Globe holds off closer

The John Henry era will soon begin at The Boston Globe — though not as early as originally hoped — as the broadsheet prepares to end two decades under the control of its out-of-town overlords.

A source close to the deal told the Herald yesterday that finalizing the purchase and executing the formal transfer of the newspaper from the Times to the Red Sox owner — which had been expected to happen sometime over the weekend — likely won't take place until next week at the earliest.

Both the Globe and a rep for Henry declined comment yesterday, and a Times spokeswoman did not return calls or emails.

Henry announced in August he was buying the New England Media Group — which includes the Globe, Boston.com, the Worcester Telegram & Gazette and related properties — for $70 million.

Since then, Henry has remained tight-lipped publicly about his long-term plans for the paper — including whether he will sell the Morrissey Boulevard building or cut staff. That silence has left Globe staffers on tenterhooks, said Alan Mutter, a former newspaper editor and an adjunct professor at the University of California at Berkeley.

"In the newsroom and elsewhere in the building, everyone's wondering what's going to happen next," said Mutter. "Their number-one primary concern is will they have a job ... There are all sorts of ways you can restructure the business and cut costs."

Had the deal occurred over the weekend, Henry could have been in the unusual position of printing the first edition of his new Globe reflecting the outcome of tomorrow's potential ALCS-clinching Red Sox game.

Meanwhile, analysts said it was long overdue for the Times to unload its local newspaper portfolio.

"They get (to get) rid of what they believe is a losing business," said analyst Ed Atorino of The Benchmark Company. "A lot of newspapers are struggling. In a way, there are so many problems at the Times, it probably became a distraction."

Said Mutter: "The New York Times clearly decided to sever everything that could be a distraction to the main brand. What they're getting is not so much money, but peace of mind — they don't have to worry about The Boston Globe anymore."

20.25 | 0 komentar | Read More

Accord coupe adds some pizzazz

OK, so it may not be the Beach Boy's "Little Deuce Coupe," but the completely redesigned 2013 Honda Accord is a fun-to-drive two-door, six-speed that hits the market with flare.

It was built fresh from the ground up, with a new smooth, tight suspension that offers a quieter ride without giving up its legacy as a sporty handling sedan. I found the powerful 278 horsepower V6 to be quick, responsive and, best of all, more fuel efficient. I averaged nearly 26 miles per gallon in mixed, but spirited driving, and pushed past the high end of the 28 mpg estimate on the highway.

What was even more fun, though, was rocking through the six-speed while really driving the car. Working the gearbox, I found the throw a tad long for me, but the shift points were tight and super torquey. The coupe drives smaller than it looks and although it seats five, clambering into the back is for the more spry among us. This machine even has a hill assist, reducing some clutch fatigue.

Honda, under fire recently for its conservative design approach, has broken the mold and added some pizazz back into its lineup. The Accord, famous for its longevity, sportiness and reliability, looks to recapture its share of the highly competitive mid-size market. Shaking off a few years of pedestrian-looking sedans, the roof line has been lowered, styling sharpened and a more aggressive-looking nose added by Honda engineers who are listening to consumers' demands.

The interior fits the spirit of this rebuild with comfortable leather-trimmed seats and steering wheel and the safety features standard on the EX-L trim level included back-up camera, lane departure warning, blind spot monitoring and forward collision warning. I really liked how the infotainment center streamed my Pandora. The dash is streamlined with two gauges and car information readouts.

One tripup was the frustrating navigation system that I found to have too many drop down menus. Honda sticks with a toggle wheel for input instead of using the touch screen pad. Honda is using a Harmon-designed voice activation system that makes running the center a bit easier.

The loaded EX-L coupe's MSRP checks in with a base of $32,350 and we tested at $33,140, placing it on the higher end among the fully equipped cars in the category. But don't fret, a more modestly trimmed car can be had in the mid- $20,000s and good deals can be found on the 2013s.

20.25 | 0 komentar | Read More

Stock market shakes off shutdown

Investors put the government shutdown and default threat behind them and got back to work yesterday, pushing the Standard and Poor's 500 index to a record close for the second straight day.

"We've already seen a shift in the discussion from how to deal with the issues at hand to let's talk about how to improve growth," said Doug Handler, chief U.S. economist for research firm IHS Global Insight.

Christine Armstrong, senior vice-president at Morgan Stanley, agreed. "We're back to business," she said.

The S&P 500, up 22 percent this year, added 11.35 points yesterday, or 0.7 percent, to a record 1,744.50. The Nasdaq composite was up 51.13 points, or 1.3 percent, at 3,914.28. The Dow Jones industrial average rose 28 points, or 0.2 percent, to 15,399.65, and is 277 points below its own record.

Among the leaders yesterday was Google, rising 14 percent to above $1,000 a share for the first time after reporting third-quarter earnings that surpassed analysts' expectations. General Electric also reported higher than expected earnings, driving its shares up 3.5 percent. And Morgan Stanley jumped 2.6 percent on better than expected earnings.

Investors were relieved Washington extended the government's borrowing ability until Feb. 7 and funded the budget through Jan. 15. But Handler said there are still hazards that need to be dealt with.

"We really do need some sort of positive statement from Washington," he said.

And Armstrong believes the impact of the 16-day shutdown on the nation's economy will show itself in the coming months.

"This is a very tricky, dangerous market right now," she said.

