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As 2009 approaches, plummeting oil prices have sent the price of gasoline to the lowest level in nearly five years, according to a daily survey of gas station credit card swipes.

Gas prices fell for the tenth consecutive day Monday, according to motorist group AAA. Regular unleaded fell to an average of $1.619 a gallon, the lowest since gas hit $1.617 a gallon in January 2004.

Prices are down nearly $2.50, or more than 60%, since hitting a record average high of $4.114 a gallon this July. Prices have plummeted along with the price of crude oil, the main ingredient in gas, as the current economic has crisis intensified and threatened demand for petroleum-based fuels.

Oil has shed more than $100 a barrel since July.

"When you have the price for the raw material drop over $100 a barrel, that’s why you see the price of gasoline drop," said AAA spokesman Troy Green.

In the United States, the world’s largest oil consumer, citizens drove 100 billion fewer miles during the 12-month period between November 2007 and October 2008 compared with the prior year, according to the U.S. Department of Transportation.

And crude demand in China fell 3 payday cash advances.2% in November compared to the prior year due to lower imports and a decline in refinery usage, according to estimates compiled by Reuters.

Gas may continue to sell at record lows heading into 2009 unless economic activity shows some sign of recovery, according to Green.

Usually gas prices rise in the spring as Americans take to the road.

"Will the economy be in such bad shape that we don’t see that typical runup?" posed Green.

State prices: Prices remained above $2 a gallon in only two states Monday: Alaska ($2.518) and Hawaii ($2.332).

Gas was cheapest in Missouri at $1.419 a gallon on average, and sold for less than $1.50 on average in ten states.

Diesel: Meanwhile the price of diesel fuel, which is used in most trucks and commercial vehicles, fell to $2.435 on average Monday.

The AAA figures, compiled by Oil Price Information Services, are state-wide averages based on credit card swipes at up to 100,000 service stations across the nation. 

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Japan’s economy may shrink at an annual 6.5 percent pace this quarter, Bank of America Corp. said after reports last week showed industrial production and exports posted the biggest declines on record.

Gross domestic product in the three months ending Dec. 31 will decline more than the 2.7 percent previously predicted, said Tomoko Fujii, head of Japan economics and strategy at Bank of America in Tokyo.

Companies from Toyota Motor Corp. to Sony Corp. idled plants and fired workers this quarter as recessions in the U.S. and Europe caused sales of cars and televisions to collapse. The global slump is spreading to developing markets including Asia, the destination for about half of Japanese exports.

“External demand has vanished all of a sudden,” said Fujii. “Almost every industrialized nation is in a recession. Even in China, growth is slowing sharply.”

A 6.5 percent annualized contraction would be the steepest since the first quarter of 1998, when the Asian financial crisis and a sales-tax increase led to a 7.5 percent decline. The world’s second-largest economy shrank in each of the past two quarters, entering the first recession since 2001 no teletrak payday loan.

Factory output plunged 8.1 percent in November from October, the most since comparable data were first kept 55 years ago. Exports slid an unprecedented 26.7 percent from a year earlier.

Consumers at home are unlikely to pick up the slack. Household confidence is at a record low and the government has indicated it doesn’t plan to add to two stimulus packages it has yet to implement.

“Japan needs further economic measures as demand from abroad is totally lacking and will probably decline further in the first quarter,” Fujii said.

Finance Minister Shoichi Nakagawa told the Financial Times that the government has no immediate plans to draft another stimulus, saying its priority is to carry out measures announced since October. The plans, which include spending about 10 trillion yen ($110 billion) on employment and aid for households, still await parliamentary approval.

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Pharmacy-benefits manager Express Scripts Inc. said today that it received a extortion letter from an unknown person or persons demanding money and threatening to expose millions of the company’s patients’ records.

The letter included information on 75 patients, including their names, birth dates, social security numbers and, in some instances, prescription information, the north St. Louis County-based company said. The letter arrived in early October, Express Scripts said.

