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Report: Bank of America to speed job cuts

Written By empatlima on Kamis, 20 September 2012 | 06.46

Sept. 20, 2012 06:34 AM
AP

NEW YORK - -- A published report says Bank of America is accelerating a cost-cutting plan and aims to eliminate 16,000 jobs by the end of the year.

The cuts are part of a previously announced plan by the bank to cut 30,000 jobs.

The Wall Street Journal cites a document given to top management at the bank. The newspaper says the cuts will mean fewer Bank of America branches and a smaller mortgage operation.

A bank spokesman declined comment on the Journal report Thursday.

20 Sep, 2012


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Source: http://www.azcentral.com/business/articles/2012/09/20/20120920report-bank-america-speed-job-cuts.html
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US futures follow global markets lower

Sept. 20, 2012 06:41 AM
AP

NEW YORK - -- U.S. stock futures slid Thursday as disquieting economic data from Europe and Asia, and the prospect of more of the same from the U.S. later in the day, pushed global markets downward.

Dow Jones industrial futures fell 55 points to 13,442. The broader S&P futures dropped 6.4 points to 1,446.80, and Nasdaq futures lost 9.75 points to 2,843.75.

A day after announcing aggressive measures to revive exports, Japan posted a $9.6 billion trade deficit as shipments to beleaguered Europe and Asia shriveled.

Japan has found itself in a tough position, with the strong yen hammering its biggest exporters at the same time that it is forced to import more energy following last year's disaster at the Fukushima Dai-ichi nuclear plant.

The 754.1 billion yen ($9.6 billion) deficit in August was smaller than the $9.9 billion deficit reported a year earlier, Japan's Finance Ministry reported.

Though the deficit was lower than some analysts had forecast, the Japanese economy is under threat from tenacious weakness in Europe and an ongoing confrontation with China, Japan's biggest single overseas market. And China, the world's second largest economy, is facing its own problems.

A business survey showed that China's manufacturing contracted again in September. The country this month revealed that overall economic growth had fallen to a three-year low during the three months ending in June. That is expected to decline further this current quarter.

Economists in Europe were surprised Thursday by a closely watched survey from financial data company Markit. Its purchasing managers' index, a gauge for European Union business activity, slipped to 45.9 in September, from 46.3 the previous month.

That's the lowest in over three years, even with easing in the rate of economic contraction in Germany, the continent's economic powerhouse.

The U.S. Labor Department reported Thursday that the number of Americans seeking unemployment benefits fell only slightly last week to a seasonally adjusted 382,000, painting a bleak landscape for job hunters.

When unemployment applications consistently top 375,000, it typically suggests hiring is too weak to lower the unemployment rate.

New data from the Conference Board later Thursday is expected to show a lackluster first half of the year in the U.S.

Economists predict the board's Index of Leading Indicators will reveal a sluggish first half of the year and that a forward-pointing index showed little strength in August. The report is to be released at 10 a.m. Eastern (1400 GMT).

20 Sep, 2012


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Source: http://www.azcentral.com/business/articles/2012/09/20/20120920us-futures-follow-global-markets-lower.html
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Jobless claims fell by 3,000 last week.

by CHRISTOPHER S. RUGABER - Sept. 20, 2012 06:13 AM
AP Economics Writer

WASHINGTON - -- The number of Americans seeking unemployment benefits fell only slightly last week to a seasonally adjusted 382,000. The level suggests hiring remains weak.

The Labor Department said Thursday that applications declined by 3,000 from the previous week, which was revised up. The four-week average, a less volatile measure, rose for the fifth straight week to 377,750, the highest level in nearly three months.

Applications were skewed higher two weeks ago by the fallout from Hurricane Isaac. A Labor Department spokesman said there were no special factors last week.

Weekly applications are a measure of the pace of layoffs. When they consistently top 375,000, it typically suggests hiring is too weak to lower the unemployment rate.

Employers added only 96,000 jobs last month, below the 141,000 in July and much lower than the average 226,000 added in the first three months of the year. Recent job gains are barely enough to keep up with the growth of the working age population and aren't enough to rapidly drive down unemployment.

The unemployment rate dropped in August to 8.1 percent from 8.3 percent, but only because the number of people working or looking for work fell.

A separate monthly report from the Labor Department earlier this month showed that layoffs were at the lowest level in July in the 11 years the government has tracked the data.

The economy isn't growing fast enough to support much more hiring. It grew at a tepid 1.7 percent annual rate in the April-June quarter, down from 2 percent in the January-March quarter and 4.1 percent in the final three months of last year.