20.25 | 0 komentar | Read More

Harvard Square's iconic Upstairs to close

For more than three decades, it has been a fixture in Harvard Square, first as UpStairs at the Pudding and, since 2002, as UpStairs on the Square — in both its incarnations, a place that drew celebrities and locals alike for its eclectic menu and its Alice in Wonderland decor.

But on New Year's Eve, the iconic restaurant that Mary-Catherine Deibel and Deborah Hughes founded will close its doors for the last time after a grand finale fete with dancing and champagne to celebrate UpStairs' storied history.

"It's been a long and fruitful 31 years," Deibel said last night. "Now it's pedal to the metal so we have a great three months."

News that their landlord has decided to sell the building at 91 Winthrop St. came as a shock to those who have come to see it as a local landmark.

The restaurant opened in 1982 for Harvard's Hasting Pudding Woman of the Year, Ella Fitzgerald, and went on to host other celebrities over the years, including Bono, Tom Cruise, Julia Roberts and James Franco.

"The restaurant has always been beautiful and fun, with its zebra prints, hot pink walls and chandeliers," said Denise Jillson, executive director of the Harvard Square Business Association. "It could make something as simple as a roast chicken dinner memorable. It will be sorely missed."

UpStairs had a particular appeal for young professional women who could meet there after work for drinks, Jillson said. Her personal favorite was the Jackie O'.

"I have no idea what was in it," she said. "I can only tell you that it was very effective."

20.25 | 0 komentar | Read More

The Ticker

JP Morgan reaches $4B deal with feds

JPMorgan Chase & Co. has reached a tentative $4 billion deal with the U.S. Federal Housing Finance Agency to settle claims that the bank misled government-sponsored mortgage agencies about the quality of mortgages it sold to them during the housing boom, the Wall Street Journal reported online yesterday.

The deal is for less than the $6 billion the agency initially sought, the Journal said, citing people close to the discussions.

Ariad in trouble after failed study

Cambridge-based Ariad Pharmaceuticals Inc. is working on a new financial plan after increased risks of blood clots stopped a study aimed at expanding use of its only approved drug. The shares sank.

The study, called Epic, was testing Ariad's Iclusig against Novartis AG Gleevec in newly diagnosed chronic myeloid leukemia. Iclusig is still on the market and the company is working with regulators on changing the drug's labeling to reflect the safety findings, Ariad said yesterday in a statement.

"It's the end of Ariad as we know it," Mike King, an analyst with JMP Securities, said yesterday. The risks will relegate Iclusig to "break glass in case of emergency" use only, said King, who predicted the company may fire workers and halt plans to expand its headquarters.

Ariad will work in the next few weeks to put a new financial and operating plan in place, Chief Executive Officer Harvey Berger told analysts and investors on a conference call. It's premature to discuss the potential for a partnership or sale of the company, he said in response to a question.

"We are working as a team on a substantially revised financial plan that will extend out our cash runway substantially beyond where we are today," Berger said. "We're taking a fresh look at every component of our budget, every near- and long-term expenditure," he said, citing clinical trials, facilities and people.

Ariad plunged 41 percent to $2.67 at the close in New York yesterday, extending a record drop that started when the study enrollment was first halted earlier this month. The shares have lost 86 percent this year.

BMC gets two research awards

Boston Medical Center has been approved to receive two research awards from the Patient-Centered Outcomes Research Institute. One will fund a study of the delivery of cancer care to patients who face socio-legal barriers and the other a test of the effectiveness of integrative medical group visits for treating chronic pain.

THE SHUFFLE

• Thomas Hilditch, left, has been appointed a regional vice president of the 18,000-plus member Institute of Real Estate Management. His expertise includes site operations, staff development, budgeting, building systems, and community relations.
• Gary D. Hoffstein joins Needham-based Salus Capital Partners as the senior vice president, chief information officer, responsible for managing the direction of technology to support the firm's continued growth through strategic planning and evaluation.

20.25 | 0 komentar | Read More

HSBC unit ordered to pay $2.46B, plans to appeal

NEW YORK — A division of Europe's HSBC has been ordered to pay about $2.46 billion in a class action lawsuit claiming it violated federal securities laws.

Lawyers for the plaintiffs said that the judgment, which includes $1.48 billion in damages and nearly $1 billion in prejudgment interest, was the biggest ever following a securities fraud class action trial.

HSBC Holdings PLC, Europe's biggest bank by market value, said in a statement on Friday that it will appeal, noting that it was "the next step in an 11-year-old case and we believe we have a strong argument."

James Glickenhaus of Glickenhaus & Co., one of the three lead plaintiffs appointed by the court in 2002 to represent the class, said in a statement that the judgment "shows that the fraud committed by Household International and the individual defendant officers will not go unpunished, and we look forward to having the judgment affirmed on appeal."

The lawsuit named Household International Inc., which is now HSBC Finance Corp., and former executives William Aldinger, David Schoenholz and Gary Gilmer. It claimed that the company fraudulently misled investors about its predatory lending practices, the quality of its loans and its financial accounting from March 23, 2001 through Oct. 11, 2002.

HSBC acquired consumer lender Household International in 2003. The acquisition made HSBC the biggest subprime lender in the U.S. at the time, which resulted in billions of losses to HSBC leading up to the financial crisis of 2008.

A jury in Chicago found in favor of the plaintiffs in May 2009. In the final judgment entered in the U.S. District Court Northern District of Illinois Eastern Division on Thursday, Household International, Aldinger, and Schoenholz are held jointly and severally liable for the judgment. Gilmer is held severally liable for 10 percent of the judgment.

