BUSINESS BRIEFS
Subprime loan crisis economy's greatest threat
Associated Press
WASHINGTON — The cascading fallout from the subprime loan crisis, barely a cloud on the horizon a year ago, is now viewed by experts as the economy's gravest threat.
In a survey being released today, 34 percent of the members of the National Association for Business Economics ranked the financial market turmoil from those loan defaults as the No. 1 threat to the economy over the next two years.
That compares with 18 percent from an August survey, when the most serious threat was seen by 20 percent of the economists as terrorism and the conflicts in the Middle East.
A year ago, the credit crisis did not even register as a chief threat. The latest survey found that 18 percent of association members listed excessive debt held by households and businesses as the top problem.
$2M FOR OIL SPILL IN SAN FRANCISCO
SAN FRANCISCO — Agents for the owner of a cargo ship that dumped oil into San Francisco Bay have agreed to pay $2 million to the city of San Francisco.
City Attorney Dennis Herrera says the agreement, announced yesterday, was an "initial payment" to cover some cleanup costs after the November crash, not a final settlement.
Thousands of birds died, beaches closed and the crabbing season was delayed after the 900-foot Cosco Busan sideswiped the Bay Bridge. The crash cut a gash in the hull, and 54,000 gallons of oil were spilled.
The agreement was reached with Hudson Marine Management Services of Pennsauken, N.J., acting on behalf of the ship's Hong Kong-based owner, Regal Stone Ltd.
GOLD SOARS AS DOLLAR WEAKENS
Gold rose to a record above $980 an ounce as a weakening dollar increased the appeal of the precious metal as an alternative investment and rising raw material costs boosted demand for a hedge against inflation.
Bullion may top $1,000 an ounce for the first time on accelerating consumer prices, according to a Bloomberg survey. The dollar reached a record low against a basket of six major currencies yesterday, and crude oil traded close to $102 a barrel.
"We have oil over $100, a free-falling U.S. dollar, increasing physical demand out of China," Zeng Chao, chief metals analyst at Everbright Futures Co., said in a report yesterday. "With all these in play, gold doesn't seem to have much of a choice but to go up."
RESTAURANTS FACING HARD TIMES
The restaurant industry has fallen, and it can't get up. To add insult: The worst may be yet to come.
The financial squeeze is hitting hardest at dinner. Dinner traffic fell 2 percent last year, says research giant NPD Group, which reports that lunch is slowing, too.
More serious troubles may be ahead for the $558 billion industry. With the exception of McDonald's — which posted a mostly terrific 2007 — same-store sales at the nation's largest restaurant chains grew just 0.3 percent last year, says rest-aurant researcher Technomic.
Worse, 49 percent of restaurants surveyed by the National Restaurant Association reported declines in same-store sales in January.
TALENT AGENCY LAUNCHES FUND
Entrepreneurs seeking cash for new-media startups get a new door to knock today.
William Morris Agency is teaming up with Silicon Valley venture capital firms Accel Partners and Venrock as well as telecommunications provider AT&T Inc. to launch an investment fund for consumer technology and media startups. It's part of an effort by the talent agency to cash in as more entertainment moves online.
The fund, which does not yet have a name, will make investments of less than $1 million in young companies that help foster growth in areas including broadband, wireless, gaming, advertising, entertainment and emerging media platforms.
