Saudi Arabia moves to calm oil prices
Saudi Arabia is taking steps to cool oil prices by opening additional fields to expand production, according to the Financial Times. The Saudi cabinet agreed that high prices can damage the global economy and is making additional moves to help increase production and distribution such as hiring more oil tankers. On Tuesday there will be a meeting of Gulf oil ministers where Saudi Arabia will fully detail its plans. Saudi Arabia is waling a fine line as tensions between itself and Iran increase.
Dow gains only 6
The Dow gained 6 points on Monday, closing at 13,239. The NASDAQ gained 23, closing at 3,078. Asian markets are mixed on Tuesday, according to CNBC and European markets are mostly down.
The Datsun returns
Three decades after being shelved due to product liability lawsuits, Nissan is bringing the Datsun back as a small reliable car to sell in emerging markets, as reported by the Associated Press. The Datsun will go on sale in Indonesia, India and Russia in 2014. The Datsun debuted in Japan in 1932. It was discontinued in 1981 in order to realign all of the Nissan brands.
Amazon to bring more robotic technology to its warehouses
Amazon.com said it has bout Kiva Systems, Inc. for $775 million in cash to bring more robotic technology to its giant network of warehouses, according to Reuters. Kiva develops robots that zip around warehouses, grabbing and moving shelves and crates of products. It will help Amazon to quickly fulfill online orders. Companies including Gap, Staples and Crate and Barrel have used the technology. Fulfillment costs had been rising at Amazon and this technology will help to control the growth of fulfillment costs.
Regulation team created to monitor commodities industry
A team of about 15 attorneys has been created by the Commodities Futures Trading Commission, the CFTC, to enforce regulations in the $300 trillion derivatives market. The Financial Times reports that this is the first time a specialized unit has been created with the purpose of bringing manipulation and disruptive trading cases. The enforcement team will be involved in situations such as the MF Global case in which customer funds may not have been properly segregated.
Brazil to bring criminal chargesagainst oil executives for oil spill
In a move that will dampen the enthusiasm for oil companies to further produce oil in this oil rich nation, Brazil plans to bring criminal charges against Chevron an Transocean executives for an offshore oil spill that occurred in November. The executives will be charged with environmental cries, according to the Wall Street Journal. The amount of oil spilled was less than 1 percent of the amount spilled in the 2010 BP Gulf of Mexico leak. Brazil is holding several executives and will not allow them to leave the country. Experts say that many foreign oil companies are reassessing their plans in Brazil. It is believed that Brazil needs the expertise of these foreign companies to ultimately create the offshore platforms and that its current strategy of charging the executives will not be beneficial.
Disney to lose over $200 million on John Carter flop
Walt Disney is expected to lost $200 million on its science fiction epic “John Carter” because of its weak box office performance. According to the Wall Street Journal, Disney will report an operating loss of between $80 and $100 million for its second quarter which ends in March. The movie cost $250 million to make and an additional $100 million to market. The movie brought in only $53 million in its first ten days. It was about a Civil War veteran transported to a planet populated by alien creatures.
Apple sells 3 million new iPads in 3 days
Apple sold 3 million of its new iPads over the weekend, setting a company record, according to USA Today. In contrast, Apple sold 4 million of its iPhone 4s in the first weekend last fall. The new iPad starts at $499. It will be released to 24 new countries on Friday.