HSBC's U.S. shares shed 8 cents to $55.08 in premarket trading. They are up less than 2 percent for the year.

20.25 | 0 komentar | Read More

Federal workers return, but 16-day furlough leaves scars

About 15,000 federal workers in Massachusetts were back on the job yesterday and the state's national parks reopened after the 16-day partial government shutdown came to an end — at least for now.

"Hopefully, we won't be doing this again in January," said John Buckley, regional vice president of Boston-based Local 2264 of the American Federation of Government Employees.

The state's federal employees were notified electronically and by phone to return to their posts and many were relieved to be back on the job. Around the state, national parks began reopening as staff returned.

Sean Hennessey, spokesman for Boston National Historic Park, whose destinations include the Bunker Hill Monument and the USS Constitution, both in Charlestown, and the Great Hall at Faneuil Hall, said they turned away 55,000 people in the first 10 days of the shutdown alone, while 85 of 100 employees were furloughed.

"There were ancillary effects as well," Hennessey said of the lost business. "It was very hard on our gateway communities: car rentals, hotels, trolley tours, retirees who made long-range plans ... Those visits were all impacted because they'd show up and find we were closed."

Furloughed workers will be compensated for the time they were away from their offices, but two weeks without a job or a paycheck left real scars.

"It's devastating, especially for the people who are working check to check," Buckley said. "No one's prepared for this type of thing. By no means was it a vacation. It was uneasy all the time. It was really disturbing."

20.25 | 0 komentar | Read More

Shutdown fix makes companies defensive

The short-term fix that ended the government shutdown will have significant effects on the state and national economy as companies may put off hiring and spending for new projects while uncertainty over a permanent budget solution lingers, experts said.

One of the most direct impacts will be on the defense industry, including Waltham-based Raytheon.

Just awarded a $385 million Navy contract to develop an air and missile defense radar system, Raytheon could push back the additional hiring necessary to fill the contract because of uncertainty in the government and the potential for another shutdown in a few months, said defense analyst Loren Thompson, COO of the Lexington Institute in Virginia.

"It's quite possible that a hundred or more engineers who might have been hired on this program will be hired later or not hired at all," Thompson said. "They have to behave more cautiously."

Raytheon did not respond to requests for comment.

Virginia-based General Dynamics, which has an engineering and manufacturing facility in Taunton that employs about 100 people, also could be cautious with its investments and hiring over the next few months, Thompson said. A General Dynamics spokesman declined to comment on the company's plans.

Elliot Winer, chief economist for the Northeast Economic Analysis Group and former chief economist for the state, said businesses in general will likely be hesitant to make investments or new hires.

President Obama yesterday addressed the economic impacts of the shutdown.

"These last few weeks have inflicted completely unnecessary damage on our economy. We don't know yet the full scope of the damage, but every analyst out there believes it slowed our growth," Obama said.

Standard & Poor's Ratings Services said the shutdown cost the economy $24 billion, and research firm IHS Global Insight reduced its fourth-quarter forecast for U.S. economic growth to 1.6 percent from 2.2 percent. Spending at chain retail stores fell 0.7 percent last week, mortgage applications dropped 5 percent, and auto sales slumped about 2 percent.

Chris Geehern, executive vice-president of Associated Industries of Massachusetts, said the potential for another budget fight "will dampen the creation of new jobs and opportunities."

"Employers remain concerned that a lack of a solution to the underlying issues may well bring us back to the brink again," Geehern said.

20.25 | 0 komentar | Read More

Boston hospitals get $12M NIH grant

Two local hospitals are using a federal grant to form the Boston Biomedical Innovation Center, the latest effort by nonprofit hospitals to play a role in transforming medical research into commercially viable products.

The seven-year, $12 million grant — one of three nationwide from the National Institutes of Health — will ensure that scientific advances at Brigham and Women's Hospital and Massachusetts General Hospital will "rapidly lead to new drugs, medical devices and diagnostic tools that can help improve — and even save — the lives of patients everywhere," said Dr. Anne Klibanski, chief academic officer at Partners HealthCare.

"The purpose is to help bridge the chasm in realizing the benefits of many discoveries," said Dr. Joseph Loscalzo, chairman of the department of medicine at Brigham and Women's and a Harvard Medical School professor.

As government funding grows more difficult to secure, hospitals are turning to industry to establish joint projects, said Michael Pistone of the Center for Technology Commercialization at Cincinnati Children's Hospital, which spends $1 million annually to advance research to the point of commercial viability.

Boston Children's Hospital has joined with a California diagnostics equipment maker to form a company to develop tests for pediatric diseases. And, Mass. General is teaming with AstraZeneca to find the best matches between patients and treatments.

"It's obvious you need to have partnerships in order to make medical progress," said Edward Abrahams, president of the Personalized Medicine Coalition, an education and advocacy group. "We need to break down the barriers."

20.25 | 0 komentar | Read More

Downtown evolves as a neighborhood

No longer do the sidewalks roll up after 6 p.m. in the Financial District.

The Hub will see twice the number of new housing units during this cycle than it did last cycle. And it is well-positioned to absorb the housing spurt, as there is a shift toward more urban living.

Accompanying the new housing are more amenity retail options and a different vibe in office tenancy in Downtown Crossing and the Financial District — an area we now just call downtown.

Greg Vasil, CEO of the Greater Boston Real Estate Board, said the lines for the two districts were artificially drawn — one a retail area and the other an office area — but now it is all one.

