Business News Blog

Stocks End Flat Following Fed Comments

Sat, 30 Jun 2007 02:01:36 +0000

NEW YORK (AP) -- Stocks finished flat Thursday after the Federal Reserve said the economy appeared to be growing at a "moderate" pace but offered a cautious reading on inflation. The Dow Jones industrial average, which at one point had been up 70 points after the Fed decision, ended down 5.45, or 0.04 percent, at 13,422.28. Broader stock indicators finished mixed. The Standard & Poor's 500 index slipped 0.63, or 0.04 percent, to 1,505.71, and the Nasdaq composite index rose 3.02, or 0.12 per...

China legislature approves new labor law

Sat, 30 Jun 2007 02:01:36 +0000

BEIJING (AP) - China has approved what's expected to be the most significant change in Chinese labor rules in more than a decade.

State media report the contract labor law is a bid to improve basic workers' rights amid widespread complaints of unpaid wages, forced labor and other abuses. It sets standards for labor contracts, use of temporary workers and severance pay.

According to the official Xinhua News Agency, the law approved today by the Standing Committee of the National People's Congress, China's parliament, is to take effect next January first.

U.S. detains farmed seafood from China

Sat, 30 Jun 2007 02:01:36 +0000

WASHINGTON (AP) ? Farmed seafood has now joined tires, toothpaste and toy trains on the list of tainted and defective products from China that could be hazardous to a person's health.

Federal health officials said Thursday they were detaining three types of Chinese fish ? catfish, basa and dace ? as well as shrimp and eel after repeated testing turned up contamination with drugs unapproved in the United States for use in farmed seafood.

The officials said there have been no reports of illnesses nor do the products pose any immediate health risk. They stopped short of ordering a ban on the fresh and frozen seafood.

Monsanto 3Q earnings surge 71 percent

Sat, 30 Jun 2007 02:01:36 +0000

ST. LOUIS (AP) Seed company Monsanto Co. said Thursday its fiscal third-quarter earnings surged 71 percent on increased U.S. sales of corn seed, traits and herbicide.

Third-quarter net income surged to $570 million, or $1.03 per share, from $334 million, or 60 cents per share, in the prior year. Profit from continuing operations totaled $565 million, or $1.02 per share, compared with $322 million, or 58 cents per share, a year ago.

Quarterly net sales jumped 23 percent to $2.84 billion, from $2.31 billion in the prior-year period.

Report: China Raises Minimum Wages

Sat, 30 Jun 2007 02:01:36 +0000

BEIJING (AP) -- China's government has ordered minimum wages raised to help the poor cope with soaring food costs, a state news agency reported Friday. Chinese leaders have been alarmed by a spike in inflation that saw the price of eggs rise 37.1 percent in May from their price in the same month last year. Meat and poultry were 26.5 percent more expensive in May compared to a year ago. The increase "would have a great impact on low-income families," the Xinhua News Agency said. Local authori...

South Korea, U.S. agree on trade pact

Sat, 30 Jun 2007 02:01:36 +0000

SEOUL, South Korea - South Korea and the United States have agreed on final changes to their free trade agreement, paving the way for its signing on June 30, the prime minister's office said Friday.Prime Minister Han Duck-soo told managing editors of major newspapers and broadcast outlets that Seoul and Washington had agreed to change parts of the agreement to include new U.S. labor and environmental standards for free trade agreements, his office said.Han said the agreement was reached and "tra...

IPhone launch day arrives

Sat, 30 Jun 2007 02:01:36 +0000

SAN FRANCISCO (AP) ? After six months of unprecedented hype, thousands of people Friday will get their hands on the iPhone, the new cell phone that Apple Inc. is banking on to become its third core business next to its moneymaking iPod players and Macintosh computers.

By early evening Thursday, short lines of eager customers were camped out at Apple and AT&T stores across the nation. The gadget, which combines the functions of a cell phone, iPod media player and wireless Web browser, will go on sale in the United States at 6 p.m. Friday in each time zone.

At Apple's flagship store in New York City, the trickle of customers that began queuing up since Monday grew to about 50 people late Thursday, ready to brave yet another rainy night on the pavement of Fifth Avenue, outside the only 24-hour Apple store.

South Korea, U.S. agree on final version of free trade agreement

Sat, 30 Jun 2007 02:01:36 +0000

SEOUL, South Korea (AP) - South Korea and the United States have agreed on final changes to their pending free trade agreement.

The Ministry of Foreign Affairs and Trade says South Korea has "decided to accept a US proposal to change the agreement" to reflect new US guidelines calling for stricter labor and environmental standards for free trade deals.

The ministry says South Korea's trade minister and the US trade representative will sign the agreement tomorrow in Washington.

Union members ratify GE contract

Sat, 30 Jun 2007 02:01:36 +0000

HARTFORD, Conn. (AP) Members of the two largest unions representing General Electric Co. employees have ratified new contracts affecting more than 20,000 workers nationwide, the company and the unions said Thursday.

