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July 27, 2011

McDonald’s adds apple slices to Happy Meals

Filed under: Uncategorized, business — Tags: , , , — Snowman @ 3:20 am

An apple a day may keep the doctor away. But when you put it in a Happy Meal, it might help keep regulators at bay, too.

McDonald’s on Tuesday said it will add apple slices and reduce the portion of French fries in its children’s meal boxes beginning this fall, effectively taking away consumers’ current choice between either having apples with caramel dip or fries as a Happy Meal side.

The move comes as fast-food chains face intense scrutiny from health officials and others who blame the industry for childhood obesity and other health-related problems.

Critics wasted no time complaining that McDonald’s changes don’t go far enough. Kelle Louaillier, executive director of Corporate Accountability International, said McDonald’s is just trying to get ahead of impending regulations that will restrict the marketing of junk food to children and require restaurants to post nutrition information on menus.

“McDonald’s is taking steps in the right direction,” says Louaillier, whose group has pushed for McDonald’s to retire Ronald McDonald payday lenders. “But we should be careful in heaping praise on corporations for simply reducing the scope of the problem they continue to create.”

Cindy Goody, McDonald’s senior director of nutrition, said the new directives are “absolutely not” related to new regulations. Rather, she said, they’re a response to customers asking for healthier choices.

But apparently, customers aren’t making those choices in practice. Indeed, only about 11 percent of customers were ordering apples with their Happy Meals, even though 88 percent were aware they had the option, the restaurant said.

Jonathan Marek, a senior vice president at Applied Predictive Technologies, said the move should be good for public relations and, more importantly, could help drive sales.

“The key is, will this get parents to go to McDonald’s one more time each month than they would have otherwise?” he asked..

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July 25, 2011

More airlines raise fares to grab tax savings

Filed under: canada, marketing — Tags: , , , — Snowman @ 4:12 pm

The great tax holiday of 2011 for air travelers is just about over.

By Monday, most U.S. airlines had raised fares to reap the benefit of lower federal taxes on airline tickets. A few airlines that were passing the savings on to consumers changed their minds.

Several federal taxes on airline tickets expired over the weekend after Congress failed to pass legislation to keep the Federal Aviation Administration running at full speed.

Raising the fares allows the airlines to charge the consumer the same amount as before, while pocketing money previously collected for the government.

It could turn into a windfall for airlines if the stalemate in Congress drags on. The government estimates that the expiring taxes total $200 million a week. And with fuel prices much higher than last year, airlines can use the cash.

But some travel experts called the fare increases a public-relations mistake.

“One of the major airlines could have said, `Hey, at least for a week we’re going to give this money back to the consumers,’” said Rick Seaney, who tracks prices as CEO of FareCompare.com. “I’m surprised no one made promotional hay over this.”

Airlines collect various federal fees, including a 7.5 percent tax on all tickets that expired at midnight Friday night. Once the taxes expired, airlines began raising fares by an equal amount. On some tickets, the expired taxes can top 10 percent of the price.

A spokeswoman for the Air Transport Association, a trade group for major U.S. airlines, said consumers will benefit if the tax savings increase airline profits.

“This short-term additional revenue for airlines, which does not mean a fare increase for consumers, benefits all stakeholders _ customers, employees and investors _ by temporarily improving tiny industry margins to better cover costs and enable airlines to invest in their product and service,” the spokeswoman, Jean Medina, said in an email.

US Airways and American Airlines were the first to raise fares. They were joined quickly by United, Continental, Delta, Southwest, AirTran and JetBlue.

Virgin America, which at first bragged about passing the savings on to consumers, changed its mind by Monday. So did Frontier Airlines. Alaska Airlines, Spirit Airlines and Hawaiian Airlines said Monday they had not raised fares.

George Hobica, founder of travel website airfarewatchdog.com, said stores don’t raise prices during tax holidays, and neither should airlines.

“It seems predatory,” he said. “I realize the airlines have to make money, but this is kind of a cheap shot. It’s tone-deaf.”

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July 24, 2011

Tech earnings help stocks end week with solid gain

Filed under: online ads, term — Tags: , , , — Snowman @ 12:04 am

A big earnings miss from Caterpillar wasn’t enough to derail a rally that pushed the stock market up 2 percent for the week.