"The Downtown Crossing area was always the place to shop, and as a natural progression over time, the area is going from a retail district to a mixed-use district," Vasil said. "Downtown Crossing is on its way to becoming another 'living district,' where you have the amenity retail, such as the Walgreens superstore, Roche Brothers grocery store, as well as more fitness centers, retail and restaurants."

David Begelfer, CEO of NAIOP-Massachusetts, a commercial real estate association, said Boston has evolved, both commercially and residentially.

"It is no longer the sense if you are looking for residential you look only to the Back Bay or the South End, you are looking at options that go across the city," Begelfer said. "Same thing goes for office, it is no longer just the Financial District; it is Back Bay, the Seaport, Allston, Brighton and Fenway that are showing very strong life for office development, not a usual situation."

Over the past 13 years, the topography of Greater Boston's commercial tenant landscape has shifted significantly.

To keep talent, companies are moving into the city. Many of these non-financial companies want to be in an urban location with some street vibe to it, said Peter Farnum, senior managing director and principal at Cassidy Turley.

"PayPal, with its move into the fifth and sixth floors of One International Place, and Technip, with its relocation from East Cambridge to One Financial Center, are just two of the recent technology and innovation firms to move into the downtown market," Farnum said.

A significant step forward in changing the face of downtown is Millennium Partners' $630 million complex of new offices, stores and 450 luxury residences on the former Filene's site at the corner of Washington and Summer streets.

Advertising giant Arnold Worldwide and its sister agency, Havas Media, will occupy about 125,000 square feet in the project.

Several other housing developments already are underway in the downtown, including the recently opened 256-unit condo building at Millennium Place and a 381-unit apartment tower by Kensington Investment on Washington Street.

With its AAA bond rating, Boston is on its way to becoming a world class city.

Jennifer Athas is a licensed real estate broker. Follow her on Twitter @Jenathas.

20.25 | 0 komentar | Read More

SF Bay Area trains run as strike talks drag on

OAKLAND, Calif. — The contentious talks between the San Francisco Bay Area Rapid Transit agency and its two largest unions have dragged on for six months — a period that has seen a chaotic dayslong strike, a cooling-off period and frazzled commuters wondering if they'll wake up to find the trains aren't running.

"We're going to do everything we can to avert a strike," Josie Mooney, a chief negotiator for Service Employees International Union Local 1021, said before entering talks Wednesday. "That doesn't mean we're not ready for a strike. That doesn't mean we're not able to pull off a work action. We don't want to."

Hundreds of thousands of commuters have endured seven strike deadlines, sometimes staying up past midnight waiting to hear if the trains will run in the morning.

On Wednesday, they waited until about 10:30 p.m. to receive word from a federal mediator that the transit system will continue to run Thursday as unions and management agree to keep talking.

The possibility of a strike appeared to dim earlier in the day when Local 1021 President Roxanne Sanchez said she was hopeful that her union and the Amalgamated Transit Union Local 1555 will come up with a deal by late Wednesday.

"We're asking that this process conclude tonight," Sanchez said. "We can do this. We should do this. It is within our grasp."

BART spokeswoman Alicia Trost said the agency has been flooded with calls and emails this week from commuters frustrated that they haven't been given earlier notices.

Neither side would say where negotiations stand.

But at least one person seems comfortable betting that a strike won't happen.

A spokeswoman for San Francisco Mayor Ed Lee announced Wednesday afternoon that he had left on a trip to Asia. After delaying his flight for two days to ready the city for a possible strike, Lee concluded that a walkout seemed unlikely and went ahead with the planned trip.

Federal mediator George Cohen said progress has been made but he has imposed a gag order on the parties.

The key issues have been salaries and worker contributions to their health and pension plans.

Talks began in April, three months before the June 30 contract expirations, but both sides were far apart. The unions initially asked for 23.2 percent in raises over three years. BART countered with a four-year contract with 1 percent raises contingent on the agency meeting economic goals.

The unions contended that members made $100 million in concessions when they agreed to a deal in 2009 as BART faced a $310 million deficit. And they said they wanted their members to get their share of a $125 million operating surplus produced through increased ridership.

But the transit agency countered that it needed to control costs to help pay for new rail cars and other improvements.

On Sunday, BART General Manager Grace Crunican presented a "last, best and final offer" that includes an annual 3 percent raise over four years and requires workers to contribute 4 percent toward their pension and 9.5 percent toward medical benefits.

The value of BART's proposal is $57 million, BART spokeswoman Alicia Trost said, adding that the agency is looking at ways to incorporate the unions' counterproposals into that cost.

SEIU Local 1021 executive director Pete Castelli said Monday the parties were between $6 million to $10 million apart.

Workers represented by the two unions, including more than 2,300 mechanics, custodians, station agents, train operators and clerical staff, now average about $71,000 in base salary and $11,000 in overtime annually, the transit agency said. BART workers currently pay $92 a month for health care and contribute nothing toward their pensions.

Meanwhile, Gov. Jerry Brown has stepped in to at least delay a strike by workers for regional bus system Alameda-Contra Costa Transit. Such a strike would leave commuters stranded without a mass transit alternative if a BART strike is underway at the same time.

Brown appointed a three-member panel to investigate a strike notice by union workers. The move effectively prevents a strike, which had been threatened for Thursday, for a week. A 60-day cooling-off period in the contract dispute could then be imposed.

20.25 | 0 komentar | Read More

White House: Furloughed workers can return to work

WASHINGTON — The federal government is back open for business.

