Harold Maass of The Week The Best of Today's Business

UBS to cut 5,500 jobs

Swiss bank UBS said it is cutting 5,500 jobs and quitting the municipal bond business as it grapples with a $10.97 billion quarterly loss. The loss, on $19 billion in credit-related writedowns, was in line with a warning UBS issued last month. (Bloomberg) The bank said it agreed to sell $15 billion worth of risky U.S. mortgage assets, with a nominal value of $22 billion, to U.S.-based BlackRock Inc. (MarketWatch) UBS is the European bank hardest hit by the subprime meltdown, writing down $37 billion in assets since last summer. "The worst is likely over" for UBS, said analysts at the bank Wegelin, but its "current outlook is anything but rosy." (Reuters)

Qwest loses home phone lines to cellphones

Regional phone giant Qwest Communications reported a 35 percent drop it quarterly profits, to $157 million. (MarketWatch) Qwest lost 783,000 home land-line subscriptions last year as customers switched to service through cable providers and to mobile phones. "Since Qwest doesn't own wireless spectrum, it makes it hard for Qwest to sell those customers anything," said analyst Donna Jaegers at Janco Partners. (Bloomberg) Qwest has 800,000 wireless customers, and it said yesterday that it is switching to selling cellphone service through Verizon Wireless, from Sprint Nextel, delivering another blow to No. 3 U.S. carrier Sprint. (BusinessWeek.com)

Swiss Re misses target

Swiss Reinsurance, the world's largest reinsurer, said its quarterly profits fell 53 percent, to $595 million. The earnings missed analysts' expectations, and Swiss Re shares dropped 6 percent in Swiss trading. (MarketWatch) The drop in profits was due to $778 million in credit market writedowns and a 20 percent decline in income from premiums. Reinsurance rates have fallen for two years, after rising in the wake of Hurricane Katrina. Swiss Re also said it will book almost $200 million in newwritedowns. "Credit losses are unexpectedly high," said analyst Viktor Dammann at Bank Vontobel in Zurich. "But this stuff is on the books and you just can't get rid of it." (Bloomberg)

Free Wi-Fi versus paid, versus . . .

As business travelers and other consumers increasingly seek out free wireless Internet and businesses look for ways to recoup the costs of increasing bandwidth use, a compromise of sorts is emerging: offer both free and fee-based Wi-Fi. Starbucks is perhaps the most visible practitioner of dual pricing, but it isn't the only one. Omni hotels offer free Wi-Fi in the lobby but paid service in rooms. Other businesses, notably airports, are switching to free wireless supported by ads or paid downloads. "Our position is, give the user a choice," said David Blumenfeld at ad broker JiWire. (The New York Times, free registration)

BEST COLUMNS OF THE DAY

Getting more mileage from your gas dollar

Record gas prices might be pushing you to ride the bus or car pool, says Marshall Loeb in MarketWatch, but you "can take less drastic measures" to save on fuel costs, too. The key is in your driving habits. You use more gas when you drive with a cold engine, so it's better to "combine short trips into one so that the engine stays warm." You can also increase your car's fuel efficiency by driving smoothly -- avoid "hard acceleration and breaking whenever possible" -- not creating unnecessary "aerodynamic drag" by carrying things on top of your car, and driving slower: at 75 mph, a Toyota Camry gets 30 miles per gallon; at 55 mph, it gets 40.

Insurance rates hit the gas

Now that "you've weathered higher gas prices," says Eileen Ambrose in The Baltimore Sun, you can "get ready for higher auto insurance premiums." Since 2004, auto insurance rates have been flat or lower, but insurers are starting to pass on higher health care and car-repair costs. And it will get worse. You can keep your rates down by avoiding tickets, dropping unneeded coverage, raising your deductible, bundling car insurance withhomeowner's insurance or other policies, and although this is a "controversial issue," maintaining a good credit score. And if gas prices are making you drive less, "tell your insurer" -- they might cut you a break.

GOOD DAY FOR: Beginner's luck, as Marvel Entertainment raised its earnings targets after its first in-house movie, "Iron Man," brought in $201 million in box office sales last weekend. That was the second-highest-drawing premiere for a non-sequel. Marvel said it will release "Iron Man 2" in 2010. (AP in BusinessWeek.com)

BAD DAY FOR: Betting on black, after the Tropicana casino and resort chain declared bankruptcy, sparked by New Jersey's decision to pull the company's Atlantic City casino license last year. It is the largest corporate bankruptcy filing so far this year; Tropicana has $2.67 billion in rated debt. The filing also underscores the harder times hitting Las Vegas. (The Wall Street Journal)

NOTED: Oil futures hit a record of $120.93 on the New York Mercantile Exchange early today. The new high was attributed to attacks and strikes in Nigeria, threats from Kurdish militants in Iraq and leaders in Iran, and improved prospects for the U.S. economy. "The bulls are in control of the market," said analyst Victor Shum at Purvin & Gertz in Singapore. (AP in Yahoo! Finance)

This column was written by Peter Weber and edited by Harold Maass of TheWeekDaily.com.