to an Energy Department report yesterday. This was more than three times analysts’ estimates.

Source: Bloomberg