Caterpillar fell almost 6 percent Friday after its second-quarter results came in below analysts’ expectations. Technology stocks rose broadly following strong earnings from the chip maker Advanced Micro Devices and Microsoft.

The Dow Jones industrial average is closing with a loss of 43 points, or 0 payday loans lenders.3 percent, to 12,681. The Standard and Poor’s 500 index is up 1, or 0.1 percent, to 1,345. The Nasdaq is up 24, or 0.9 percent, at 2,589. Each index finished the week higher.

Rising and falling shares were about even on the New York Stock Exchange. Volume was lighter than average at 3.3 billion shares.

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July 12, 2011

Moody’s downgrades Ireland debt to junk status

Filed under: canada, technology — Tags: , , , — Snowman @ 6:04 pm

Moody’s Investors Service on Friday downgraded Ireland’s government debt ratings to junk status, saying it believes Ireland will need further rounds of financing when the current European Union and the International Monetary Fund support ends in 2013.

The ratings agency cut Ireland’s bond ratings to “Ba1″ from “Baa3,” and said the outlook on the ratings remains negative.

Moody’s credits Ireland with a strong commitment to fiscal consolidation, but notes that implementation risks remain significant with its weak economy.

The analysts say the EU may require private sector creditor participation as a precondition for such additional support, a negative for holders of distressed government debt.

Ireland’s short-term issuer rating also was lowered by one notch to “Non-prime” from “Prime-3.”

Source

July 2, 2011

US envoy: Iraq killings won’t sway troop decision

Filed under: business, online ads — Tags: , , , — Snowman @ 4:28 pm

The U.S. ambassador here says the Obama administration remains open to the idea of keeping thousands of American troops in Iraq next year, if asked, despite a spike of deathly attacks on soldiers by Shiite militias.

Ambassador James F. Jeffrey emphasized Saturday that no decision has been made by Washington. Baghdad’s Shiite-led government has not asked to extend the U.S. troop presence, though it is widely expected to do so.

Jeffrey says U.S. troops appear to be the militias’ top target now, but that attacks will continue against Iraqis if the American military leaves.

Fifteen U.S. soldiers died in Iraq in June, nearly all of them killed by Shiite militiamen. It was the bloodiest month for Americans troops in two years.

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June 27, 2011

Nike’s 4Q profit jumps 14 percent, shares soar

Filed under: marketing, online — Tags: , , , — Snowman @ 7:58 pm

Nike Inc.’s fourth-quarter net profit rose 14 percent to beat expectations as the company’s sales improved around the globe.

The world’s largest athletic shoe company reported Monday that it earned $594 million, or $1.24 per share, for the quarter. That’s up from the $522 million, or $1.06 per share, it earned in the same quarter last year.

Nike’s total revenue rose 14 percent to $5.77 billion

The results handily beat the $1.16 per share on revenue of $5.53 that analysts polled by FactSet were anticipating. The news sent shares of the company, based in Beaverton, Ore., soaring in after-hours trading.

Nike had warned investors that higher costs would cut into its profit margins. The company, like many of its peers, is dealing with higher costs for materials, labor and freight.

The company was able to make up for the rising costs with higher sales volume. Revenue improved in every market except Japan during the quarter.

“We delivered exceptional results in extraordinary times,” Mark Parker, Nike’s CEO said.

For the full year, Nike earned $2.13 billion, or $4.39per share, compared with $1.9 billion, or $3.86 per share, for the prior year.

Shares of Nike jumped $3.15, nearly 4 percent, to $81.62 in after-hours trading.

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June 26, 2011

Are ’smart grid’ electricity overhauls worth the money?

Filed under: economics, management — Tags: , , , — Snowman @ 4:46 am

In an effort to modernize the Illinois electric grid, state legislators approved a controversial bill last month to jump-start more than $3 billion of investment by the two largest utilities.

Led by Chicago-based ComEd, the utilities lobbied hard for the ’smart grid” measure, which would jolt the state’s electric distribution network into the 21st century and impose sweeping regulatory changes. Environmental groups have embraced the measure. Consumer advocates have condemned parts of it as a ploy to boost profit. Gov. Pat Quinn has vowed to veto it.