Growth isn't likely to get much better for the rest of this year. Economists expect it to grow at a roughly 2 percent pace. That's typically too weak to create enough jobs to lower the unemployment rate.

High unemployment and sluggish growth prompted the Federal Reserve to announce several major steps to boost the economy last week. Chairman Ben Bernanke said the Fed will buy $40 billion of mortgage-backed securities a month until there is "substantial" improvement in the job market.

Bernanke said at a news conference that high unemployment is "a grave concern" that causes "enormous suffering."

20 Sep, 2012


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Source: http://www.azcentral.com/business/articles/2012/09/20/20120920jobless-claims-fell-by-last-week.html
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Housing reports cheer up U.S. stocks; indexes muted

Written By empatlima on Rabu, 19 September 2012 | 18.57

by Daniel Wagner - Sept. 19, 2012 06:39 PM
Associated Press

A pair of encouraging reports about the housing market boosted U.S. stocks a little Wednesday.

Home sales jumped to the highest level in more than two years in August, the National Association of Realtors said. Sales rose 7.8 percent to a seasonally adjusted annual rate of 4.82 million, the most since May 2010.

Earlier, the government reported that construction of single-family homes in August also was the fastest in more than two years.

Stocks of homebuilders, already up after the construction report, rose sharply after 10 a.m., when the jump in home sales was reported. D.R. Horton Inc. rose 87 cents, or 4.1 percent, to $22.22; Beazer Homes USA Inc. rose 22 cents, or 6.2 percent, to $3.75; and KB Home rose 46 cents, or 3.6 percent, to $13.16.

The gains for broader stock indexes were muted. At its high for the day, the Dow Jones industrial average was up just 62 points.

The housing numbers "are fantastic news," but traders continue to worry about recent discouraging signals this week like downgrades of railroads and a warning from Federal Express that the global economy is slowing, said JJ Kinahan, chief derivatives strategist for TD Ameritrade, a retail brokerage.

"The market is at a bit of a conundrum," Kinahan said. "There are just constantly these mixed signals."

The Dow closed up 13.32 points, or 0.1 percent, at 13,577.96. The Dow is a 4 percent rally shy of its all-time high of 14,164 on Oct. 9, 2007.

The Standard & Poor's 500 index rose 1.73 points, or 0.1 percent, to 1,461.05.

The Nasdaq composite index rose 4.82 points, or 0.2 percent, to 3,182.62.

20 Sep, 2012


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Source: http://www.azcentral.com/business/articles/2012/09/19/20120919housing-reports-cheer-up-us-stocks-indexes-muted.html
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Preservationists: Don't mess with NYC Macy's

by Verena Dobnik - Sept. 19, 2012 06:43 PM
Associated Press

NEW YORK - A $400 million makeover is giving New York's iconic Macy's store a sleek, 21st-century style.

Some preservationists aren't happy about it. They see the overhaul of America's biggest department store as scrapping classic Beaux Arts and Art Deco touches in favor of the latest trend in retail design -- something like an Apple computer store.

"Macy's has Apple fever," said Theodore Grunewald, a New York preservation activist. "Everyone is jealous of Apple, and thinks the secret to the company's success is this beautiful, elegant minimalist design vocabulary they have. But this is about protection of our heritage."

Macy's reconstruction, to be completed in 2015, will add 100,000 square feet to the 1.1 million square feet of existing retail space. Floor-to-ceiling fabric shrouds areas under renovation.

But some sections already have been finished, including the world's largest women's shoe department, which offers 280,000 pairs of shoes -- several thousand displayed in white settings.

Macy's spokeswoman Elina Kazan gushes that the store will be a "spectacular place to shop at an iconic New York City destination."

About 20 million shoppers a year visit Macy's flagship store. The building has nine floors of retail space and covers nearly an entire city block, from West 34th Street to West 35th Street, between Seventh Avenue and Broadway.

It is best known as home of the annual Macy's Thanksgiving Day Parade and as the setting that inspired the beloved 1947 Christmas film, "Miracle on 34th Street."

Originally constructed in 1902 in the Beaux Arts style, it was expanded in the 1930s with plenty of Art Deco details. Most noticeable was a jazzy, geometric coating of marble, encasing more than 100 columns that soar to the ceilings.

Grunewald said the columns will now be simplified, losing the marble and the ornamental toppings that give the space "its pizazz."

"I was stunned they were doing this, making it look like everywhere else in America when they have a little treasure here," said preservationist Christabel Gough of the Society for the Architecture of the City.