The company said it has notified the affected clients and the FBI, which is investigating the letter fast payday loan no faxing. Express Scripts said it also is conducting its own investigation.

The company did not say how much money the extortionist wanted.
Express Scripts’ stock fell about 6 percent to $58.18 in afternoon trading.

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OTTAWA–Canadian inflation came off the boil last month and began what is expected to be a long slide that could see falling prices – rather than rising – become the next economic conundrum facing the country.

Statistics Canada reported Friday that annual inflation cooled by 0.1 point to 3.4 per cent in September, just off August's five-year high.

In Toronto, the rate was unchanged at 3.7 per cent.

Gasoline continued to power the headline rate, while core inflation, excluding volatile food and fuel items, remained tame at 1.7 per cent, below the Bank of Canada's two per cent target.

The central bank has predicted a year-long slowing of the rise in the cost of living toward one per cent rate in mid-2009. And Bank of Nova Scotia economist Derek Holt believes Canada could experience deflation – a rare phenomenon of declining general price levels – next year.

"With credit channels around the world impaired and with incomes and wealth facing a further hit, that's not an environment where prices are going to go up for many categories," Holt explained.

"The problem comes if people and companies expect prices to drop, they start to postpone consumption because those prices will be cheaper later … so that only makes the downside risk facing the economy a self-filling prophecy."

There is little doubt that price increases will slow further, commented Douglas Porter of BMO Capital Markets.

He estimates gasoline prices are on track to fall more than 15 per cent in October, largely taking the steam out of the consumer price index.

"Inflation is rapidly becoming the least of policymakers' concerns," Porter said.

"While this report doesn't make it obvious, Canadian inflation is poised to soon recede meaningfully, even with the recent steep sell-off in the loonie."

Krishen Rangasamy, an economist with CIBC World Markets, said Bank of Canada governor Mark Carney will feel little restraint from cutting interest rates further on Dec. 9. The central bank has already slashed the cost of short-term money by three-quarters of a point this month to stimulate the economy.

About one-third of September's inflation rate was attributable to a 10-cent-a-litre spike in gasoline prices blamed on hurricane Ike hitting Gulf Coast refineries http://full-free-credit-report.com. That left gasoline 26.5 per cent more expensive than in September 2007, Statistics Canada said.

Excluding gasoline, prices would have risen only 2.2 per cent last month on an annual basis, Statistics Canada said.

While fuel costs now are easing with the dramatic decline in global oil prices, some inflationary pressures remain, the Statistics Canada data indicated.

The food index was up 5.6 per cent from a year earlier in September, accelerating from a 4.5 per cent August increase as prices for baked goods and cereal products ballooned 15.5 per cent year-over-year.

"Just as Canadians finally get to enjoy cheaper gasoline, they get slapped with higher food prices," CIBC's Rangasamy commented.

"After initially bucking global trends, Canada's food CPI has soared over the last six months, with an annualized increase of nearly 10 per cent over the period. With the loonie currently flying low, food imports will likely cost more over the coming months, countering for price declines on other consumer products."

Shelter costs also continued to increase in September, up 4.5 per cent, mostly as a result of higher mortgage interest costs. But Canadians saw the impact of the cooling housing market as homeowner replacement costs declined 1.8 per cent on falling house prices.

And while students paid four per cent more for tuition this year, there was some relief from continued price declines for computers, video equipment and other electronic items.

Canadians also found more bargains in car dealerships as the cost of buying or leasing a vehicle was down 9.3 per cent from a year ago, the largest drop since February 1956.

Meanwhile, prices for clothing and footwear slipped 1.3 per cent.

On a month-to-month basis, the all-items consumer price index rose a seasonally adjusted 0.2 per cent from August.

The cost of living varied considerably last month from one part of Canada to the other, with annualized price increases as low as 2.4 per cent in New Brunswick and as high as 5.5 per cent in Prince Edward Island.