The Obama administration changed the government's status to "open" early Thursday, more than two weeks after a partial shutdown took hold when funding from Congress ran out.

Minutes after President Barack Obama signed a hard-fought deal struck in Congress, the White House directed all agencies to reopen promptly and in an orderly fashion. Furloughed federal employees across the country are expected to return to work Thursday.

"In the days ahead, we will work closely with departments and agencies to make the transition back to full operating status as smooth as possible," said Sylvia Mathews Burwell, director of the Office of Management and Budget.

Unless they are told otherwise, all employees should return to work on their next regularly scheduled work day, the Office of Personnel Management said. For most workers, that means they'll be expected to clock in Thursday morning.

But the administration also said agencies are strongly encouraged to be flexible where they can, including by allowing telework, flexible scheduling and excused absences in cases of hardship. Many federal workers may be unable to return to work on such short notice.

The White House encouraged federal workers to check OPM's website for additional instructions about returning to work.

Hundreds of thousands of workers have been furloughed since the shutdown started Oct. 1. The measure Obama signed Thursday restores government funding through Jan. 15. It also extends the nation's borrowing authority through Feb. 7, averting a potential default.

___

Online:

Office of Personnel Management: http://www.opm.gov

20.25 | 0 komentar | Read More

Mobile co. touts Wi-Fi phone

Consumers are paying for the wrong part of owning a smartphone, according to a Cambridge company that has launched a mobile service that lets users call, text and surf the web at no cost via Wi-Fi.

Scratch Wireless customers pay for a smartphone and only a smartphone, co-founder Alan Berrey said.

"There's this mobile industry which has us all in large contracts" that charge for the service more than the phone, Berrey said. "The model is upside down."

There is no voice or data service — although texts can still be sent —included when not connected to Wi-Fi, but users can pay $2 for 24 hours of mobile data or voice, or buy a monthly pass through its partnership with Sprint.

The phone — which has been optimized to make calls and send text messages over Wi-Fi — is a Motorola Photon Q, a phone released a year ago to generally positive reviews.

The target audience, Berrey said, is young people who text far more often than they call, and are often in range of wireless Internet.

Between 60 and 65 percent of all mobile data, according to Berrey, is used at home.

What makes Scratch different than other low-cost services such as TracFone and Cricket, is that once the phone 
is bought, the service can be free.

"We expect a pretty large part of our customers to not pay a dime" after buying the phone, he said.

20.25 | 0 komentar | Read More

Budget battles bad for business

Even though there's a short-term deal to reopen the government and raise the debt ceiling, the never-ending cycle of budget fights are hurting consumer confidence and creating uncertainty about the economy, business leaders and an economist said.

"All of the surveys show that consumers are cautious," said Jon Hurst, president of the Retailers Association of Massachusetts. "It couldn't have come at a worse time," Hurst said of the 16-day showdown.

With just over a month before the holiday shopping season gets going, lower confidence could lead to lower spending at a key time, he said.

The bipartisan legislation put together by the Senate lets the Treasury borrow through Feb. 7, and funds the government through Jan. 15. The Senate and later the House both passed it last night. The White House said President Obama signed the bill early today, hours after the House gave final approval.

"We fought the good fight. We just didn't win," House Speaker John Boehner said.

The White House budget office has already instructed federal workers to plan to return to work this morning.

"We'll begin reopening our government immediately and we can begin to lift this cloud of uncertainty from our businesses and the American people," the president said.

The bill, however, only delays the same debate, said Jim Klocke, executive vice president of the Greater Boston Chamber of Commerce.

"The fact that the deal that has been struck is only a three-month fix is in many ways only going to prolong the uncertainty," Klocke said. "All we've done is deferred the arrival of the bullet for a few months."

Nigel Gault, co-chief economist for the Parthenon Group, said the nation's global credibility will take a hit.

"We've gone to the brink once again, damaged the international reputation of the U.S.," Gault said.

The bill contained almost nothing substantial for Republicans demanding changes to Obamacare. The only provision is a requirement for Health and Human Services Secretary Kathleen Sebelius to produce a report stating her agency can verify the incomes of individuals who apply for federal subsidies.

Republican Sen. Rand Paul of Kentucky, a potential 2016 presidential candidate, told Boston Herald Radio yesterday he was never in favor of shutting down the government as a way to fight Obamacare. "I've always thought really if you want to talk about Obamacare, talk about how bad it is, and how awful it's going to be ... that's all good. But attaching it to shutting down the government, I didn't think was a good idea," he said.

The Associated Press contributed to this report.

20.25 | 0 komentar | Read More

US unemployment aid applications drop to 358,000

WASHINGTON — Applications for US unemployment benefits dropped 15,000 to a seasonally adjusted 358,000 last week, though the figure was distorted for the second straight week by California's efforts to clear backlogged claims.

The partial government shutdown also likely boosted the total, as government contractors and other businesses furloughed employees. The Labor Department says the less volatile four-week average rose 11,750 to 336,500.

Applications have jumped in the past two weeks, distorted by computer upgrades in two states and the 16-day shutdown. Prior to those unusual factors, claims had reached pre-recession levels, a sign that companies are cutting very few workers.

"Once the special factors are weeded out, and businesses carry on as best they can, we should continue to see moderate job growth," said Jennifer Lee, an economist at BMO Capital Markets.

California and Michigan continued to sift through backlogged claims held up by computer changes. Furloughed private-sector workers drove up applications by 15,000 two weeks ago. About 70,000 furloughed federal employees also sought benefits in the week ending Oct. 5, although those workers aren't included in the overall totals.

