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IBM to pay $1.5B to shed its costly chip division

Written By Unknown on Senin, 20 Oktober 2014 | 20.25

NEW YORK — IBM will pay $1.5 billion to Globalfoundries in order to shed its costly chip division.

IBM Director of Research John E. Kelly III said in an interview Monday that handing over control of the semiconductor operations will allow it to grow faster, while IBM continues to invest in and expand its chip research.

IBM will make payments to the chipmaker over three years, but it took a $4.7 billion charge for the third quarter when it reported earnings Monday.

The company fell short of Wall Street profit expectations and revenue slid 4 percent, sending shares down 8 percent before the opening bell.

The tech sector is under heavy pressure in early trading, with IBM, Microsoft Corp., Intel Corp. and Cisco all moving lower.

Privately held Globalfoundries will get IBM's global commercial semiconductor technology business, including intellectual property and technologies related to IBM Microelectronics. It also gets IBM's semiconductor manufacturing operations and plants in East Fishkill, New York and Essex Junction, Vermont, as well as access to thousands of patents and IBM's commercial microelectronics business.

Globalfoundries said that it plans to employ substantially all IBM workers at the East Fishkill and Essex Junction plants, except for a team of semiconductor server group employees who will stay with IBM.

Under the agreement, Globalfoundries will become IBM's exclusive server processor semiconductor technology provider for 22 nanometer (nm), 14nm and 10nm semiconductors for the next 10 years. Globalfoundries was spun off from Advanced Micro Devices in 2009 to handle chip production.

IBM said handing over the chip division will allow it to concentrate on fundamental semiconductor research and the development of future cloud, mobile, big data analytics, and secure transaction-optimized systems.

The transaction is expected to close next year.

On Monday, IBM reported that its adjusted earnings from continuing operations were $3.68 per share, while revenue totaled $22.4 billion. The performance missed the expectations of analysts polled by FactSet, who predicted earnings of $4.32 per share on revenue of $23.39 billion.

Shares of International Business Machines Corp., based in Armonk, fell $14.35 to $167.70 in premarket trading.


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Sears plans to raise more cash via rights offering

HOFFMAN ESTATES, Ill. — Sears is looking to raise more cash, announcing that it is planning a rights offering that may raise up to $625 million.

The company, which runs Kmart and its namesake stores, also said Monday that it struck a leasing deal with European fashion retailer Primark.

Sears has been cutting costs, reducing inventory and selling assets to return to profitability. Its biggest albatross remains its stores, which critics say are outdated and shabby.

Chairman and CEO Edward Lampert combined Sears and Kmart in 2005 about two years after he helped bring Kmart out from under bankruptcy protection. The company has since faced mounting pressure from nimbler rivals like Wal-Mart Stores and Home Depot.

Sears is also facing broader structural issues. Like other stores catering to the low- to middle-income customers, Sears is grappling with a slowly recovering economy that's not benefiting all Americans equally. It's also trying to catch up to customers who are steering clear of stores and shopping online.

Sears Holdings Corp. said the rights offering will allow its stockholders to buy up to $625 million senior unsecured notes due 2019 and warrants to buy shares of its common stock. It anticipates up to $625 million in proceeds if the offering is fully subscribed and closes as planned.

The proceeds will be used for general corporate purposes.

Sears' lease agreements with Primark are for seven stand-alone stores in malls. Sears will still have a significant presence at six of the locations. Primark will lease about 400,000 net square feet of retail space in the Northeastern U.S. and is expected to receive the space over the next 12 to 18 months.

Earlier this month Sears said it would sell most of its stake in its Canadian unit to raise as much as $380 million. The Hoffman Estates, Illinois, company also has a $500 million dividend tied to the spinoff of Lands' End, $165 million in proceeds from some real estate transactions and a $400 million short-term loan, which is helping to bolster its fiscal 2014 liquidity.

Shares of Sears finished at $28.41 on Friday. Its shares have fallen 41 percent since the beginning of the year.


