Chinese industrial upswing helps markets

LONDON — News that manufacturing activity in China grew for the first time in 13 months helped offset disappointment over weaker U.S. figures, nudging global stocks higher on Monday.

HSBC's Purchasing Managers' Index for China rose to 50.5 in November from October's 49.5 on a 100-point scale on which numbers above 50 indicate activity is expanding. The index measures overall manufacturing activity by surveying numerous indicators including orders, employment and actual production.

Because Chinese manufacturing is closely linked with the state of the world economy, the increase buoyed market sentiment in the early part of the day.

But the equivalent report for the U.S., the ISM survey, showed manufacturing in the American economy, the world's largest, sliding to its lowest level since July 2009. The negative impact of that news was limited by more upbeat statistics showing U.S. builders increased their spending on construction projects in October by the largest amount in five months, led by a surge in housing.

After weighing the data, investors held onto the modest gains they made in early trading.

By midafternoon in Europe, Britain's FTSE 100 was up 0.2 percent to 5,875.82 while Germany's DAX added 0.9 percent to 7,472.46. France's CAC-40 advanced 0.7 percent to 3,581.34.

Wall Street made modest gains on the open, with the Dow up 0.1 percent to 13,038.48 and the S&P 500 adding 0.2 percent to 1,419.46.

In Europe, Greece was outlining the details of a plan for the country to lower its debt burden by purchasing its bonds back from private-sector investors at lower prices. The details will be presented to the finance ministers of the 17 European Union countries that use the euro at their meeting in Brussels on Monday.

Besides ironing out the remaining details on Greece's debt relief program, the ministers are also likely to discuss a bailout for Cyprus. No final decision on the bailout is expected Monday, however as its size depends on an experts' report that has not yet been completed.

Meanwhile, investors will also keep monitoring progress of U.S. budget negotiations. Lawmakers need to reach an agreement to avoid the so-called fiscal cliff — a package of tax increases and government spending cuts that will automatically take effect in 2013 unless lawmakers take action.

Economists have warned that the package's high cost could throw the U.S. back into recession.

Earlier, Asian stocks performed with less conviction than their European counterparts.

Japan's Nikkei 225 index rose 0.1 percent to close at 9,458.18 while South Korea's Kospi gained 0.4 percent to 1,940.02. Australia's S&P/ASX 200 added 0.6 percent to 4,531.50.

But Hong Kong's Hang Seng shed morning gains to tumble 1.2 percent at 21,767.85.

And investors continued to abandon mainland Chinese stocks despite the more upbeat manufacturing survey. The Shanghai Composite Index fell 1 percent to 1,959.77. The smaller Shenzhen Composite Index slid 2.5 percent to 734.28.

Analysts said this was likely due to the fact that more upbeat indicators may reduce the Chinese government's willingness to provide new stimulus to the economy. While the Chinese manufacturing survey was a positive signal for global demand, it lowered the chances of easier credit for Chinese companies.

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Iron Mountain names William Meaney as new CEO

Boston-based information storage and management company Iron Mountain Inc. said today it has appointed William Meaney as its new president and chief executive officer and a member of the board of directors, effective Jan. 7.

Meaney, 52, succeeds longtime executive chairman and CEO Richard Reese, who announced his retirement after 31 years at the company. Reese served as CEO of the company from December 1981 to June 2008 and returned as CEO in April 2011, the company said.

Most recently, Meaney served as CEO of the Hong Kong-based Zuellig Group, a $12 billion, primarily business-to-business conglomerate that saw sales triple during his eight-year tenure from 2004 to 2012, the company said.

Meaney previously served as the chief commercial officer and managing director of Swiss International Airlines from December 2002 to January 2004, and executive vice president of South African Airways from 1998 to 2001.

A current board member of Qantas Airways Ltd., Meaney is also a trustee of both Rensselaer Polytechnic Institute and Carnegie Mellon University, where he earned his bachelor's degree in mechanical engineering and a master's degree in industrial administration, respectively.

Al Verrecchia, Iron Mountain's lead independent director, will succeed Reese as chairman of the board of directors effective in March 2013, when Reese will also retire from the board, the company said.

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Ulta Beauty to open in Patriot Place

Beauty and cosmetics retailer Ulta Beauty plans to open a store at Patriot Place in the summer of next year, mall officials said today.

The 10,000-square-foot beauty store in Patriot Place's South Marketplace will be Ulta Beauty's eighth Bay State location, and will offer more than 20,000 cosmetic, fragrance, hair care, skincare, bath and body and salon styling products.

The store will also include a full-service beauty salon, officials said.