Almost 80 percent of the voting members approved the deals, which replace contracts that expired June 17. They include a 16 percent pay increase over four years and improved health care benefits, while limiting the increase of health care costs borne by workers.

The Fairfield-based industrial conglomerate reached the tentative agreements this month with its two largest employee unions: the International Union of Electrical, Salaried, Machine and Furniture Workers-Communications Workers of America and the United Electrical, Radio and Machine Workers of America.

Fed leaves interest rates unchanged

Sat, 30 Jun 2007 02:01:36 +0000

WASHINGTON (AP) ? The Federal Reserve held interest rates steady Thursday, extending a yearlong breather for borrowers. Although policymakers observed improvements on inflation, they made clear they were not ready to declare victory on that front.

Wrapping up a two-day meeting, Fed Chairman Ben Bernanke and his central bank colleagues left an important interest rate at 5.25 percent, the same as it was last June. The decision was unanimous.

The Fed's decision means that commercial banks' prime interest rates ? for certain credit cards, home equity lines of credit and other loans ? should stay at 8.25 percent.

Research in Motion's 1Q Earnings Jump

Sat, 30 Jun 2007 02:01:36 +0000

TORONTO (AP) ? Shares of Research In Motion Ltd. surged nearly 17 percent in after-hours trading Thursday after the BlackBerry maker said its first-quarter earnings grew 73 percent on increased sales and subscriber additions.

For the quarter ended June 2, Waterloo, Ontario-based RIM earned $223.2 million, or $1.17 per share, up from $128.8 million, or 67 cents per share, in the year-ago quarter. Adjusted net income, which excludes a $5.3 million stock option expense, came to $228.5 million, or $1.20 per share, RIM said.

The positive results came a day before Apple Inc.'s heavily hyped iPhone is launched. The iPhone can handle phone calls, e-mail, Web browsing, music and videos.

Businesses help workers to lose weight

Sat, 30 Jun 2007 02:01:36 +0000

CHICAGO (AP) -- A burgeoning industry of wellness advisers, counselors and consultants is booming as corporate America tries to increase productivity and control insurance costs by helping its employees get healthy and shed pounds. The change is fueled by well-meaning, cost-conscious executives who are looking for ways to trim bottom lines along with waist lines. "The truth is CEOs are the ones that have to address it," said Mike Huckabee, the Republican presidential candidate and former gov...

China approves new contract labor law

Sat, 30 Jun 2007 02:01:36 +0000

BEIJING (AP) -- China passed a new contract labor law on Friday in a bid to improve basic workers' rights amid widespread complaints of unpaid wages, forced labor and other abuses, state media said Friday. The approval follows 18 months of deliberation and a rare government request for public comment on the law. It is expected to be the most significant change in Chinese labor rules in more than a decade by setting standards for labor contracts, use of temporary workers and severance pay. Th...

Siegelman, Scrushy to Appeal Sentences

Sat, 30 Jun 2007 02:01:36 +0000

MONTGOMERY, Ala. (AP) -- Attorneys for former Alabama Gov. Don Siegelman and former HealthSouth CEO Richard Scrushy said they would appeal their sentences in a bribery and corruption case the judge said damaged public trust in state government. Siegelman was sentenced Thursday to more than seven years in federal prison and Scrushy got nearly seven years. U.S. District Judge Mark Fuller ordered both immediately taken into custody, not even giving them time to talk with their families. Siegelm...

Oil Spikes Above $70 a Barrel

Sat, 30 Jun 2007 02:01:36 +0000

Oil futures spiked above $70 a barrel on Thursday for the first time since Sept. 1 on a government report that showed gasoline inventories dropped unexpectedly as the summer driving season neared its peak.Retail gasoline prices, meanwhile, broke a monthlong decline and held steady overnight at a national average price of $2.975 a gallon, according to AAA and the Oil Price Information Service. Gas prices had been falling steadily since their May 24 peak of $3.227 a gallon.Analysts warned that pump prices could start rising again if there's an imbalance between demand and supply.

"Gasoline demand stays strong," said Paul Horsnell, an analyst at Barclays Capital. "While it is still early in the driving season, June demand has now moved close to the all-time record for any month."

Siegelman, Scrushy Get Prison Terms

Fri, 29 Jun 2007 20:01:33 +0000

Former Alabama Gov. Don Siegelman was sentenced to more than seven years in federal prison and former HealthSouth CEO Richard Scrushy got nearly seven years Thursday in a bribery and corruption case that the judge said damaged public trust in state government.

Supporters of both men had testified at their sentencing hearing, describing the positive impact they have had in Alabama during their careers, as attorneys pleaded with U.S. District Judge Mark Fuller to show mercy.

"While it is true the good far exceeds the bad, I must impose a fair punishment to reassure all that come before this court that justice is blind," Fuller said in sentencing Siegelman.

Bank Regulators Finalize Mortgage Rules

Fri, 29 Jun 2007 20:01:33 +0000

WASHINGTON — Banking regulators on Friday completed guidelines that call on lenders to strictly evaluate borrowers' ability to repay home loans.