Prices in Alberta, previously a hotbed of inflation, registered their smallest increase since December 2005, up 2.8 per cent from September 2007.

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Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz) said delivery of its new 787 Dreamliner to China probably would be delayed, but the ongoing strike made it impossible to say when passengers would be able to ride in the ultra modern plane.

The company’s latest quarterly profit fell 38 percent as a seven-week strike by its jetliner assembly workers wiped out almost a month of production at its Seattle-area plants.

Boeing has orders for nearly 900 of the fuel-efficient Dreamliner, 60 of which are from Chinese airlines. The planes were to have been delivered to the Chinese airlines starting in the third quarter of next year.

“Because of the strike that is ongoing at Boeing there will probably be some delay to that,” John Bruns, a vice president of China operations, told Reuters in an interview.

“But, we just don’t know the impact yet,” he said check cash advance.

Industry analysts had expected another delay to the plane, which is already at least 16 months behind schedule.

Boeing and union officials were scheduled to resume talks with the help of a federal mediator on Thursday, but they have so far struggled to find common ground on the key issue of outsourcing.

China is a focus for Boeing and rival EADS’ (EAD.PA: Quote, Profile, Research, Stock Buzz) Airbus unit as its booming economy is expected to require another 3,400 long-haul planes over the next 20 years, and as a base of production for key parts such as rudders, fairing panels and other composite parts. 

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Wells Fargo’s Merger With Wachovia to Proceed as Whole Company Transaction With All of Wachovia’s Banking Operations

Merger on Schedule for Completion by End of 4th Quarter 2008

Wells Fargo & Company (NYSE:WFC) said today that it and Citigroup Inc. (NYSE:C) have terminated discussions concerning a possible sale of certain banking assets of Wachovia Corporation (NYSE:WB) and reaffirmed that it is proceeding with its merger with Wachovia Corporation as a whole company transaction with all of Wachovia’s banking and other operations, requiring no financial assistance from the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

Wells Fargo has submitted its application to the Federal Reserve Board seeking expedited approval of the merger and the share exchange agreement previously entered into between Wachovia and Wells Fargo. Under the share exchange agreement, Wachovia is issuing Wells Fargo preferred stock that votes as a single class with Wachovia’s common stock representing 39.9 percent of Wachovia’s voting power. The acquisition of the non-banking related operations of Wachovia and the share exchange agreement have received early termination from the Federal Trade Commission (FTC), under the Hart-Scott-Rodino Act.

As previously announced, under the definitive agreement between the two companies, Wells Fargo will acquire all outstanding shares of common stock of Wachovia in a stock-for-stock transaction. In the transaction, Wells Fargo will acquire all of Wachovia Corporation and all its businesses and obligations, including its preferred equity and indebtedness, and all its banking deposits.

Wells Fargo Chairman Dick Kovacevich said the merger is “simply an incredible fit that will result in an immensely strong, stable financial services company that will carry on Wachovia’s proud tradition of being one of the very best financial institutions in the world. We’re combining the industry’s number one ranking customer service culture of Wachovia with the industry’s number one sales and cross-selling culture of Wells Fargo. The best in service and the best in sales, an unbeatable combination. We also bring to this merger our 157 years of experience in financial services and the unparalleled convenience we can offer Wachovia customers through one of the most extensive financial services distributions systems in North America 100% approval faxless payday loans. We have the highest regard for the quality and commitment and caring of Wachovia team members. We believe their demonstrated commitment to outstanding customer service and their highest standards of community leadership are identical to our own values.”

Kovacevich reiterated that the two companies have a firm, binding merger agreement, are confident the merger will be completed, that it will keep Wachovia intact and create significant value for Wachovia and Wells Fargo shareholders. Wells Fargo will record Wachovia’s credit-impaired assets at fair value. “Credit teams at Wells Fargo have had an opportunity to work with their counterparts at Wachovia,” said Kovacevich. “Much of Wachovia’s portfolio involves businesses where Wells Fargo has a significant market presence, operating history and expertise. We have had experience with such businesses through a variety of credit cycles. Given our broad based operating expertise, and specific understanding of these individual businesses we believe we have adequately evaluated the risks inherent in the portfolios as of the time of this merger agreement.”

