In brief: Broader deficit reflects recovery

Washington – The U.S. trade deficit surged to a larger-than-expected $40.18 billion in December, the biggest imbalance in 12 months. The wider deficit reflected a rebounding economy that is pushing up demand for oil and other imports.

The Commerce Department said the December deficit was 10.4 percent higher than the November imbalance.

For December, exports of goods and services rose for an eighth consecutive month, climbing 3.3 percent to $142.70 billion. Imports were up 4.8 percent in December to $182.88 billion.

Associated Press

Newspapers see slower ad declines

New York – The New York Times Co. posted its highest quarterly profit in more than 2 1/2 years as the advertising drought eased at the end of 2009 and a steadily shrinking work force saved the newspaper publisher more money.

The publisher of the New York Times, the Boston Globe and 16 other daily newspapers disappointed investors, however, by offering a tepid outlook. Times Co. shares plunged 9 percent Wednesday.

Ad sales, the main source of the Times Co.’s income, had fallen between 27 percent and 30 percent during the first three quarters of 2009. In the fourth quarter, the decline was not as steep: 15 percent.

Associated Press

Wine buyers likely to have good year

Los Angeles – Wine lovers in California have something to toast.

The state’s grape growers and wineries saw a bigger-than-expected harvest in 2009, according to a report released Wednesday, amounting to the second-biggest crop in California history.

For consumers, the year’s bounty is expected to spell more availability and cheaper costs for all types of California wine.

Wineries in the state crushed 3.7 million tons of grapes last year, up about 20 percent compared to a relatively light 2008.

All varietals showed growth, with chardonnay leading the pack in volume at about 726,000 tons, up 28 percent from the 2008 harvest.

Los Angeles Times

New MySpace chief stepping down

Los Angeles – Owen Van Natta is stepping down as CEO of struggling social networking site MySpace, effective immediately, after less than a year on the job.

MySpace’s parent, News Corp., made the announcement late Wednesday. The former chief revenue officer at MySpace rival Facebook will be replaced by Mike Jones and Jason Hirschhorn, who were promoted to be co-presidents.

During Van Natta’s tenure, MySpace cut 720 jobs, reducing its work force by about 40 percent, and broke the lease on bigger office space in west Los Angeles that it no longer needed – moves that resulted in about $180 million in restructuring charges but set up the site for better profits.

The site also stabilized a drop in visitors in recent months, although News Corp. said last week its digital properties, including MySpace, experienced a fourth-consecutive quarter of falling ad and search revenue.

Associated Press