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Survey: Pay raises rarer despite strong US hiring

WASHINGTON — U.S. businesses were much less likely to boost pay in the third quarter than in previous months, even as hiring remained healthy, a sign that wage gains may remain weak in the coming months.

A quarterly survey by the National Association for Business Economics found that only 24 percent of companies increased wages and salaries in the July-September quarter. That's down from 43 percent in the April-June quarter and the first drop after three straight increases.

Yet the firms still added jobs at a healthy pace, which usually pushes wages higher as employers compete for workers. A measure of hiring in the survey dipped in the third quarter but remained near a three-year high. The figures suggest that the number of people out of work remains high enough that companies aren't under any pressure to raise pay.

And just one-third of respondents said they expect their companies will boost wages in the October-December quarter, about the same proportion as three months ago.

Despite healthy job gains this year, there were still 9.3 million people unemployed in September, according to government data. That's up from 7.6 million before the Great Recession. More than 7 million Americans are working part-time but are looking for full-time work, which gives employers an even larger pool of potential employees to choose from.

The NABE surveyed 76 of its member economists in late September. The economists work for companies or private trade associations.

Weaker sales and profits may have also made companies reluctant to boost pay. Just 49 percent of respondents said their company's sales rose in the third quarter, down from 57 percent in the second quarter and the smallest proportion in a year.

Profits also were squeezed, with 14 percent of firms reporting smaller profit margins. That was the largest proportion to do so in a year.

The survey's other findings included:

— Respondents were only modestly concerned about slower growth in Europe. Only 7 percent of firms said a slowdown there would have a significant negative effect, while 44 percent said it would have a minor negative effect. Forty-six percent said it would have no impact and just 3 percent said it would have a minor positive effect. Still, the survey was conducted before weak economic data from the region caused sharp drops in U.S. stock markets in the past two weeks.

— More than three-quarters of economists surveyed expect the Federal Reserve will begin raising its benchmark short-term interest rate in the second quarter of 2015. Still, 84 percent said a small increase in rates in the short-term wouldn't hurt their businesses.

— Two-thirds of the firms said they are having no difficulty filling their open jobs, a good sign for hiring. Government data shows that job openings are at the highest level in nearly 14 years. Some economists worry that many of the unemployed don't have the skills needed for the jobs that are available. But the NABE survey suggests that companies are mostly able to fill their available jobs. That's also probably a reason that wages increases are less common. If companies were having more difficulty hiring workers, they might offer higher salaries.


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European markets fail to pick up Asia's baton

Global stock markets remained volatile Monday as European indexes failed to pick up Asia's baton and posted more big falls. Wall Street was also poised for further selling at the open following an end-of-week rally.

KEEPING SCORE: In Europe, the FTSE 100 index of leading British shares was down 1 percent at 6,246 while Germany's DAX fell 1.4 percent to 8,724. The CAC-40 in France was 1.3 percent lower at 3,983. For the U.S., Dow futures were pointing to a 0.6 percent retreat at the bell while the broader S&P 500 futures indicated a 0.4 percent reverse.

JITTERS REMAIN: With the economic newsflow light Monday, investor nerves remain frayed. Last week, markets were extremely volatile as investors fretted over a combination of factors such as the economic stagnation in Europe, higher interest rates in the U.S. and waning growth in China. Figures over the rest of the week, including Chinese growth data, should help shine some light on those concerns.

THE QUOTE: "The big question this week is going to be whether the correction has played out," said Craig Erlam, market analyst at Alpari.

ASIA'S DAY: The downbeat mood in Europe was not evident in Asia earlier as the region's main indexes recorded solid gains in the wake of last Friday's rebound in Europe and the U.S. Japan's Nikkei 225 soared 4 percent to 15,083.91 following a report the Government Pension Fund will increase its domestic equity holdings to 25 percent from 12 percent. South Korea's Kospi was up 1.6 percent at 1,930.06 and Hong Kong's Hang Seng added 0.2 percent to 23,070.26.