Macy's officials said it was premature to compare the renovation to Apple since it is still a work in progress. They said, too, that the plan actually revives some of the building's distinctive features.

Originally, the interior street floor "was one great retail hall, and Macy's asked us to bring it back as one grand space," said Jay Valgora, chief architect for the renovation. "Macy's asked us to bring back the grandeur of the original store, and whenever there's true historic fabric, to restore it."

Also, the original, ornate entrance on 34th Street will return, and some huge old windows that were painted over have been opened again, lighting a new chocolate-and-champagne cafe. Forty-two of the store's original wooden escalators will stay.

Valgora said the old and the new Macy's will "complement each other" in the same light-filled venue.

"I like it -- how organized and open it is," said Rosie Pina, a Manhattan schoolteacher. "Change is good."

Brian Williams, a sports club technician from Queens, joked, "I'm a male, and I don't really care how it looks when I'm shopping."

But standing by the jewelry area near some aging, cream-colored pillars and looking over at a gleaming, snow-white new section, he added: "I like the older better -- it feels warmer, more at home."

20 Sep, 2012


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Source: http://www.azcentral.com/business/articles/2012/09/19/20120919preservationists-dont-mess-nyc-macys.html
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Groupon adds payment service

by Barbara Ortutay - Sept. 19, 2012 06:41 PM
Associated Press

NEW YORK - Groupon launched a payment service Wednesday that allows businesses to accept credit cards using an iPhone or iPod Touch, becoming the latest company to enter the growing mobile-payments market.

The announcement sent the online deals company's stock up nearly 6 percent. Groupon shares climbed 26 cents to $4.95 in midday trading. The Chicago-based company went public in November at a stock price of $20.

Groupon Payments is aimed mainly at businesses that offer deals through the company, though they can use the system to process any credit-card transaction. A test program allows other merchants to use the service, but at higher rates.

Groupon's technology has been tested in the San Francisco Bay area and will go up against eBay Inc.'s PayPal unit and Twitter co-founder Jack Dorsey's Square. Those services also allow merchants to swipe credit cards on their phones using a small card-reader attachment.

Groupon is charging MasterCard, Visa and Discover swipes at a 1.8 percent rate plus 15 cents for each transaction. American Express will be assessed a 3 percent fee plus 15 cents.

In comparison, Square charges 2.75 percent per swipe, or $275 a month. PayPal charges 2.7 percent. These fledgling services are also up against traditional credit card processors.

Groupon has seen a sharp decline in its stock price since going public. With Groupon Payments, the company is trying to broaden the array of services it offers to merchants.

Groupon says merchants can use its payments service to add tips and taxes, and email receipts.

20 Sep, 2012


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Source: http://www.azcentral.com/business/articles/2012/09/19/20120919groupon-adds-payment-service.html
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China tightens mineral control

by Joe McDonald - Sept. 19, 2012 06:44 PM
Associated Press

BEIJING - China has cut the number of permits for rare earths mining in a new move to tighten controls over the exotic minerals needed to manufacture mobile phones, electric cars and other high-tech goods.

The Ministry of Land and Resources decided to cut the number of mining permits by 40 percent from 113 to 67, China Central Television said Wednesday. The brief report gave no indication how that was expected to affect the amount of rare earths produced.

The announcement comes amid tensions between Beijing and Tokyo over control of a group of uninhabited islands in the East China Sea. Beijing temporarily suspended rare earths shipments to Japanese buyers the last time tensions over the islands flared in 2010 but there was no indication whether Japan might be affected by the latest change.

Beijing has alarmed global manufacturers by restricting production and exports while it tries to build up its own processing industry to capture profits that flow to U.S., Japanese and European companies that use rare earths to make lightweight magnets, batteries and other products.

China has about 30 percent of world supplies of rare earths but accounts for more than 90 percent of production. Its trading partners say quotas and taxes push up rare earths prices abroad, giving buyers in China an unfair advantage.

The United States, the European Union and Japan challenged Chinese controls in a World Trade Organization complaint in March. Chinese officials say the controls are in line with WTO rules and necessary to conserve dwindling reserves and reduce environmental damage from mining.

Rare earths are 17 minerals used to make goods including hybrid cars, weapons, flat-screen TVs, mobile phones, mercury-vapor lights and camera lenses.

The restrictions are especially sensitive at a time when governments are trying to boost exports to reduce unemployment. The United States and Europe want to increase sales of high-tech goods that include products made with rare earths.

The United States, Canada, Australia and other countries also have rare earths but most mining stopped in the 1990s as lower-cost Chinese ores came on the market.