Regardless of how the drama plays out in Illinois, there’s no rush to follow suit on the other side of the Mississippi River. As with electric deregulation a decade ago, the Missouri utility industry would rather watch and wait. Regulators, utility executives and consumer advocates in Missouri see peril in rushing to spend billions of dollars on new technology that may not pay immediate dividends.

“Everybody agrees we’re using way-old technology and older infrastructure, and we have to move toward upgrading and updating our electrical grid,” said Missouri Public Service Commission Chairman Kevin Gunn. But “this is the perfect example where the Show-Me state motto is the right way to go.”

The term smart grid generally refers to technological upgrades designed to improve reliability and efficiency of the nation’s power grid. Most attention has focused on new digital meters, but other infrastructure aims to minimize outages, allow for increased use of renewable energy and allow consumers to buy cheaper power during off-peak hours.

“This is a major transformation of the power grid that’s going to take a numbers of years, it’s going to occur in stages, piece by piece,” said Peter Fox-Penner, a principal at the consulting firm Brattle Group.

national backlash

Across the country, smart grid projects, especially those involving new digital smart meters, have sparked a backlash. In Texas, regulators were asked to investigate the accuracy of the new meters. In San Francisco, customers are worried about electromagnetic radiation. A few California cities have declared moratoriums on the new meters. Privacy advocates worry about what utilities will do with the data they collect on consumer energy use.

All of this provided fodder for discussion last summer as the Missouri PSC held a smart grid workshop with representatives from utilities, the Energy Department and smart grid vendors. Regulators and utilities continue to closely watch demonstration projects in Fulton and Kansas City that are paid for partly with stimulus grants.

In Illinois, it’s the debate over the regulatory framework being proposed by utilities that’s raising second thoughts payday loans in one hour. David Kolata, executive director at Citizens Utility Board, a Chicago-based utility watchdog, said the group backs the bill’s smart grid provisions. What it objects to are more sweeping changes in the legislation that could expose consumers to higher rates.

“It’s increasingly clear that we’re not going to build our way out of future energy issues” by adding new power plants, he said. “But there cannot be a blank check” for utilities.

Whatever the cost, the benefits of a smart grid could be enormous. Some say it could do for the nation’s patchwork electric grid what the Interstate highway system did for car travel, and revolutionize energy use the way the Internet changed the flow of information.

Today’s grid is a giant one-way road where electricity is pushed from a few large generating plants to millions of customers. Utilities charge the same rate for every kilowatt-hour, even though electricity costs vary widely throughout the day. And consumers have little idea how much power they’re using, and so they have little incentive to use less at peak times when electricity prices are high.

The smart grid would make better use of intermittent power sources such as windmills and solar arrays. New meters could make it possible for utilities to charge different rates for electricity at different times of the day, so consumers can run the dishwasher or clothes drier at night to save money. And new smart thermostats and appliances would be able to automatically adjust power use in response to changing prices.

Such improvements would help utilities avoid building expensive new power plants that run only a few hours on hot summer afternoons to help meet peak demand. They would improve air quality and cut down greenhouse gas emissions.

barriers to entry

But getting from here to there won’t be easy or cheap. The Electric Power Research Institute estimates implementation of a nationwide smart grid will require investment of as much as $476 billion.

Advancing the smart grid also requires consumers to buy in. And it has been a tough sell so far. Earlier this month, Kansas City-based Black & Veatch released results of an industry survey showing the main impediment to smart grid implementation is a lack of customer interest and knowledge.

Much of the controversy has focused on the new digital meters. Some consumer advocates, like John Coffman, an attorney for the Consumers Council of Missouri and AARP, worry the devices will prove too expensive and need replacement too quickly. Coffman also worries it could make it too easy for utilities to disconnect customers who fall behind on bills.

For now, the new meters aren’t in Ameren Missouri’s plans. The cost of smart meters

June 20, 2011

Household Essentials acquires Cedar Fresh

Filed under: technology, term — Tags: , , , — Snowman @ 7:26 pm

Household Essentials, a Hazelwood-based distributor of ironing boards, hampers and other products for laundry and storage rooms, acquired Cedar Fresh, a cedar storage products manufacturer based in Miami.

Terms of the deal, which closed June 17, were not disclosed.  

Cedar Fresh was founded in 1984 and makes cedar drawer liners, hangars and blocks that are designed to protect clothes and linens from moths.   

