On Friday August 20, 2010, 5:54 pm EDT
Recession hits smart-phone
makers in the chips
NEW YORK (AP) -- The
seemingly recession-proof smart phone is suffering from a side effect of the
rough economy: Manufacturers simply can't build enough of the gadgets because
chipmakers that rolled back production last year are now scrambling to play
catch-up.
The chip shortage means
Apple Inc.'s rivals are having trouble making enough phones to compete with the
iPhone, a problem expected to persist through the holidays. It's also affecting
wireless carriers, some of which are seeing delays in improving their networks,
and it could even raise computer prices.
There isn't an
across-the-board shortage of chips, but rather problems with certain components
here and there. If just one of the 20 to 30 critical chips that go into a smart
phone is unavailable, the whole production line screeches to a halt.
Jobless rate drops in 18
states, rises in 14
WASHINGTON (AP) --
Unemployment fell in fewer states in July than in the previous three months, a
sign that the pace of job growth has slowed.
The jobless rate dropped in
18 states and Washington, D.C. last month, the Labor Department said Friday. It
rose in 14 states and stayed the same in 18. That's a slowdown from the past
three months when unemployment fell in more than 30 states.
Nationwide, the
unemployment rate remained stuck at 9.5 percent in July.
The report suggests many
states are seeing less improvement in the job market than earlier this year. But
there were also positive signs that indicate the recovery hasn't stalled out.
Nearly 50 percent leave
Obama mortgage-aid program
WASHINGTON (AP) -- Nearly
half of the 1.3 million homeowners who enrolled in the Obama administration's
flagship mortgage-relief program have fallen out.
The program is intended to
help those at risk of foreclosure by lowering their monthly mortgage payments.
Friday's report from the Treasury Department suggests the $75 billion
government effort is failing to slow the tide of foreclosures in the United
States, economists say.
More than 2.3 million homes
have fallen into foreclosure since the recession began in December 2007,
according to foreclosure listing service RealtyTrac Inc. Economists expect the
number of foreclosures to grow well into next year.
Stocks slide as investors'
malaise continues
NEW YORK (AP) -- Stocks
closed moderately lower Friday as investors' pessimistic view of the economy
deepened.
There was little reason for
investors to buy. There were no reports to offset Thursday's disappointing news
that growth in the domestic economy continues to slow. The Dow Jones industrial
average fell 57 points a day after falling 144. The other major indexes also
fell moderately.
Overseas markets also fell,
reacting to reports Thursday that initial claims for unemployment benefits in
the U.S. rose last week and manufacturing in the Mid-Atlantic region shrank.
New guidelines could rule
out many oil claims
MIAMI (AP) -- The latest
guidelines for BP's $20 billion victims compensation fund say the nearer you
are geographically to the oil spill and the more closely you depend on the Gulf
of Mexico's natural resources, the better chance you have of getting a share of
the money.
Also, a second set of rules
expected this fall will require that businesses and individuals seeking
compensation for long-term losses give up their right to sue BP and other
spill-related companies -- something that could save the oil giant billions.
The new rules for the
claims process were released Friday by Washington lawyer Kenneth Feinberg, who
was picked by President Barack Obama to run the fund and previously oversaw
claims for 9/11 victims. Beginning Monday, the claims will be handled by
Feinberg rather than BP, which is still footing the entire $20 billion bill.
NYC airport trades fast
food for sit-down service
NEW YORK (AP) -- Forget
about greasy french fries, soggy pizza or that sandwich that's been sitting out
for hours. Filet mignon, crispy duck confit and crab cakes are taking off at
the airport.
Delta Air Lines is putting
13 new restaurants, bars and cafes in its LaGuardia Airport terminal by next
summer, opening the first four Saturday morning.
With travelers waiting
longer because of more extensive security checks and flight delays, airports
across the country are swapping out fast-food joints for sit-down restaurants.
It's part of a trend of airlines serving their customers before they board
their flights, experts say.
Tribune Co. says
negotiations have failed
WILMINGTON, Del. (AP) --
The Tribune Co.'s plan to emerge from bankruptcy has unraveled in the wake of
an independent report concluding that talks leading up to the company's 2007
leveraged buyout bordered on fraud, attorneys said Friday.
The report released last
month by a court-appointed examiner forced Tribune and its creditors to rethink
a settlement agreement that formed the basis of its reorganization plan.
Germans wary of Google
Street View
BERLIN (AP) -- Germans have
long harbored an obsession about protecting privacy, with memories of Nazi-era
denouncements of neighbors and East German secret police snooping still alive.
Now they have found a new target for their fears: Google "Street
View."
Under strong government
pressure, the Internet giant made Germany the only country where people can
request to have images of their homes deleted from the project before it goes
online in November, along with other concessions.
It has all stirred debate
about how to define and defend privacy in the digital age and revealed a
yawning generational divide between those old enough to recall invasive past
regimes and those who have grown up with the Internet.
Hormel 3rd-quarter net
income rises
NEW YORK (AP) -- Hormel
Foods Corp. said strong sales of its grocery products such as Hormel Chili
helped its net income rise 11 percent in the third quarter despite higher
commodity costs.
The maker of Spam, Dinty
Moore and other foods on Friday raised its earnings guidance for the year on
the results, but the CEO said the company continues to face rising costs,
especially for pork.
The meat industry is slowly
recovering after a downturn brought on by high ingredient costs and low selling
prices because of oversupply and weak demand. As demand improves, the meat
producers have cut production, causing prices to rise.
By The Associated Press
The Dow Jones industrial
average fell 57.59, or 0.6 percent, to 10,213.62. The Standard & Poor's 500
index fell 3.94, or 0.4 percent, to 1,071.69, while the Nasdaq composite index
rose 0.81, or 0.04 percent, to 2,179.76.
Benchmark crude for October
delivery lost 97 cents to settle at $73.82 a barrel on the New York Mercantile
Exchange.
In other Nymex trading in
September contracts, natural gas for September delivery settled 5.4 cents lower
at $4.117 per 1,000 cubic feet; heating oil declined 2.97 cents to $1.9710 a
gallon and gasoline lost 0.36 cent to $1.9251 a gallon.
Brent crude settled down
$1.04 at $74.26 a barrel on the ICE futures exchange.