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

NEWS AT A GLANCE

Office rents soften, in a mixed blessing

Companies are using less office space across the U.S., according to real estate research firm Reis, and that's cutting into commercial rents in most markets. That's bad for landlords, but it's bringing welcome rent relief to businesses. Nationwide, office rents rose 0.7 percent in the second quarter, less than inflation and way down from the 3.2 percent growth a year ago. (Reuters) The sharp slowdown could spell trouble for real estate deals done last year on the assumption of continued strong rent growth. "Landlords are having to concede ground on rents and tenant improvements," says Reis chief economist Sam Chandan. "The balance is tipping in the favor of tenants in many markets." (The Wall Street Journal)

American Airlines downsizes, explores foreign alliance

American Airlines said it's cutting almost 7,000 jobs, or 8 percent of its workforce, as it downsizes flights and pulls airplanes from service amid high fuel costs. The airline expects to take up to $1.3 billion in charges relating to severance and aircraft retirement. (The New York Times, free registration) The job cuts, including up to 900 flight attendants, will bring American to fewer than 80,000 workers, its lowest staffing level since 1988. (The Dallas Morning News) American is also seeking antitrust immunity to form a joint venture with British Airways and Spain's Iberia, including profit and revenue sharing. The venture would form a powerful transatlantic link between Europe, the U.S., and Latin America. (Financial Times, free registration)

Asian and European markets dip as oil rises

New record-high oil prices and a decision by the European Central Bank to raise interest rates sent overseas markets to a five-month low. (Reuters) Japan's Nikkei 225 ended its 11th consecutive session in the red, in its worst losing streak since 1965. Most other Asian markets closed lower, too. (MarketWatch) Oil futures passed $145 a barrel for the first time and neared $146 in New York early today, after the U.S. reported lower stockpiles. "The rise of European interest rates has been priced into oil," said Purvin & Gertz analyst Victor Shum, but the "official announcement by the ECB will still add momentum to oil prices." (AP in Yahoo! Finance) The ECB raised its key lending rate by 25 basis points, to 4.25 percent. (AP in CNNMoney.com)

Mildly entrepreneurial, and loving it

As the first wave of America's 76 million baby boomers starts retiring, some are using their hard-won free time to turn hobbies into very small businesses. Call them microbusinesses. These laid-back entrepreneurs tend to use their business as a way to focus on something they like, fill excess time, and maybe even make some money. But unlike traditional entrepreneurs, the retired boomers aren't too focused on success. "I'm not out to make money or change the world," says pharmaceutical neuroscientist-turned-nature photographer Carl Boast, 60. But he's found unexpected pleasure in selling a photo to a buyer, he says, "especially if it's a perfect stranger." (The New York Times)

BEST COLUMNS OF THE DAY

Don't crack the nest egg

As far as the markets go, "these are fast becoming hard times," says Robert Powell in MarketWatch, "and hard times can lead to bad decisions." Common bad decisions include getting a reverse mortgage or 401(k) debit card, or cashing in a life insurance policy. Unless you absolutely have to, "think twice" before raiding your nest egg like that. All of those moves have significant costs that could trash your "most valuable assets." With your 401(k), you should be contributing, not withdrawing. Taking withdrawals from your 401(k) incurs extra tax penalties and has steep opportunity costs. Plus, if "as a last resort, you file for bankruptcy," creditors can't touch your 401(k) or the first $1 million in your IRA.

Wal-Mart's makeover

Wal-Mart has a new logo, says Reena Jana in BusinessWeek.com, and it's probably shooting for "more than just prettying up" outdated typography. But what else? The block letters are being replaced by "rounded, lowercase characters," the pointy star is making way for an organic-looking "sunburst or flower," and Wal-Mart is becoming Walmart. This gives the company a "kinder, gentler" look, which is in line with its effort to appear more environment- and labor-friendly. But a new look may not be enough. Sometimes a logo is just a logo. After all, Starbucks changed its logo in April, and the "brand brushup" didn't save it from closing hundreds of stores.

GOOD DAY FOR: Rush Limbaugh, after Clear Chanel agreed to pay the radio host about $400 million through 2016. That is second only to Howard Stern's reported $500 million, five-year deal with Sirius Satellite Radio. Limbaugh's current eight-year contract, worth $285 million, expires next year. The deal comes as traditional radio faces a rough challenge from satellite radio and iPods. (The New York Times)

BAD DAY FOR: A sweet tooth, after sugar futures hit a four-month high amid speculation that rising oil prices will push up demand for sugar-based ethanol. Brazil, the world's No. 2 ethanol producer, uses sugarcane to make the fuel. With consumption rising, it has put 62 percent of its new cane crop toward ethanol production, leaving only 38 percent for sugar. (MarketWatch)

NOTED: The Los Angeles Times is cutting 250 jobs, including 150 newsroom jobs, and reducing the number of pages published by 15 percent to deal with declining ad revenue. "The number one reason that people cancel the L.A. Times is, they tell us, they don't have enough time to read the paper that we give them every day," said Times editor Russ Stanton. Last week, six major U.S. newspapers announced a combined 900 layoffs. (AP in BusinessWeek.com)

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