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June 12, 2011

New firms join Canadian bid for Toronto exchange

Filed under: management, mortgage — Tags: , , , — Snowman @ 4:48 pm

Four new financial companies have joined a rival Canadian-only $C3.6 billion bid for the TMX Group that could block a proposed merger of the Toronto and London stock exchanges.

Maple Group Acquisition Corp. announced Sunday that Desjardins Financial Group, Dundee Capital Markets, GMP Capital Inc. and Manulife Financial have signed on as investors.

Manulife is Canada’s largest insurance company and Desjardins the biggest credit union, with major financial operations in Quebec. Dundee and GMP are smaller wealth managers.

Maple, made up of a who’s who of Canada’s major financial players _ including several major banks _ has put forward a US$3.67 billion bid to acquire TMX Group, which owns the Toronto exchange.

TMX rejected the bid, saying there are too many uncertainties, including regulatory and debt risks.

The bid from the London Stock Exchange is worth about US$3 billion.

The Maple bid is meant to keep TMX in Canadian hands after many bank and government officials raised concerns about the so-called “merger of equals” with the London Stock Exchange, which is technically a takeover by the British operator.

But TMX Group is intent on pushing ahead with the London Stock Exchange transaction and has publicly dismissed the threat that shareholders would accept the Maple proposal.

On Sunday, TMX declined to comment on the new Maple Group partners.

TMX’s rejection prompted Maple to go directly to shareholders with its offer. It hopes the addition of more big investors will send them a stronger signal.

A statement from Maple Group didn’t indicate if it would raise its bid, but spokesman Luc Bertrand says the additional investors are another indication that its offer is superior to the merger with the London exchange.

“Our vision for an integrated exchange provides a better way forward for Canada’s capital markets,” he said in the release.

Monique Leroux, Desjardins’ president and CEO, said the Maple bid for TMX “provides Canadians with an excellent opportunity to collaborate and cooperate in order to maintain a strong and growing financial industry that will enhance our economy both in Quebec and across Canada.”

Ned Goodman, chairman of Dundee Capital, said, “Canada’s small-and mid-cap companies and markets will do better with Maple than they will with the LSE. As an independent broker-dealer, we support Maple’s vision.”

Maple went directly to shareholders last month, announcing an informal C$48 (US$48.95) per share proposal -_ which represents a 24 percent premium to the implied value of the merger with the LSE Group.

Members of the Maple Group Acquisition Corp. include Alberta Investment Management Corp., Caisse de depot et placement du Quebec, Canada Pension Plan Investment Board, CIBC World Markets Inc., Fonds de solidarite des travailleurs du Quebec, National Bank Financial Inc., Ontario Teachers’ Pension Plan Board, Scotia Capital Inc. and TD Securities Inc.

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June 10, 2011

St. Louis casinos see business climb in May

Filed under: marketing, mortgage — Tags: , , , — Snowman @ 11:18 pm

Business at the region’s six casinos eeked up in May, with gaming revenue climbing 1.4 percent from the same month last year, to $96.4 million.

It’s the latest sign of stability, and slow growth, in the region’s gaming market, which hasn’t seen any new casinos open now in more than a year - since River City opened in early March 2010 in south St. Louis County. Year-over-year revenue has increased each of the three months since River City’s one year anniversary, a sign that the market is growing organically, not just through expansion.

Once again, River City powered much of the gains, boosting its revenue 29 percent from the same month last year. Harrah’s Casino in Maryland Heights grew 4.4 percent, inching out rival Ameristar Casino St. Charles as the region’s busiest property guaranteed high risk personal loans. Ameristar’s revenue was basically flat. Lumiere Place downtown saw revenue climb 3 percent, while both Illinois properties - the Casino Queen and Argosy Alton - lost ground relative to last year.

Through the first five months of the year, revenue is up 2.8 percent for the whole market. All data comes from Missouri and Illinois regulators.

 

Casino May rev. Change Ameristar $23.4 0.17% Argosy Alton $6.5 -5.51% Casino Queen $11.0 -3.70% Harrah’s $24.0 4.42% Lumiere Place $14.8 3.31% River City $16.7 28.87%

Market $96.4 1.35%

(dollar figures are in millions)

 

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