In addition, Kovacevich said Wells Fargo is pleased that Citigroup announced that it is no longer seeking that the Wells Fargo-Wachovia merger be enjoined. “We believe that that is the correct and right decision for our Country and our citizens and the health of our already stressed financial system, as well as our and Wachovia’s respective shareholders and stakeholders,” said Kovacevich.

“We are delighted to stride ahead with Wells Fargo in creating a coast-to-coast financial institution — one of the strongest financial firms in the world,” said Wachovia Corporation President and CEO Robert K. Steel.

For complete Charlotte Business Journal coverage of the developing Wachovia story, click here.

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Prime Minister Gordon Brown will say bold and far-reaching action is needed to tackle the global financial crisis when Britain unveils a multi-billion pound bank rescue package Wednesday.

The package, due to be announced at about 7 a.m. (0600 GMT), will involve what a government source has described as a large-scale injection of capital into major retail banks, some of which have lost half their value this week.

“Extraordinary times call for bold and far-reaching solutions,” Brown will say at a news conference with finance minister Alistair Darling scheduled for 9 a.m. (2:00 a.m. EDT), according to extracts released by his press office.

“This is not a time for conventional thinking or outdated dogma but for fresh and innovative intervention that gets to the heart of the problem.

“These decisions on stability and restructuring are the necessary building blocks to allow banks to return to their basic function of providing cash and investment for families and businesses (payday loans).”

Financial analysts expect the package to involve the government providing up to 50 billion pounds to the banks in exchange for equity stakes in the form of preference shares, which could see taxpayers benefit if the banks recover.

The package follows a meeting Tuesday involving Brown, Darling, Bank of England governor Mervyn King and the head of the Financial Services Authority. There was pressure from bank chief executives to act.

British media have suggested the package could also involve a stand-by facility that would effectively allow banks to tap as much money as they need, but the government source played this down. 

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REDMOND, Wash.–Software giant Microsoft Corp. said Monday its board approved a plan to buy back up to another $40 billion of its shares.

The program expires on Sept. 30, 2013. As of July 28, Redmond, Wash.-based Microsoft had about 9.13 billion shares outstanding, according to a regulatory filing.

The company said it has completed its previous $40 billion stock repurchase program.

Microsoft also raised its quarterly dividend to 13 cents from 11 cents. The dividend is payable Dec. 11 to shareholders of record on Nov. 20.

The company’s board has also authorized debt financings of up to $6 billion. As part of this authorization, Microsoft has established a $2 billion commercial paper program. The company plans to use the proceeds for general corporate purposes, including buybacks and funding for working capital.

On Monday, Moody’s Investors service assigned an "AAA" senior unsecured debt rating to Microsoft, with a stable outlook cash advance loan no fax. The ratings agency said this reflects the company’s "position as the world’s largest software company with a strong and defensible market position throughout its diverse core offerings."

Microsoft also said it received a "AAA" corporate credit rating from Standard & Poor’s Rating Services.

Shares rose $1.22, or 4.9 per cent, to $26.38 in premarket trading.

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Central banks in Japan and Australia added $15.7 billion to the financial system to hold down borrowing costs, slowing the pace of cash injections as a U.S. plan to buy banks' bad debts eased credit-market jitters.

The Bank of Japan added 1.5 trillion yen ($14 billion) to the financial system in its fifth day of fund injections. The Reserve Bank of Australia added A$2.025 billion ($1.7 billion) to the financial system, about a fifth lower than the daily average for the week ended Sept. 19.