About 3.9 million Americans received benefits in the week ended Sept. 28, the latest data available. That's about 83,000 fewer than the previous week. A year ago, 5 million people were receiving aid.

The government opened for business on Thursday. Federal employees who receive back pay will likely have to reimburse the government if they claimed unemployment benefits during the two-week shutdown, although the law varies by state.

Before the government shutdown and California's backlog, applications fell to a six-year low three weeks ago, thought that figure was pushed lower by California's delays.

Falling applications for unemployment benefits are typically followed by more hiring. But so far, there haven't been many signs of that happening.

The shutdown has delayed a raft of government data, including September's employment report. And it will likely affect hiring and weigh on the economic growth in the October-December quarter.

Several economists have cut their forecasts for fourth-quarter growth by half a percentage point to about 2 percent or lower.

20.25 | 0 komentar | Read More

Berkshire Hathaway buys UK beverage machine firm

OMAHA, Neb. — Warren Buffett's company is buying the beverage-dispensing machine business of Britain's IMI PLC for $1.1 billion.

Berkshire Hathaway Inc. agreed to buy make the purchase on behalf of its Marmon Group subsidiary.

Buffett said on CNBC Wednesday that the ongoing budget debate in Washington, D.C., didn't affect this deal.

Buffett has insight into the beverage business because Berkshire is the biggest shareholder in Coca-Cola and it owns Dairy Queen.

Marmon officials say the IMI unit will fit well with its other food service businesses.

IMI says it plans to return most of the cash from the deal to shareholders and use the rest to contribute to pension funds.

20.25 | 0 komentar | Read More

Saudi Arabia, UAE seek $10.8 billion in US weapons

DUBAI, United Arab Emirates — Saudi Arabia and the United Arab Emirates say they seeking $10.8 billion in advanced U.S.-made missiles and other weapons as part of bids by Western-allied Gulf states to stay ahead of claimed military strides by rival Iran.

Gulf nations regularly spend billions of dollars on U.S. military equipment and upgrades amid lingering regional tensions with Iran, which often conducts major military exercises and claims to have made advances in drone technology and other areas.

Notifications posted late Tuesday on a Pentagon website say Saudi Arabia is seeking to purchase $6.8 billion in missiles, bombs, launch systems and other ordnance. The UAE is seeking approval for a similar ordered estimated at $4 billion.

20.25 | 0 komentar | Read More

Advance Auto Parts buying General Parts for $2.04B

RICHMOND, Va. — Advance Auto Parts Inc. said Wednesday it is buying General Parts International Inc. for $2.04 billion in cash, which the companies say will create the biggest automotive replacement parts provider in North America.

As part of the transaction targeted to close by late 2013 or early 2014, Advance Auto will get 1,246 company operated stores and 1,418 independently owned Carquest locations. Its shares soared in premarket trading.

The Roanoke, Va., seller of auto parts and batteries currently operates more than 4,015 stores in the U.S., Puerto Rico and the Virgin Islands. General Parts is a privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the Carquest and Worldpac brands. The combined company will be based in Roanoke, Va., and continue to have a presence in Raleigh, N.C.

Advance Auto CEO Darren Jackson said the transaction provides a "compelling strategic opportunity" to expand the company's geographic presence. In January, the company acquired privately held Northeast car parts supplier B.W.P. Distributors Inc., accelerating its growth in the Northeast.

Advance Auto also said Wednesday it expects third-quarter earnings of $1.42 per share on revenue of $1.52 billion, compared with year-ago earnings of $1.21 per share on revenue of $1.46 billion. Revenue at stores open at least a year is expected to decrease 2 percent. That's an important measure for retailers because it excludes results from newly opened or closed stores.

Analysts polled by FactSet predict earnings of $1.31 per share on revenue of $1.55 billion.

The company on Wednesday also reaffirmed its full-year adjusted earnings forecast of between $5.30 and $5.45. Analysts expect $5.55 per share.

When vehicle sales tumbled a few years ago, auto parts retailers such as Advance Auto Parts got a sales boost, as more Americans kept their vehicles longer and invested more in keeping them running.

But Americans have been buying new cars and trucks at a healthy pace in recent months, fueled by low interest rates, better credit availability and aging cars that need replacement.

Advance Auto Parts has been focused on streamlining and simplifying its organization to reduce costs and minimize the impact to sales and service levels. Its shares climbed $10.01, or 12.7 percent, to $93 in premarket trading.

___

Michael Felberbaum can be reached at http://www.twitter.com/MLFelberbaum.

20.25 | 0 komentar | Read More

Bank of America Q3 profit up sharply

Third-quarter profit for Bank of America Corp., the second-largest U.S. bank, surged as it saw increases from investments and interest charged on loans.

THE RESULTS: Net income jumped to $2.5 billion in the July-September period, up from $340 million a year earlier. On a per-share basis, earnings were 20 cents beating the 19 cents expected by financial analysts.

Third-quarter revenue slipped to $22.2 billion from $22.5 billion, coming in close to the analysts' forecast of $22 billion.

HOW IT HAPPENED: Bank of America said it had strong growth in lending, along with improved quality of outstanding loans and high deposit balances. The amount set aside for potential losses on loans dropped sharply to $296 million from $1.8 billion a year earlier.

