On Thursday January 20, 2011, 6:19 pm
Google co-founder Page will
be CEO in shake-up
SAN FRANCISCO (AP) --
Google Inc. co-founder Larry Page is taking over as CEO in an unexpected
shake-up that upstaged the Internet search leader's fourth-quarter earnings.
Page, 37, is reclaiming the
top job from Eric Schmidt, who had been brought in as CEO a decade ago because
Google's investors believed the company needed a more mature leader.
Schmidt, 55, will remain an
adviser to Page and Google's other co-founder, Sergey Brin, as Google's
executive chairman.
The changes will be
effective April 4.
The change in command
overshadowed Google's fourth-quarter earnings, which soared past analysts'
estimates as the company cranked up its Internet marketing machine during the
holiday shopping season.
Home sales hit 13-year low;
slow recovery ahead
WASHINGTON (AP) -- The
number of people who bought previously owned homes last year fell to the lowest
level in 13 years, and economists say it will be years before the housing
market fully recovers.
High unemployment and a
record number of foreclosures are deterring potential buyers who fear home
prices haven't reached the bottom. Job growth is expected to pick up this year,
but not enough to raise home sales to healthier levels.
The National Association of
Realtors reported Thursday that sales dropped 4.8 percent to 4.91 million units
in 2010. That was slightly fewer than in 2008, which had been the weakest year
since 1997.
The poor year for sales did
end on a stronger note. Buyers snapped up homes at a seasonally adjusted annual
rate of 5.28 million units in December, the best sales pace since May and the
12.8 percent rise from November was the biggest one-month surge in 11 years.
Gains in mortgage rates may
have spurred some fence-sitters to buy homes in December before rates moved
higher, analysts noted.
Leading indicators rise 1
percent in December
NEW YORK (AP) -- A private
research group's gauge of future economic activity rose in December, suggesting
the economy will strengthen over the next few months.
The Conference Board said
Thursday that its index of leading economic indicators rose 1 percent last
month after a 1.1 percent increase in November. Those are the biggest increases
since March, when the index jumped 1.4 percent.
Economists polled by
FactSet had expected a lower reading of 0.6 percent for December.
The measure had stalled
this summer as Europe's debt crisis and a weak jobs market hit U.S. stocks. It
began accelerating at the end of 2010 as the country's economic condition
improved. The stock market has rallied, the manufacturing sector continues to
grow and consumers and businesses are spending more.
Six of the measure's 10
components increased last month, while two declined and two were steady. The
biggest positive was a jump in December building permits, which suggests home
construction will rise, a boon for the country's troubled housing market. The
National Association of Realtors said Thursday that home sales rose 12.3
percent in December, the fastest pace in seven months.
SEC requires reporting of
data on loans
WASHINGTON (AP) -- Federal
regulators are requiring firms selling securities tied to mortgages, credit
cards and student loans, which froze during the financial crisis, to publicly
report information on the loans that back them.
The Securities and Exchange
Commission adopted new rules Thursday requiring firms selling the securities to
make a thorough review of the loans backing them and then to report the
findings of the review to the public. The markets for securities backed by
bundles of mortgages, auto and student loans, and credit cards have remained
weak since the crisis, largely because investors are unsure about the quality
of the loans.
The rules are required by
the financial overhaul law enacted last summer. They will apply to offerings of
asset-backed securities starting next Jan. 1.
4 HP directors step down in
wake of Hurd fiasco
SAN FRANCISCO (AP) --
Hewlett-Packard Co. is overhauling its board of directors as the world's biggest
technology company by revenue takes heat for the ouster of former CEO Mark Hurd
six months ago.
The shake-up announced
Thursday is the first sweeping change under HP's new leadership, which was put
in place after Hurd's abrupt resignation this summer tanked HP's shares and
triggered lawsuits over the size of his severance payout.
It also marks the first
major alteration to the makeup of a board that has been at the center of
several scandals in recent years, including an episode in which HP paid investigators
to spy on journalists and board members to ferret out the source of boardroom
leaks to the press.
Four of HP's current board
members aren't standing for re-election at HP's annual meeting in March: Joel
Hyatt, John Joyce, Bob Ryan and Lucille Salhany.
Ray Lane, a former Oracle
Corp. executive who took over as HP's chairman after Hurd was forced out,
didn't give a reason for the executives' departures in a statement released
after the market closed.
With Hurd gone, HP's
leadership now consists of Lane and CEO Leo Apotheker, formerly the CEO of
business software maker SAP AG.