The U.S. Federal Reserve led central banks in Europe and Asia in pouring cash into global financial markets over the past week as the collapse of Lehman Brothers Holdings Inc. sparked a crisis of confidence. Stocks rallied and money-market rates dropped after the U.S. government announced a $700 billion plan to avert a financial meltdown by buying troubled assets.

“Though funding pressures are still there, some of the tightness in cash markets has eased,'' said Sally Auld, interest rate strategist at JP Morgan Securities Australia Ltd. in Sydney. The RBA “put a little bit of cash in today though it's not as dramatic as some of the injections last week.''

Japan's overnight call loan rate was at 0.25 percent after the BOJ's operation at 9:20 a.m. in Tokyo, falling from as high as 0.45 percent, according to Tokyo Tanshi Co.

The BOJ pumped 11 trillion yen into the money markets last week, its biggest injection in at least six years as central banks around the world worked together to prevent a financial meltdown. The Reserve Bank of Australia added A$12.3 billion in the five days to Sept. 19, the most in a week since August 2007.

Non-Japanese Banks

“There may have been a need for today's operation because foreign banks' repo and operation rates are high,'' said Shinsuke Kanabu, a project and research director at Central Tanshi Co no fax payday loans. in Tokyo. “If you look only at the Japanese inter- bank rates, there's no need for the BOJ injections.''

Non-Japanese banks are facing the highest premiums to borrow yen overnight since UBS AG, the European bank hardest hit by the subprime crisis, reported a record loss on Feb. 14. The BOJ last week said it will use its $60 billion swap arrangement with the Federal Reserve to supply dollars to local and foreign financial institutions as required by market conditions.

Foreign lenders pay 0.61 percent to borrow yen overnight, while Japan's banks pay 0.23 percent, according to Tokyo Tanshi.

Australian Borrowing Costs

Australian banks' borrowing costs dropped from the highest in six months, according to a gauge that measures the availability of funds in the market.

The difference between the rate banks charge each other for three-month loans and the overnight indexed swap rate stood at 75.5 basis points at 11:34 a.m. in Sydney, down from 92.5 points on Sept. 19, Bloomberg data show. A basis point is 0.01 percentage point.

Europe's main central banks lent $71 billion on Sept. 19 as part of a coordinated effort with the Fed.

The European Central Bank poured $40 billion into the markets while the Bank of England allotted $20.8 billion out of $40 billion offered and the Swiss National Bank added $10 billion. The ECB's and the SNB's auctions were oversubscribed. The Fed on Sept. 18 almost quadrupled to $247 billion the amount of dollars central banks can auction around the world.

In repos, central banks typically buy debt securities for a set period, temporarily raising the amount of money available in the banking system. They don't signal a policy shift.

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FRANKFURT–Europe's central banks offered up more cash to jittery banks on Friday, putting a combined $90 billion into money markets in a lockstep move aimed at stemming a loss in confidence in the face of a withering global financial crisis.

The move is aimed at boosting shaky confidence and persuading fearful banks to lend to each other. Banks have been increasingly reluctant to lend to each other as distrust spread throughout the financial system.

The European Central Bank, which oversees the 15-nation euro zone, said it offered $40 billion in the three-day tender with 64 banks bidding $96.7 billion. That compared to the $100 billion that banks bid for on Thursday.

In London, the Bank of England said it provided $40 billion, as well.

The Swiss National Bank said it received bids worth $21.1 billion from banks seeking access to the US$10 billion it provided.

Earlier, the Bank of Japan pumped another 2 trillion yen ($18.7 billion) into money markets, its seventh injection this week.

The move came a day after the U.S payday loan. Federal Reserve plowed as much as $180 billion into money markets abroad and the New York Federal Reserve's action to ease a spike in overnight lending rates by injecting $55 billion into the banking system.

On Thursday, the Fed authorized new swap facilities with the Bank of Japan for as much as $60 billion; $40 billion for the Bank of England and $10 billion for the Bank of Canada. All told, Fed action increased lines of cash to central banks by $180 billion to $247 billion.

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