CHINA ECONOMY: Much market attention over the coming 24 hours or so will likely center on China, the world's No. 2 economy. Third-quarter growth figures Tuesday may be the weakest in five years. Some analysts predict the economy expanded 7.2 percent from a year earlier, slowing from 7.5 percent in the second quarter. One analyst said the figures could be a "win-win" for markets. "If the number impresses, markets will feel things are not as bad as initially thought," said IG strategist Stan Shamu.

ENERGY: One symptom of the concerns over the global economy has been the sharp fall in oil prices over recent weeks. On Monday, they steadied, with the benchmark New York rate up 13 cents at $82.88 a barrel. Brent crude was down 25 cents at $85.92 a barrel.

CURRENCIES: Foreign exchange markets were relatively subdued with the euro up 0.1 percent at $1.2772 and the dollar 0.1 percent lower at 106.85 yen.


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Electrolux buoyed by US growth

STOCKHOLM — Growth in the U.S. and efficiency gains in Europe helped Swedish home-appliance maker Electrolux post a 42 percent jump in third-quarter profits.

The company said Monday that it made a net profit in the July to September period of 933 million kronor ($130 million) as revenue swelled 6 percent to 28.8 billion kronor.

Electrolux CEO Keith McLoughlin told The Associated Press said he was "quite pleased with the result in what could be characterized as challenging macro conditions."

Last month, Electrolux — ranked as the world's second-largest appliance maker after U.S rival Whirlpool — announced a $3.3 billion acquisition of the appliances business of General Electric. That deal is expected to close next year.

Headquartered in Louisville, Kentucky, GE Appliances' products include refrigerators, freezers, cooking products, washers and dryers and air conditioners. The division, which has 12,000 workers at nine factories, earned $381 million on $8.3 billion in sales last year.

McLoughlin said the acquisition would result in "substantial synergies," but declined to comment on possible layoffs.

"Most of the synergies are going to be primarily in the sourcing and purchasing side," he said. "It's mostly about what we buy, so that's where the vast majority of our synergies are going to come from."

Electrolux has more than 60,000 employees, including 10,000 in North America where its regional headquarters are in Charlotte, North Carolina.

Other than its own brand, Electrolux sells under the Zanussi, AEG, Frigidaire and Eureka trademarks.


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Dunkin̢۪ to go mobile

Written By Unknown on Minggu, 19 Oktober 2014 | 20.25

Dunkin' Donuts customers will be able to skip the lines when the Canton coffee-and-doughnut chain starts piloting mobile ordering by year's end, in advance of a planned U.S. rollout next year.

"We are planning to test mobile ordering in the fourth quarter, and we anticipate adding the ordering feature to our existing mobile app in 2015," Scott Hudler, vice president of global consumer engagement, said in a statement. "For the consumer, there is a huge benefit to skip the line, and improve order accuracy and speed."

Dunkin' would not provide details on test locations for mobile ordering.

Its rival, Seattle's Starbucks, this week announced that it would debut its own mobile ordering application in Portland, Ore., this year, with a U.S. rollout also planned for 2015.

Dunkin' customers likely will have to place their mobile orders once they get to a Dunkin' location or close to one, rather than an hour before pickup, for example — at least for the initial rollout — to ensure items such as coffees and breakfast sandwiches remain hot.

"Our products are amazing, but they don't age particularly well if they're sitting in a bag," Hudler said at a Dunkin' investor and analyst conference in Dallas last month. "We want to crawl before we run in this area, so it'll be more of the guests will let us know that they're on the premises, and then we'll trigger the order, because we think our speed-of-service is so fast that that's probably the best way to deliver a great product."

The Dunkin' mobile app for payments and gifting was launched in August 2012, and has had more than 8.5 million downloads.


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Ebola monitoring inconsistent as virus spread

DALLAS — The top administrator in Dallas County rushed to Texas Health Presbyterian Hospital this week responding to urgent news: One of its nurses had caught Ebola from a patient. He quickly asked for the hospital's watch list to find out who else might be at risk.

