- European shares mostly weaker
- Oil hits new record above $121 a barrel
- Adidas profits climb despite weak quarter at Reebok
- Microsoft says it's moving on from Yahoo
- Egypt reels from further steep price rises in fuel 

Swiss-based UBS back in the bad books on Tuesday as sub prime problems
continue to ripple through its operations. The bank said it was axing 5,500
jobs and selling billions of dollars of assets to US firm Blackrock to break
free of its sub prime problems. But the market wasn't so convinced - sending
its shares more than 5 percent lower on worries that its earnings power would
still be sharply curtailed.
 

That soured trade in European shares which were mostly weaker despite
earlier gains in mining and oil shares. Energy stocks gained after the price
of oil hit a new record above 121 dollars a barrel - partly due to increased
tensions with Iran and further supply disruptions in Nigeria.

In corporate results, Adidas said profits climbed nearly a third in the
first quarter despite another weak performance by its Reebok brand in the
United States. The world number two sports goods maker said cost cutting had
helped lift profits and it was also seeing good demand ahead of the Beijing
Olympics and the Euro 2008 soccer championship.   
   
On to Microsoft and Yahoo - after negotiations broke down at the weekend
between the two global giants - Yahoo says it's still open to more talks if
Microsoft came back with a new takeover offer.

But Microsoft International President Jean-Philippe Courtois told Reuters
that's not going to happen.    

Jean-Philippe Courtois, President, Microsoft
International   
"Absolutely that's the end of the story we're moving on - because
our strategy is very clear. It's about innovation, an innovation surge in life
services. It's also about an online advertising platform which we've been
acquiring and developing and extending and it's about a lot of partnerships we
have also developed with many other companies in the world." 

Finally, Egyptians began to feel the sting of steep rises in fuel and
cigarette prices that took effect Monday night. The government hiked prices to
help pay for recent wage increases and offset higher global energy costs. But
the increases are expected to spark further discontent in Egypt which is
already reeling from rising food prices, bread shortages and disputes over low
wages.

Basmah Fahim, Reuters