Chinese officials have expressed hope that foreign companies that use rare earths will shift production to China.

Last month, Beijing tightened controls on rare earths mining and smelting, announcing minimum production levels for companies. State media said that might result in 20 percent of the country's production capacity being shut down.

The government also has limited the number of companies permitted to export rare earths.

Beijing's restrictions have prompted producers to announce plans to reopen or develop mines in California, Canada, India, Russia, Malaysia and elsewhere.

20 Sep, 2012


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Source: http://www.azcentral.com/business/articles/2012/09/19/20120919china-tightens-mineral-control.html
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Peoria entertainment/hotel plan closer to reality

by Sonu Munshi - Sept. 19, 2012 06:34 PM
The Republic | azcentral.com

If Peoria city officials have anything to say about it, Glendale won't be the only West Valley city with a thriving entertainment district.

In fact, Peoria aims to create a vibrant entertainment district and boutique hotel unlike any in the West Valley by the time Super Bowl XLIX hits Glendale in three years.

The city has been working with developers for more than a year to expand 83rd Avenue's restaurant row, which includes the city's spring-training ballpark and a dinner theater. The city recently informally christened the area P83 and seeks to build buzz.

Peoria developer Mike Oliver envisions an eight-story hotel with a rooftop lounge, boutique shops, trendy restaurants and upscale apartments on what now is ballpark parking lots.

Oliver's plan to start construction last summer vaporized after losing an investment partner. Now, he has teamed with Scottsdale-based Chandler Hotel Group. They formed Peoria Sports Park LLC and hope to break ground by April.

Before that, developers and Peoria officials must hammer out a deal for the project on 17 acres of city-owned land.

To jump-start the $130 million project, the city would lease land to the developers and pay for a roughly $30 million parking garage to make up for the lost stadium parking. Details must be worked out as part of the talks.

Features

The developers want to distinguish their project from Glendale's Westgate City Center or Arrowhead Towne Center.

They're looking to the Grove in Los Angeles for inspiration.

The popular Grove is a celebrity-sighting spot with a trolley to take visitors around the complex.

There was no talk of Hollywood celebs or a tram in Peoria, but the idea is to create a pedestrian-friendly destination with live music and unique entertainment such as short 3-D shows flashed on the exterior of a building. Think sea life splashing out of the ocean and over visitors' heads. During spring training, the show could take on baseball themes.

"It's truly going to be a project that will be the talk of the town," Oliver said.

Much of the project would emphasize light and height.

"These two features create atmosphere, which in turn creates excitement," Oliver said.

He compared it to a Disney World-type experience at night, lit up with music and a family atmosphere.

A bowling alley also is being considered, along with eateries. Oliver said they are targeting a mix of known, upscale restaurants and local offerings, from sushi to breakfast.

Don't expect an Olive Garden, he said.

The hotel would be critical as it would draw foot traffic to the retail shops and create a 24/7 atmosphere.

"We're looking at up to 200,000 people a month out there just because of the hotel," Oliver said.

Zoning is in place for as much as a 10-story hotel, but Jared Chandler, whose group has properties across the country, expects to stick with eight stories for now.

The plan is to build a boutique hotel, a unique brand with the Hilton name attached to it. Chandler compared it to theWit in Chicago, which is associated with Doubletree of Hilton.

Chandler said the hotel group was interested in the project in part because of the potential to contract with the San Diego Padres and Seattle Mariners, the city's two spring-training teams, as it did in Scottsdale with its Hampton Inn property near Salt River Fields at Talking Stick.

Peoria economic-development Director Scott Whyte and Oliver touted the new partnership with Chandler for his hotel background, which would mean they don't have to look for an anchor hotel. The developers hope to break ground on the hotel and parking garage at the same time, followed by the apartments and retail shops.

Changes

The city's obligation would be to build the parking garage to replace the lost surface spaces. However, the city now thinks it can accomplish this with one structure instead of two. The parking garage could go up along Mariners Way. The city still is in talks with the Mariners and the Padres about the parking garage's placement and height, and how it would serve fans during spring training.

Peoria would use Municipal Development Authority bonds to raise about $30 million for construction and pay it off with the city's half-cent sales tax.

City officials say the project would require no significant improvements on 83rd Avenue for increased traffic.

Peoria leaders initially had hoped to place digital billboards along Loop 101 to help generate revenue for the garage. They nixed the idea because of uncertainty about how soon the signs could go up. The city continues to explore digital billboards as a future revenue generator.

Officials are in the midst of public meetings and a survey about the billboards.