Wendy's/Arby's Group
considers Arby's sale
ATLANTA (AP) --
Wendy's/Arby's Group Inc. is considering selling its struggling Arby's business
and concentrating more on its better-performing Wendy's hamburger chain.
The Atlanta restaurant
operator has seen softer sales at both its Wendy's and Arby's locations, but
Arby's has struggled more because its sandwiches -- which can cost $5 or more
-- are more expensive than many other fast-food offerings.
Diners turned instead to
cheaper alternatives during the economic downturn.
The company announced in
November that it would be coming out with lower-priced options at Arby's but
now has decided to explore other options, including potentially shedding the
business. UBS Investment Bank will help Wendy's/Arby's as it explores
alternatives for Arby's.
There are almost 3,700
Arby's restaurants in the chain, which is known best for its roast beef
sandwiches. Wendy's has more than 6,500 restaurants in more than 20 countries.
Focusing on the Wendy's
brand, given its relative size, is the key to maximizing shareholder's return,
Nelson Peltz, the company's chairman, said in a statement Thursday.
Wal-Mart to make, sell
healthier foods
WASHINGTON (AP) --
Wal-Mart, the nation's largest grocer, says it will reformulate thousands of
products to make them healthier and push its suppliers to do the same, joining
first lady Michelle Obama's effort to combat childhood obesity.
The first lady accompanied
Wal-Mart executives Thursday as they announced the effort in Washington. The
company plans to reduce sodium and added sugars in some items, build stores in
poor areas that don't already have grocery stores, reduce prices on produce and
develop a logo for healthier items.
As the largest grocer in
the United States, Wal-Mart's size gives it unique power to shape what people
eat. The grocery business is nearly twice the size of No. 2 competitor Kroger.
The company also has massive influence on products made by other manufacturers
and sold at the store.
China's hot economy surges
10.3 percent in 2010
SHANGHAI (AP) -- China's
economy accelerated in the last quarter of 2010 to expand a blockbuster 10.3
percent for the year as its communist leaders struggle to keep growth on an
even keel while cooling surging prices.
Figures released Thursday
showed growth picking up in the fourth quarter, to 9.8 percent from 9.6 percent
in July-September, as the world's second-largest economy gained momentum
despite moves to curb a torrent of investment that is fanning politically risky
inflation.
The inflation rate was 4.6
percent in December compared with a 28-month high of 5.1 percent the month
before. That put inflation for the full year at 3.3 percent.
The news rattled investors
who fear further moves to dampen credit. Markets across Asia fell, with
Shanghai's benchmark Composite Index sliding 2.9 percent to 2,677.65.
Those pressures may force
Beijing to slow the economy more aggressively, potentially crimping growth in a
world increasingly dependent on Chinese demand.
Verizon challenges FCC's
net neutrality rules
WASHINGTON (AP) -- Verizon
Communications Inc. on Thursday filed a legal challenge to new federal
regulations that prohibit broadband providers from interfering with Internet
traffic flowing over their networks.
In a filing in federal
appeals court in the District of Columbia, Verizon argues that the Federal
Communications Commission overstepped its authority in adopting the new
"network neutrality" rules last month.
The rules prohibit phone
and cable companies from favoring or discriminating against Internet content
and services -- including online calling services such as Skype and Internet
video services such as Netflix, which in many cases compete with services sold
by companies like Verizon.
The FCC's three Democrats
adopted the rules over the opposition of the agency's two Republicans just
before Christmas. Republicans in Congress, who now control the House, have
vowed to try to block them from taking effect. They argue that the rules amount
to unnecessary regulation that will discourage the phone and cable companies
from investing in their networks.
The new rules give
providers some leeway to manage their networks to deal with congestion and
unwanted traffic, including spam, as long as they publicly disclose their
practices.
By The Associated Press
The Dow Jones industrial
average fell 2.49 points, or less than 0.1 percent, to 11,822.8.
The Standard & Poor's
500 index lost 1.66, or 0.1 percent, to 1,280.26. The technology-focused Nasdaq
composite index fell 21.07, or 0.8 percent, to 2,704.29.
Benchmark oil for March
delivery lost $2.22 to settle at $89.59 a barrel on the New York Mercantile
Exchange.
Natural gas for March delivery
rose 1.16 cents to settle at $4.692 per 1,000 cubic feet on the Nymex.
In other Nymex trading,
heating oil lost 3.30 cents to settle at $2.6232 a gallon, and gasoline gave up
5.91 cents to settle at $2.4225 a gallon.
In London, Brent crude
declined $1.58 to settle at $96.58 a barrel on the ICE futures exchange.