Judge Clay Jenkins, who is overseeing the county's emergency response, was told there was no such list. Simply put, nurse Nina Pham and her co-workers, who were handing fluids, inserting IVs and cleaning Thomas Eric Duncan in his dying days, were supposed to take their own temperatures and let someone know if they felt sick.

That wasn't nearly enough for Jenkins, and that evening, he began to make changes. Hospital officials told potentially exposed hospital workers to stop seeing patients other than Pham.

But the next day, the Centers for Disease Control and Prevention allowed another nurse who cared for Duncan, Amber Vinson, to get on a plane in Ohio and fly to Dallas with a mild fever. She was later diagnosed with Ebola, and CDC Director Dr. Tom Frieden has conceded that she "should not have traveled on a commercial airline."

The inconsistent response by health officials in monitoring and limiting the movement of health workers has been one of the critical blunders in the Ebola outbreak. Friends and family who had contact with Duncan before he was hospitalized were confined to homes under armed guard, but nurses who handled his contagious bodily fluids were allowed to treat other patients, take mass transit and get on airplanes.

"I don't think the directions provided to people at first were as clear as they needed to be, and there have been changes in the instructions given to people over time," said Rep. Michael Burgess, R-Texas, a doctor who did his residency in Dallas.

Local health authorities have said repeatedly throughout the response that their guidance and direction can change.

"Please keep in mind the contact list is fluid, meaning people may fall off the list or new people may be added to the list depending on new information that could arise at any time on any given day," said Dallas County health department spokeswoman Erikka Neroes on Friday when asked how many people are even being monitored.

On Thursday, Jenkins announced stricter restrictions that require hospital staffers who had been potentially exposed to stay away from the public for 21 days and check their temperature twice a day, once in person with a public health worker. It was the first written order anyone being monitored has been asked to sign.

"They can walk their dog, but they can't go to church; they can't go to schools; they can't go to shopping centers," said Mayor Mike Rawlings.

Public health epidemiologists were notifying the health care workers of the directions Friday, said Texas Department of State Health Services spokeswoman Carrie Williams.

But even those medical agreements allow some wiggle room. For example, they say public transit isn't outright banned but "should be discussed with the public health authority."

Officials say 125 friends, family, doctors, nurses, technicians, ambulance drivers and others may have been exposed in the days before Duncan died on Oct. 8. Since then, the two nurses have tested positive and at least 18 other people in Texas and Ohio have been identified as secondary contacts who also merit watching.

At first, the monitoring sounded relatively simple: track down the contacts, monitor them with least twice daily temperature records and test people who develop symptoms for Ebola. State officials would be in charge, working with the CDC and Dallas County authorities.

But for a time after Pham was diagnosed with Ebola, different hospital workers had different levels of monitoring, based in part on their exposure risk. Some self-reported their temperatures. Some continued to care for patients. Hospital spokesman Wendell Watson on Saturday referred all questions about the facility's monitoring practices to county officials.

The county moved Duncan's girlfriend, Louise Troh, her 13-year-old son, Duncan's nephew, and a family friend from their apartment to a guarded house in an undisclosed location, where a health official comes by twice a day and takes their temperatures. The unusual confinement order was imposed after the family failed to comply with a request not to leave their apartment, Jenkins said.

Pham and Vinson have been taken to medical centers with isolation units in Maryland and Atlanta. There are four such centers in the U.S.

At the National Institutes of Health medical center in Bethesda, Maryland, spokeswoman Amanda Fine says staff involved in caring for people with Ebola are given thermometers and instructions and must measure and submit body temperatures twice daily.

Taylor Wilson, a spokesman for the Nebraska isolation unit, which has also been treating Ebola patients, said that every time health care workers go into the unit, they must stop and take their temperature and other vital signs and log the results. They are also advised to keep an eye out for any symptoms.

He said that there are no restrictions on the staff's movements outside of work.

