In Short

A round-up of the day's other business news in brief

Oil rises to $102 on threat of hurricane

Oil rose to about $102 (€72) a barrel yesterday, underpinned by the threat of Hurricane Ike to oil refineries in the US, the world's biggest energy consumer.

US crude for October delivery rose $1.27 to $102.14 a barrel by 11.58am, having settled $1.71 lower on Thursday, when prices dipped as low as $100.10, their lowest since early April.

London Brent gained $1.17 to $98.81 a barrel, after a fall to about a six-month low of $96.99 yesterday.

Merrion loss cut by lower finance cost

Irish drug development company Merrion Pharmaceuticals said its first-half loss had narrowed on reduced finance costs.

The Dublin-based firm reported a net loss for the six months to June 30th of €2.17 million, or 13 cents a share, from €4.87 million, or 70 cents. Sales rose to €353,516 from €13,490.

Chief executive John Lynch said over the short-term the company was focused on completing Phase II clinical trials for Orazol, an oral bisphosphonate. These are used to treat osteoporosis or to repair bone damage in cancer patients.

Alitalia unions talk on airline's rescue

Italy's government scrambled to salvage a rescue deal for Alitalia last night after would-be buyers suspended a takeover in the face of union opposition, and even the pope said he was praying for the ailing airline.

The CAI group of Italian businesses that had agreed in principle to buy the profitable parts of Alitalia suspended due diligence. Alitalia's unions were holding meetings last evening to try to break the deadlock.

Steepest fallback in Japan since 2001

Japan's economy shrank 3 per cent last quarter, the steepest contraction since 2001, as companies and households cut spending and exports fell.

Gross domestic product for the three months ended June 30th shrank more than the annualised 2.4 per cent initially estimated.

Digicel commits $1m to relief effort

Denis O'Brien's mobile phone group Digicel has committed $1 million (€700,000) towards hurricane relief efforts in the Caribbean state of Haiti.