Charlotte, N.C.-based Bank of America has been slimming down and cutting jobs since CEO Brian Moynihan took over in early 2010. The strategy is meant to make the bank easier to manage and to reduce riskier businesses. The bank cut expenses in the third quarter by about $1 billion from a year earlier, to $16.4 billion. It cut 24,651 full-time jobs.

Also, the big jump in net income reflected that last year's third-quarter profit was weighed down by one-time charges, including a $1.6 billion charge for legal expenses and a $1.9 billion charge stemming from an accounting rule that governs how banks value their debt. That made the latest quarterly earnings much fatter by comparison.

WHAT'S NEXT? The bank says it expects the economy and business conditions to continue to improve, and that it's in a position to capitalize on that.

20.25 | 0 komentar | Read More

EU seeks carbon tax for all flights over Europe

BRUSSELS — The European Commission wants to impose carbon emission charges for all flights using Europe's airspace.

Wednesday's proposal by the 28-nation bloc's executive arm would force airlines to buy carbon emission permits for all flights within Europe but also for the parts of intercontinental flights that use the bloc's airspace.

That means, for example, that a U.S. airline flying from New York to Frankfurt would have to buy pollution rights under the EU emission trading system for the part of the route within Europe's airspace.

The proposal still requires approval from the European Parliament and the bloc's member states. The Commission hopes it will enter into force next year.

The legislation would apply until 2020 when a recently agreed international airline carbon emissions tax scheme comes into force.

20.25 | 0 komentar | Read More

Citigroup earnings edge lower, miss estimates

NEW YORK — Citigroup said its earnings fell slightly in the third quarter as lower expenses weren't enough to offset a drop in revenue from its investment banking and consumer businesses.

Net income for the July-to-August period fell to $3.26 billion from $3.27 billion in the same period a year ago after excluding an accounting gain and other one-time items.

The earnings amount to $1.02 per share compared with $1.06 per share last year. Wall Street analysts who follow the stock had predicted earnings of $1.05 for the quarter, according to data provider FactSet.

"While many of the factors which influence our revenue are not within our full control, we certainly can control our costs," Citigroup CEO Michael Corbat said in a prepared statement.

Revenue fell to $18.2 billion compared with $19.2 billion a year ago.

Citi's investment banking revenue fell 10 percent to $839 million in the period, driven by a decline in its debt underwriting business and lower advisory revenues.

The bank said that "significantly lower" mortgage refinancing business in the U.S. contributed to a 7 percent decline in Citi's consumer banking revenue. An increase in interest rates this summer has been causing a drop in the mortgage refinance business at U.S. banks.

Citigroup's stock fell 35 cents, or 0.8 percent, to $49.25 in pre-market trading.

20.25 | 0 komentar | Read More

NY fights site listing homes for tourists to rent

NEW YORK — Each night, people in apartments all over New York City are cleaning up, putting out fresh towels and clearing out — to rent their private space to strangers from around the world.

Thousands of city residents are using websites such as Airbnb.com to list apartments or rooms for as little as $35 a night, a phenomenon officials say is illegal in many cases, undercuts the hotel industry, avoids taxes and threatens apartment building safety.

New York's top prosecutor is demanding that Airbnb turn over data on city dwellers who have listed on the site as part of an investigation into whether residents are breaking a state law barring sublets for fewer than 30 days if occupants are not present.

But many residents in the nation's most expensive city say they're providing a service that's valuable to them and their guests. Subletting for nights at a time is often the only way they can afford to pay rents that average $3,000 a month and can top $6,000 in the most desirable areas.

"I use Airbnb to supplement my income, and it's allowed me to go back to school," says Mishelle Farer, a 32-year-old former U.S. Army sergeant who rents her second bedroom in Brooklyn's artsy Williamsburg neighborhood through Airbnb for $60 to $70 a night, depending on the season.

Farer says she covers about half her rent through such arrangements. And besides, "I've met so many wonderful people from France, Germany, Spain, South Africa, Brazil, the Philippines."

Travel guide author Pauline Frommer says Airbnb and smaller sites such as flipkey.com, couchsurfer.com and housetrip.com fill a need in a city where hotel prices average $275.

"New York hotel prices are truly outrageous," Frommer says. "The city is overwhelmed with visitors, and it's practically impossible to find an affordable hotel room, so you need some kind of outlet."

Airbnb started five years ago in San Francisco, after two roommates couldn't afford their rent and inflated air beds for paying guests. It now operates globally in 35,000 communities, currently offering 500,000 listings, and is the world's biggest short-term rental company. The site takes 6 to 12 percent of every rental.

In New York, the company says about 15,000 people are offering short-term rentals ranging from $35 for a private space in a Brooklyn studio to a $60 walkup in Times Square to $120 for a garden apartment in Brooklyn's Red Hook to $921 for an antiques-furnished loft in Tribeca.

New York City has been aggressively challenging Airbnb, contending many sublets on its site are illegal because residents aren't there. And the city says such rentals are cheating the city of lodging taxes.

Since the mayor's office began examining short-term rentals in 2006, it has fielded more than 3,000 complaints and issued almost 6,000 notices of violation, including fire, safety and occupancy infractions, which carry fines.

Airbnb says 87 percent of hosts in New York share the space they live in with guests. The company has called the subpoena of customer information by Attorney General Eric Schneiderman an "unfounded fishing expedition" and says hosts are responsible for following varying laws around the world.

NYC & Company, the city's official tourism agency, issued a statement saying, "This illegal practice takes away much needed hotel tax revenue from city coffers with no consumer protections against fire- and health-code violations." Neither city officials nor hotel organizations would estimate how much revenue hotels and the city might be losing.

