Copyright 2000 Chicago Sun-Times, Inc.
Chicago
Sun-Times
February 10,
2000, THURSDAY, MIDWEST
SECTION:
FINANCIAL; BUSINESS; Pg. 26
LENGTH: 765 words
BODY:
Claims, competition hurt Allstate profits
Allstate Corp.'s fourth-quarter profits fell 18 percent, even excluding
large charges for a restructuring and acquisitions, as higher auto claims and
stiffening competition continued to hammer the troubled insurer. Wednesday's
earnings report met analysts' lowered expectations but sent the company's stock
to a new 52-week low. Allstate shares fell $ 2.12 1/2, or 10 percent, to $ 19.87
1/2 on the New York Stock Exchange. The Northbrook-based company said quarterly
earnings excluding the one-time charges were $ 524 million, or 66 cents a share,
down from $ 641 million, or 78 cents a share, for the fourth quarter of 1998.
Quarterly net income including those charges was $ 425 million, down 44 percent.
For the year, earnings were $ 2.19 billion or $ 2.73 a share before special
charges, a 15 percent drop. With everything included, net income for 1999 sank
17 percent to $ 2.72 billion.
EU antitrust regulators to probe Microsoft
The European Union's top antitrust official said Wednesday that EU
regulators had opened an examination into the launch of Microsoft Corp.'s new
Windows 2000 operating system. Mario Monti, the EU competition commissioner,
told journalists that several competitors had complained that Windows 2000 would
give Microsoft a dominant position in the software market. "Whoever gains
dominance in the software service market gains dominance in electronic commerce,
too," Monti said. Monti said the European Commission sent Microsoft a letter
last week, asking for more information. Microsoft has four weeks to respond to
the request. Microsoft officials said Wednesday the company would comply fully
with the EU's request, and that the investigation would not interfere with
making Windows 2000 commercially available.
United teams up for new Web
travel site
United Airlines agreed to join with On2.com Inc. to develop
an Internet travel site with television-quality video as the world's largest
carrier tries to increase online sales of tickets and other arrangements. United
also will acquire a stake in On2.com, though the companies didn't disclose terms
of the agreement. New York-based On2 is developing a network of Web channels
that blend TV-quality video with the Internet's interactive
capabilities.
Firms seek 5-year sales-tax suspension
America Online Inc., Time Warner Inc., MCI WorldCom Inc. and other
companies are seeking a five-year suspension of taxes on
sales of books, records and certain other
items -- over the Internet and in retail
stores -- while states move to simplify sales taxes.
"This proposal is intended to enable all consumers, whether or not they make
purchases on the Internet, to enjoy the benefits of a new,
restructured sales- and use-tax system," the
companies, members of a congressionally appointed panel, said. The proposal
comes as the Advisory Commission on Electronic Commerce is seeking agreement by
April on a recommendation to Congress on electronic commerce and
Internet sales-tax policy.
Plan would ease futures
markets rules
The U.S. government wants to scrap its system of
regulating futures markets by allowing more freedom for big investors and
exchanges, while leaving controls on smaller ones, according to people who
reviewed a draft plan. Tiered regulation is the main feature of a proposal the
Commodity Futures Trading Commission is discussing with futures brokers,
exchange officials and investors. The agency wants to set goals for maintaining
fair markets rather than dictating do's and don'ts for trading, as it does now.
Prompted by new Chairman William J. Rainer's desire to get rid of unneeded
rules, the CFTC is developing changes to address complaints by the Chicago Board
of Trade and other U.S. exchanges. They say excessive government rules limit
their ability to compete as they lose business to overseas markets, electronic
trading systems and unregulated derivatives. Lawmakers have asked Rainer to send
a deregulation plan by Monday to the House and Senate Agriculture Committees,
which oversee futures regulation. CFTC Commissioner Jim Newsome said he expects
the agency to make that deadline.
Wheat prices rise at CBOT
Wheat prices led other grains and soybeans higher Wednesday on the
Chicago Board of Trade on bullish U.S. export news and dryness in the southern
Plains states. Wheat for March delivery rose 6 1/4 cents to $ 2.65 1/2 a bushel;
March corn rose 1 1/4 cent to $ 2.22 1/2 a bushel; March oats fell 3/4 cent to $
1.08 1/2 a bushel; March soybeans rose 3 1/2 cents to $ 5.03 3/4 a bushel.
LOAD-DATE: February 10, 2000 