In Washington, President Barack Obama presided at a rare Saturday evening meeting of Cabinet officials and advisers on health and security to receive an update on domestic Ebola cases and the status of tracing, contacting and monitoring people who may have come into contact with Ebola patients in Dallas. The meeting included a discussion of broader steps to increase the preparedness of the nation's health sector, the White House said.

___

Associated Press writer Emily Schmall contributed to this report from Fort Worth.


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Startup̢۪s software helps protect workers from emails sent by imposters

Boston University, Target and the New York Times in the past year all have been victims of targeted "phishing" attacks, in which hackers posing as employees' contacts have gotten them to open emails and unwittingly share their credentials or infect their employers' networks.

But a new, Boxboro-based startup and MassChallenge finalist is giving companies and their employees the tools to fight back.

Astra IDentity's PhishingGuardian software uses patented technologies to combine big data processing and behavioral analytics to protect employees against emails that may be from imposters.

"A lot of people think a spam filter protects them from phishing attacks, but it only filters junk mail," said Gagan Prakash, Astra IDentity's founder and CEO. "It doesn't detect imposters because the email looks like it's from someone the recipient knows and trusts."

A hacker targeting a certain company uses social networks and other Internet data to find employees with access to the company's data or systems.

The hacker identifies other people the employees may know and then creates a fake but recognizable email address to impersonate a colleague or boss.

From that fake address, the hacker sends the employees a personalized email with a link or attachment. The email bypasses the spam filter and lands in the employees' inboxes, where they open it because it looks like the "real deal," Prakash said.

Then they click on the enclosed link, allowing the hacker to steal their credentials, or open an attachment, causing damaging software known as "malware" to infect the computer, smartphone or the company's entire network.

"There's a full-fledged black market for all this information the hacker steals because the money's there," Prakash said.

For $2 per person per month, Astra IDentity's software guards against this by monitoring a company's email traffic and building a "behavioral fingerprint" based on the communication pattern of employees and their contacts, such as whether the sender typically uses a computer, smartphone or tablet; what geography the sender's emails come from; and whether the sender's emails usually contain typos.

PhishingGuardian then crunches all this data, comparing incoming emails to the fingerprint, and alerts employees or the company about emails from potential imposters.

Dale Johnson, a Woburn -based email and security consultant, began using the software last month, and it alerted him that someone was trying to get him to click on a link and log in to what turned out to be a fake bank.

"I have customers who need this product because right now, phishing is the biggest threat to businesses and their employees," Johnson said. "If you can get into the right person's computer, you can have access to a whole company. And that is the ultimate nightmare."


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Bake sales boost breast cancer fight

There's nothing like a dose of nostalgia to get co-workers to donate to a worthy cause, especially when there's food involved.

As part of Breast Cancer Awareness Month, the Boston-based nonprofit Bakes for Breast Cancer revisited the days of selling brownies in the school cafeteria with its Office Bake Sale fundraising campaign.

During October, participants bring homemade treats (or store-bought — no judging) to sell at their workplace. All proceeds go into donation jars for breast cancer research.

Bakers can go to the Bakes for Breast Cancer website to download a sign-up calendar to post in their office.

"I jumped right on the idea because I thought it was a fun way for our staff to do stuff together that's tasty, but also for a good cause," said Scott Bernstein, COO at the Needham-based marketing group Mittcom.

So far, five Mittcom employees have brought in treats, with three more in the works for later this month. Bernstein said he's seen cookies, cupcakes and Halloween-themed goodies (his own), but the most popular were fresh-baked pies from the Italian bakery A & L in East Boston.

Employees drop off baked goods in the office kitchen, along with their business card. As they come and go throughout the day, workers can grab a treat and leave a donation in the jar. "At first people were throwing in change or a buck, but as people are getting more committed to the cause, we're starting to see larger donations," said Bernstein, whose mother is a breast cancer survivor. He said Mittcom plans to match donations from the bake sale.

Local celebrity chef Todd English, whose sister, Wendy, passed away from breast cancer in 2006, is a devoted supporter of Bakes. His Boston restaurant Figs is participating in the sale, as well as promoting the nonprofit on its menus. English said the key to bake-sale treats is not to be too fancy.