Mayor Bob Barrett, after a recent update on the project, said he's excited and hopes things come together.

"If all the kinks work out, this would be a great addition to Peoria," Barrett said.

20 Sep, 2012


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Source: http://www.azcentral.com/business/articles/2012/09/19/20120919peoria-entertainment-hotel-plan-closer-reality.html
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Five Arizonans rank among the wealthiest 400 Americans

5. Arturo Moreno

Arturo Moreno, 66, is a former billboard executive who owns the Los Angeles Angels. Net worth: $1.1 billion. Moreno ranks number 392 out of the 400 wealthiest Americans.

4. Peter V. Sperling

Peter V. Sperling is 52, the son of University of Phoenix founder John Sperling. He has been with Apollo Group since 1983 and was appointed Vice Chairman of the Board of Directors in June 2008. Net worth: $1.15 billion. He is number 388 on the list.

3. Bob Parsons

Parsons, the 61-year-old founder and executive chairman of Scottsdale domain name registrar Go Daddy, ranks No. 311 this year. Net worth: 1.5 billion.

Dorrance2. Bennett Dorrance

Real estate executive Bennett Dorrance, 66, whose wealth largely derives from a family stake in Campbell Soup, was the second-wealthiest Arizonan, ranking No. 250 on national list. Net worth: $1.9 billion.

Halle1. Bruce Halle

Bruce Halle, 82-year-old founder Discount Tire, is the wealthiest person in Arizona. He is No. 92 on the list of 400 richest Americans. Net worth: $4 billion.

Halle is shown here with his wife, Diane, in March, 2012.

20 Sep, 2012


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Source: http://www.azcentral.com/business/articles/2012/09/19/20120919sept-2012-forbes-list-richest-arizonans-prog.html
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Arizona alleges illegal prices hikes of prescription drugs

by Ken Alltucker - Sept. 19, 2012 02:19 PM
The Republic | azcentral.com

Drug wholesaler McKesson Corp. improperly raised the prices of brand-name prescription drugs, such as Allegra, Lipitor and Nexium, costing Arizona consumers and businesses millions of dollars, the Arizona Attorney General alleged in a lawsuit.

The Maricopa County Superior Court lawsuit filed Sept. 14 alleges that McKesson, the nation's largest drug wholesaler, "artificially inflated" the average wholesale price of more than 400 brand-name prescription drugs, and theextra costs were passed along to Arizona businesses and consumers.

"The prices of nearly all brand-name prescription drugs were inflated, including several of the most popular drugs on the market," Arizona Attorney General Tom Horne said in a press release issued today.

McKesson purchases drugs from pharmaceutical companies and sells them to retailers, including Albertson's Costco, Safeway, Target, Wal-Mart. The lawsuit alleged that McKesson raised the spread between the average wholesale price charged to retailers and the amount it paid for the drugs.

The lawsuit alleged that the marked-up prices were passed along to health insurers, businesses and consumers.

Representatives of the San Francisco-based company did not immediately return calls .

Horne cited the example of the acid-reflux drug Nexium, which McKesson marked up 5 percent in 2004 for an additional $100 million profit based on $4 billion in sales of the drug that year, Horne said.

Among the 400 brand-name drugs that the lawsuit alleges were improperly marked up: Allegra, Azmacort, Celebrex, Coumadin, Flonase, Lipitor, Neurontin, Nexium, Prevacid and Valium.

"Since this claim alleges markup irregularities on more than 400 drugs over multiple years, the consumer damages were enormous," Horne said.

The lawsuit seeks penalties of $10,000 for each violation of Arizona's Consumer Fraud Act.

It's not the first time Arizona has waged a legal battle against San Francisco-based McKesson.

Earlier this month, The Arizona Court of Appeals rejected the Arizona Medicaid program's effort to levy more than $200 million in reimbursement and penalties against McKesson. The court did not address the Arizona Health Care Cost Containment System's allegations that McKesson overcharged the state program for drugs and other products, but the court said Arizona's effort to collect money from McKesson based on the "scheme" was beyond its reach.

An AHCCCS investigation found that McKesson raised the average wholesale price 5 percent, increasing the Medicaid program's costs by more than $50 million.

AHCCCS demanded nearly $112 million from McKesson based on its own regulations, which allow it to recover twice as much as it lost. The agency also levied $101 million in penalties.

McKesson countered that AHCCCS had no right to assess such penalties, and the appellate court agreed.

20 Sep, 2012


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Source: http://www.azcentral.com/business/articles/2012/09/19/20120919arizona-prescription-drugs-prices-lawsuit.html
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