[June 04, 2008]

AP Business NewsBrief at 11:01 p.m. EDT

(AP Online Via Acquire Media NewsEdge) Paramount Vantage, Paramount combining operationsLOS ANGELES (AP) _ Paramount Pictures said Wednesday it will combine its marketing, distribution and production functions with indie label Paramount Vantage. Rob Moore, vice chairman of Paramount Pictures, said in a statement provided Wednesday that the combination of the two Los Angeles-based units of Viacom Inc. will be more efficient.

Stocks wobble as financials weigh on sentimentNEW YORK (AP) _ Wall Street ended a wobbly session with a mixed performance Wednesday as concerns about the financial sector eroded enthusiasm over a decline in oil prices and a report that signaled modest growth in the service economy. The worries about financial companies flared after Moody's Investors Service warned it might downgrade the ratings on bond insurers Ambac Assurance Corp. and MBIA Insurance Corp.

US air travel options shrink amid carrier strifeCHICAGO (AP) _ First it was soaring ticket prices and vanishing bargain fares, then new baggage fees. Now air travelers are facing dwindling choices for when they can fly and where _ even to such popular tourist destinations as Las Vegas and Orlando. The squeeze, a byproduct of record oil prices that are pushing airlines toward financial disaster, accelerated Wednesday when United Airlines announced plans to take 70 more jets out of service and cut domestic capacity by 17 to 18 percent in 2008-09. Its discount unit Ted will be shut down and 1,100 additional jobs eliminated, with more to follow.

Productivity improves while wage pressures moderateWASHINGTON (AP) _ Worker productivity increased at a faster pace in the first three months of this year than previously estimated, wage pressures moderated and an important measure of business activity showed the service sector skirted recession in May. The Labor Department reported Wednesday that productivity rose at an annual rate of 2.6 percent from January through March. That was faster than the government's first estimate of 2.2 percent a month ago.

S. Korea to hit Intel with $25.4M antitrust fineSEOUL, South Korea (AP) _ South Korea's antitrust regulator said Thursday it will order Intel Corp. to pay 26 billion won ($25.4 million) for violating fair trade rules. The Korean Fair Trade Commission said in a statement Thursday that it was issuing the order because the semiconductor giant offered rebates to South Korean computer companies and undercut competitor Advanced Micro Devices Inc.

J.D. Power: Vehicle quality improves industrywideDETROIT (AP) _ The quality of new cars improved across the industry this year, with Porsche, Honda, Toyota, General Motors and Ford among the automakers leading the pack, the marketing and consulting company J.D. Power and Associates said Wednesday. Porsche was the top brand in J.D. Power's annual ranking of initial vehicle quality, which measures both mechanical and design problems in the first 90 days of ownership. Others in the top five were Nissan Motor Co.'s Infiniti, Mercedes-Benz, and Toyota Motor Corp.'s Lexus and Toyota brands.

Bernanke sees no repeat of `70s-style inflationWASHINGTON (AP) _ Federal Reserve Chairman Ben Bernanke said Wednesday he does not believe the United States will experience the out-of-control prices seen with 1970s oil shocks. His assessment came in a speech delivered Wednesday to graduating students at Harvard University, where he earned a bachelor's degree in economics in 1975.

Oil falls after government says gas demand is downNEW YORK (AP) _ Oil prices extended their drop from record highs Wednesday, falling to the $122 level after the Energy Department said gasoline demand fell sharply last week. Retail gas prices, meanwhile, rose to a new record above $3.98 a gallon and are likely to hit $4 in coming days, although oil prices have retreated nearly $13 from last month's record levels.

Airlines raise nonstop fares sharply for summerDALLAS (AP) _ If you're taking a nonstop flight to summer vacation, better pony up a lot more money or start unpacking. In many cases, major carriers have more than doubled or even tripled their cheapest U.S. fares from last summer's fares. That's on top of the new fees for checking luggage and other services.

J.M. Smucker buys Folgers for $2.95 billionCLEVELAND (AP) _ Jams and jellies maker J.M. Smucker is adding coffee to its menu of brands by buying Folgers from consumer products company Procter & Gamble in a $2.95 billion, all-stock deal, Smucker's biggest ever. The deal announced Wednesday will nearly double Smucker's size. Folgers will become the 10th No. 1-ranked brand in the Smucker stable that includes its namesake jams, Eagle Brand condensed milk, Hungry Jack pancake mix and two earlier acquisitions from P&G, Jif peanut butter and Crisco cooking oil.

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