IN BRIEF

Tribe blames economy after not closing deal

A San Diego-area Indian tribe said the declining economy was the reason it wouldn't finalize a new gaming compact with California Gov. Arnold Schwarzenegger, meaning the state will lose out on increased gaming tax revenue.

The Sycuan Indian tribe in eastern San Diego County had a new agreement that would have authorized up to 5,000 slot machines and second off-reservation casino in exchange for more gambling taxes.

The move is seen as a blow to the Schwarzenegger administration, which has been counting on increased gaming taxes through renegotiated gaming compacts with several Indian tribes to help balance California's multibillion-dollar budget defect.

Cox Communications cuts back work force

Cox Communications in Las Vegas laid off staff Thursday as part of a 2 percent companywide work force reduction, a Cox official said.

The Southern Nevada operation reduced its work force by "less than 2 percent" after offering employees opportunities to first voluntarily leave with severance packages over the last four weeks, said Juergen Barbusca, a Cox Communications spokesman. Layoffs followed.

"Based on the number of employees who chose to take the package, we evaluated and those who were laid off were notified today," he said Thursday. Cox locally employed about 1,200.

Barbusca said those who were laid off would have opportunities to apply for other open positions in the company. The majority of the workers leaving the communications company as part of the reduction in force left voluntarily, Barbusca said. He did not give a specific number of local layoffs or resignations.

CHARLOTTE, N.C.

Investors to vote on Merrill Lynch buyout

When shareholders vote today on Bank of America Corp.'s acquisition of Merrill Lynch & Co., they are expected to transform the bank into a business befitting its name and change the face of Wall Street.

The shotgun deal, valued at $50 billion when it was announced in September, will create the nation's largest financial services company. But it comes at the cost of independence for one of Wall Street's greatest institutions and is yet another sign that the era of big investment banks ruling the financial universe is over.

The deal, struck as the solvency of investment banks was in grave doubt, has kept Merrill from a complete meltdown like the one suffered by Lehman Bros. Holdings Inc., which was forced to file for bankruptcy. It also prevented the company from being sold at fire-sale prices, as Bear Stearns Cos. was last March.

ATLANTA

Frequent-flier program due for redo at Delta

Delta Air Lines said on Thursday it will adopt a popular feature of Northwest Airlines' frequent-flier program, as it aims to merge the two reward systems by the end of 2009.

Delta will allow its travelers to qualify for elite status by flying a certain number of segments, in addition to flying enough miles. The segment rule comes from Northwest, which flies many short routes around the Midwest that connect through its hubs. So, a single flight from, say, Minot, N.D., to New York with a stop in Minneapolis would be two segments.

Delta said the new rule will begin Jan. 1. Delta acquired Northwest in a deal that closed Oct. 29 and is working to integrate the two carriers over the next year or two.

COLUMBUS, Ohio

Crude oil prices sink to reach four-year low

Oil tumbled below $44 a barrel Thursday and average gasoline prices slipped under $1.80 a gallon, both four-year lows, as unemployment benefit claims hit a 26-year high and major companies announced more job cuts.

The decline in energy prices has provided some relief to consumers and businesses, but has occurred as the nation dips into recession.

Veteran energy analysts were stunned as they watched light sweet crude dip $3.29, or 7 percent, to settle at $43.67 on the New York Mercantile Exchange.

Just four months ago, crude rocketed close to $150 and the average gallon of gasoline went for more than $4 per gallon. Crude has fallen nearly $27 in just one month.

Prices at the gasoline pump continued to decline, falling 1.4 cents overnight to $1.789, according to auto club AAA, the Oil Price Information Service and Wright Express. That price is down 60.2 cents from just last month.

PORTLAND, Ore.

Safeway to take steps to shore up '09 stance

Safeway Inc. told investors Thursday that it will aggressively cut costs, lower prices and focus on improving its financial position in 2009.

"We are a very strong player in a very weak economy, and we think that creates a very strong opportunity to take (market share)," Steve Burd, the grocery chain's chairman and chief executive officer, said Thursday at the company's annual investor meeting.

The Pleasanton, Calif.-based company said it expects to earn between $2.34 and $2.44 per share in 2009. Analysts polled by Thomson Reuters, on average, expect the company to earn $2.39.

Safeway, which also operates chains such as Von's in Las Vegas, said it expects its same-store sales, excluding fuel, to grow between 2 percent and 3 percent.

"These results will be supported by an aggressive cost reduction effort, coupled with price reductions, to further the company's effort to lower everyday pricing," the company said in a statement.

Safeway shares fell 38 cents, or 1.74 percent, Thursday to close at $21.43 on the New York Stock Exchange.

NEW YORK

Treasury yields follow stock indexes lower

Treasury yields fell again on Thursday, sending rates to new record lows, as the Dow Jones industrial average fell more than 200 points.

The 10-year Treasury note rose 0.91 points to 110.44 and yielded 2.56 percent, down from 2.69 percent Wednesday.

The 30-year Treasury bond rose 1.94 to 127.59 and yielded 3.07 percent, down from 3.17 percent.