Landlords and tenant organizations have long complained that short-term sublets are a violation of most leases and a security issue.

Having strangers coming in and out of a residential building "is a terrible problem," says Tom Cayler, chairman of the Illegal Hotel Committee for Manhattan's West Side Neighborhood Alliance. "If you come home at night and there are people in the lobby or elevator who you don't know, you should be scared."

Sam Shaber, a musician who rented space on the Lower East Side for $150 to $225 a night, says she welcomed guests from France, Argentina, Sweden and elsewhere. And she said she always got a good sense of them from online exchanges and profiles before handing over the keys.

"In this day and age of Craigslist, we have a radar for who's weird," Shaber said. "We never had one problem."

Airbnb renters say they can offer an experience hotels can't — the opportunity to live like a native in funky neighborhoods off the beaten tourist paths.

Sergio Verdasco, 33, a mechanical engineer in San Sebastian, Spain, was hosted by Farer in Williamsburg for three nights.

"It was an amazing experience — a soft landing in a city where I don't know the people and don't speak the language well," he said by phone. "She told me where to go, what she likes."

"It's not the same as taking up a guide and doing what a million people do."

___

Associated Press writer Jennifer Peltz contributed to this report.

20.25 | 0 komentar | Read More

J&J 3Q net rises slightly on higher medicine sales

NEW BRUNSWICK, N.J. — Health care giant Johnson & Johnson says third-quarter profit edged up as a big jump in prescription drug sales and lower research spending made up for slumping sales of medical devices.

Its results beat Wall Street estimates and it nudged up its earnings forecast for the year.

Shares of the maker of baby shampoo, joint replacements and drugs for immune disorders rose modestly in premarket trading.

J&J's beleaguered consumer health business, which is responsible for the lion's share of roughly four dozen product recalls over the past four years, continued a slow but steady recovery as more products return to stores. Sales of nonprescription drugs such as Tylenol and bath and skin care items increased 0.8 percent, to a total of $3.61 billion.

Prescription drug sales jumped 9.9 percent, to $7.04 billion, and device sales dropped 2 percent, to $6.93 billion.

"Our key products and successful new product launches delivered strong growth," CEO Alex Gorsky said in a statement. "Our investments further strengthen our ability to deliver sustainable growth."

J&J said its net income was $2.98 billion, or $1.04 per share, up from $2.97 billion, or $1.05 per share, a year earlier.

Excluding one-time charges, it earned $1.36 per share. That was 4 cents per share better than analysts expected.

The company, based in New Brunswick, N.J., says revenue totaled $17.58 billion, up 3 percent. Analysts expected $17.43 billion.

J&J raised its profit forecast to $5.44 to $5.49 per share. Analysts expect $5.46 per share.

Its shares rose $1.11, or 1.2 percent, to $90.91 in premarket trading an hour before the market opening.

20.25 | 0 komentar | Read More

UK bank poised to pull plug on Somali remittances

LONDON — A British bank could soon be cutting a financial lifeline for millions of Somalis.

Barclays is poised to sever its ties to Dahabshiil, one of the Somali expatriate community's biggest money transfer services, as part of a larger reorganization of its business. Barring a succesful last-minute court challenge on Tuesday, experts say the move will jeopardize some 100 million pounds' ($160 million) worth of payments made from the U.K. each year.

Barclays' move, part of a company-wide effort to insulate itself from the risks associated with money-laundering and corruption, could force Dahabshiil to stop executing transfers between individuals as soon as Wednesday. The bank declined to comment ahead of the court decision expected later Tuesday.

"Today is quite an important day," said Laura Hammond, an expert in development at London's School of Oriental and African Studies. "Sons sending money to their mothers, who are used to doing that through Dahabshiil, they won't be able to do that."

A host of other money transfer businesses allow U.K.-based Somalis to wire money home, but Dahabshiil is the biggest, boasting some 24,000 agents and branches worldwide. Somalia has not had a functional government in two decades, and its people rely heavily on remittances processed by Dahabshiil and companies like it.

Britain's more than 100,000 Somali-born residents can't easily take their cash to the next company down the street. Rival Somali remittance services are too small to absorb the cash flow or, like Dahabshiil, have also had their bank accounts pulled.

Somali President Hassan Sheikh Mohamud said Monday that his government was watching what was happening in London "with great concern."

"Our people are now recovering from a long and devastating civil war and this is not the time to punish them again by closing the legitimate lifeline on which millions of Somalis absolutely depend," he said.

Hammond warned that Barclays' move may force the Somali money transfer business underground.

"It will be the perfect opportunity for those who want to send money to Somalia to fund terrorism or enable money laundering," she said. "It creates a black hole for accountability."

20.25 | 0 komentar | Read More

India outsourcer TCS posts $748M quarterly profit

MUMBAI, India — Top Indian outsourcer Tata Consultancy Services says its quarterly profit surged 16.4 percent on strong demand across its main markets and several new clients.

The Mumbai-based company posted profit of $748 million for the quarter ended September.

CEO Natarajan Chandrasekaran said robust demand in the U.S., Europe and Asia fueled the strong quarter. TCS also added three new clients with business worth $100 million.

The weakened rupee boosted profit in rupee terms since TCS gets most of its revenue in foreign currency but pays most of its 250,000 employees in the Indian currency.

The rupee plunged to an all-time low late in the summer before recovering somewhat in the last month.

20.25 | 0 komentar | Read More