The guidance issued by the Federal Reserve and the other four federal agencies that regulate banks, thrifts and credit unions, comes in response to an increasingly troubled housing market and pressure from Congress. Home prices have been falling and mortgage defaults have been rising, especially among so-called subprime mortgages given to buyers with shaky credit.

The standards, which are voluntary and only apply to federally regulated lenders, calls for verification of borrowers' incomes in most cases. Consumers should have clear disclosures of their mortgage terms and should have at least 60 days to refinance a loan that is about to jump up to a higher rate without penalty.

Oil prices back above $70 a barrel

Fri, 29 Jun 2007 20:01:33 +0000

VIENNA, Austria (AP) -- Oil prices shot back up above the psychologically important $70 mark on Friday, trading above that level for the second time in two days on worries about gasoline supplies. With most U.S. refineries expected to increase output in the coming months after finishing maintenance, pressure on gasoline was expected to drop. Still, prices could remain high because increased refinery capacity puts greater demands on crude availability. Light, sweet crude for August delivery r...

Palm profits plunge

Fri, 29 Jun 2007 20:01:33 +0000

SAN FRANCISCO (AP) - Despite record sales of its Treo "smart phone" lineup, Palm is reporting a 43% plunge in fourth-quarter profits.

For the three months ended June First, the company earned 15 cents a share, compared with 25 cents a year earlier. When 1-time charges are excluded, net income for the quarter jumps to 17 cents -- 2 cents more than Wall Street was expecting.

Palm says it sold 750,000 Treos during the quarter -- up 43% from the year-ago period.

Profit up for food maker General Mills

Fri, 29 Jun 2007 20:01:33 +0000

MINNEAPOLIS (AP) -- With the cost of grain and dairy soaring, food maker General Mills on Thursday reported a 1 percent fiscal fourth-quarter earnings increase and said it would look to streamlined operations and price hikes to stay profitable in 2008. The maker of Wheaties and Cheerios cereals, Yoplait yogurt, and Progresso soup said it expected prices for raw materials to rise 5 percent next year, including a $260 million increase in the cost of corn, oats, natural oils and dairy. Chief Ex...

Pasadena Star-News ed promoted

Fri, 29 Jun 2007 20:01:33 +0000

PASADENA, Calif. — Larry Wilson, editor of the Pasadena Star-News since 1995, has been named public editor of the San Gabriel Valley Newspaper Group.

Wilson will be responsible for editorials, opinion and new media initiatives for the group's three daily newspapers: the Star-News, San Gabriel Valley Tribune and Whittier Daily News.

"Larry is without peer in Pasadena as a journalist and commentator, and we are fortunate to offer him another 30 cities to bring within the scope of his sharp analysis and dry wit," SGVN Executive Editor Steve O'Sullivan said.

Oil prices steady at $69 a barrel

Fri, 29 Jun 2007 20:01:33 +0000

SINGAPORE - Oil prices held steady below $70 a barrel Friday in Asia after jumping above that mark in the previous session the first time in ten months on worries about gasoline supplies.Light, sweet crude for August delivery rose 6 cents to $69.63 a barrel in Asian electronic trading on the New York Mercantile Exchange, midmorning in Singapore.The contract settled 60 cents higher at $69.57 a barrel Thursday in the U.S. after rising as high as $70.52 and trading above $70 for several hours.Thurs...

A mixed showing on Wall Street

Fri, 29 Jun 2007 20:01:33 +0000

NEW YORK (AP) - Stocks closed little-changed today after the Federal Reserve did the expected and kept a key short-term interest rate at five and a-quarter percent.

The Dow Jones industrial average finished with a loss of 5.5 points at 13,422. Advancing issues on the New York Stock Exchange led losers 9 to 7 on volume of about 2.8 billion shares. The Nasdaq composite index was up three points at the 2,608 level, with roughly 1.9 billion shares traded. And the S & P 500 dropped a fraction of a point, closing at 1,505.

That the Fed decision was not a "market-mover" was plainly evident. Stocks rallied slightly after the interest-rate announcement but then settled back.

Horse Slaughter Plant to Close, Again

Fri, 29 Jun 2007 20:01:33 +0000

CHICAGO - A federal judge Thursday refused a request from the nation's last operating horse slaughterhouse to remain open, but a legal dispute over a state ban on killing horses for food isn't over.Cavel International Inc.'s site in DeKalb was set to close at midnight Friday, when a temporary court order allowing it to stay open was to expire, according to Cavel attorney Phil Calabrese.The plant, about 60 miles west of Chicago, is the last in the United States that slaughters horses for human co...

iPhone goes on sale today

Fri, 29 Jun 2007 20:01:33 +0000

CUPERTINO, Calif. (AP) - After months of hype, Apple's iPhone is going on sale today.

It will be available starting at six pm local time all across the nation, with all 164 Apple retail stores in the US staying open until midnight.

Customers will be limited to two iPhones per purchase on a first come, first served basis.