"Stick to good, basic homemade desserts that everyone always loves," English said. "I'd encourage people to bake something that's a family favorite. Anything from a strudel, if you're German, to an old English pound cake. Those kinds of things work on all levels."

Through partnerships with restaurants and bakeries, Bakes has raised almost $1 million for the cause since its foundation in 1999.

"We need to do anything we can to spread awareness," said English. "Maybe one day we won't have to do this anymore."

Go to bakesforbreastcancer.org/bake-sale to download a calendar for your office.


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Guidelines suggest when tires should be repaired

I have a car that I drive only a couple of thousand miles a year. It had a slow leak in a tire more than 10 years old. I took it to a tire dealer who said that because of its age, he couldn't touch it. He told me that in Minnesota it's a $10,000 fine if he did so. Of course, he was happy to sell me a new tire. I then took it to local mechanic who pulled the small nail out, patched it and sent me on my way. Setting aside the safety issue of driving on 10-year-old tires, is there a law or regulation that prevented that dealer from repairing my tire?

While there have been efforts at both federal and state levels to develop tire age and tire repair regulations, to my knowledge there are no specific laws yet. Each tire manufacturer has its own repair guidelines and the Rubber Manufacturers of America, (RMA) publishes specific guidelines for tire repair.

In general, a tire can be repaired if the damage is
1⁄4-inch or smaller, not in proximity to other damage, is confined to the tread block area of the tire and the tire is deemed reparable.

Methods of repair include the one-piece stem and patch repair or the two-piece stem and patch repair, requiring that the tire be dismounted from the wheel. The RMA recommends never repairing a tire with just a plug, or just a patch.

Our 2011 Subaru Legacy has a dashboard panel lit up like a Christmas tree. The following lights remain on constantly: check engine light, traction, brake light and the cruise control light flashes. Since the check engine light remains constant, the service center says it is OK to drive even though the cruise control doesn't work. Before taking it in to a dealer for diagnostic testing, having a second opinion might help.

The car isn't "OK" to drive — there's a fault in the system, likely in the ABS/traction control. And it really isn't "OK" to drive if the brake warning light is on. This light illuminates if the brake fluid level is low, the parking brake is still on or if there's an imbalance of hydraulic pressure in the system.

So take the car to your dealer to have its diagnostic equipment identify what's wrong. The basic Subaru OE warranty is three years/36,000 miles, the powertrain is covered for five years/60,000 miles and the federal emissions warranty covers the computer and catalytic converter for eight years/80,000 miles.

Subaru issued TSB #06-41-11 dated October 2011 that identified low battery voltage — DC C0074/C0075 — as a possible cause for multiple warning lights.

I have a 2011 Ford Escape. The air conditioning works in the morning after it has been in the garage all night, but the minute it sits outside in a normal heat it no longer works. It blows hot air only. I have had Ford check it three times and it works when I drive off, but then stops working. I took it to an independent mechanic who replaced the hose, not cheap, and again it worked for one day and then failed. He then put dye to try and trace the problem but that failed as well. He was stumped and said to take it back to Ford.

At this stage, it is possible the A/C has been overcharged with refrigerant. As ambient temperatures rise, pressures in the A/C system also rise.

The system pressure switch will disable the compressor when pressures climb above a certain threshold, usually in the 300- to 400-psi range.

Other possible causes for overpressure are moisture/debris partially blocking the expansion valve, radiator fans not working and restricted airflow through the condenser.

If the vehicle is still within its three-year/36,000-mile OE Ford warranty, take it back to the dealer.

Paul Brand, author of "How to Repair Your Car," is an automotive troubleshooter, driving instructor and former race-car driver. Readers may write to him at: Star Tribune, 425 Portland Ave. S., Minneapolis, Minn., 55488 or via email at paulbrand@startribune.com. Please explain the problem in detail and include a daytime phone number.


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