"Ulta Beauty will be a great addition to Patriot Place," said the mall's General Manager Brian Earley. "It will complement Trader Joe's, Christmas Tree Shops and Off Broadway in the South Marketplace as well as the fashion and accessories offerings in the North Marketplace, further rounding out our retail mix and making Patriot Place even more attractive for destination shopping."

As of the end of October, Ulta Beauty operates 537 retail stores across 45 states and also distributes its products through the company's website.

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Cuba reports 3.1 percent economic growth for 2012

HAVANA — Cuba says it will finish the year with 3.1 percent economic growth, lower than expected but higher than in 2011.

Authorities had previously projected growth of 3.4 percent.

Cuba's economy expanded 2.7 percent last year. That also fell short of the 3 percent predicted.

Economy Minister Adel Yzquierdo told a meeting of the Council of Ministers that this year's shortfall is primarily due to missed targets in the construction sector.

He forecast growth of 3.7 percent for 2013.

Yzquierdo's comments were reported Monday in the Communist Party newspaper Granma.

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LeBron James chosen as SI's Sportsman of the Year

MIAMI - When LeBron James learned he was Sports Illustrated's Sportsman of the Year, the Miami Heat star was surprised.

Not because he thought his achievements in 2012 weren't worthy, but because he figured what happened in 2010 was still holding him back.

Apparently, that's no longer the case. The magazine announced its annual choice Monday, with James becoming the first NBA player to win the award since Heat teammate Dwyane Wade in 2006.

"I remember just like yesterday when I signed here and basically, like the roof caved in," James told The Associated Press, referring to the fallout from his infamous "Decision" to leave Cleveland for Miami in 2010. "To see that I and my team and everyone around me was able to patch that roof up, to come to this point, to come to this point and receive such a prestigious award, it's huge."

Past winners include Muhammad Ali, Jack Nicklaus, Wayne Gretzky, Arthur Ashe, Tom Brady [stats], Derek Jeter and Michael Phelps. College basketball coaches Mike Krzyzewski - James' Olympic coach - and Pat Summitt shared the honor last year.

Time Inc. Sports Group editor Paul Fichtenbaum said one thing separating James this year was that when Miami needed him most "he came up the biggest." In particular, Game 4 of the second-round series at Indiana and Game 6 of the Eastern Conference finals at Boston.

"LeBron kind of made it easy on us," Fichtenbaum said. "In a year that had really high standards, he just stood taller than everybody else."

James won essentially all he could win in 2012: He became an NBA champion for the first time, won the NBA Finals MVP trophy, helped the U.S. win Olympic gold for the second time and picked up his third NBA MVP award.

Fichtenbaum said James was the choice not only for his play but also because of his charitable work, especially involving schoolchildren in his native Akron, Ohio.

"I do think there has been some sort of closure - maybe not entirely in Cleveland, but across the nation," Fichtenbaum said. "LeBron's jerseys are now the No. 1-selling jerseys. I think there's a reason for that. I think people really appreciate him for everything he can do."

This is the 18th time James will be on SI's cover, the magazine said. His first time was as a high school junior in February 2002, when the magazine famously dubbed him "The Chosen One" and touted how he would have been an NBA lottery pick even then.

The first 17 covers were different: Only this one has James wearing an NBA championship ring.

James said the sportsman honor was humbling considering this was year in which Usain Bolt, Michael Phelps, Gabby Douglas and Missy Franklin starred at the London Olympics, Miguel Cabrera became baseball's first Triple Crown winner in 45 years and Roger Federer captured Wimbledon for the seventh time.

"Do I need it? I don't need it," James said. "I don't ever look for individual accolades. I do what I do because I love it and I want to continue to get better at it."

The Dec. 10 issue of SI is out Wednesday, the same day James will be honored at the magazine's Sportsman of the Year awards gala in New York.

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US builders boost spending 1.4 percent in October

WASHINGTON — U.S. builders increased their spending on construction projects in October by the largest amount in five months, led by a surge in housing.

The Commerce Department said Monday that construction spending rose 1.4 percent in October. It was the largest gain since a 1.7 percent increase in May.

The increase increased construction spending to a seasonally adjusted annual rate of $872.1 billion. That is nearly 17 percent higher than a 12-year low hit in February 2011.

Still, even with the gain, the level of spending remains only about half of what's considered healthy.

Housing construction jumped 3 percent in October. Nonresidential construction rose 0.3 percent. The government said Superstorm Sandy, which hit in late October, had only a minimal impact on the figures.

The government said earlier this month that sales of new homes fell slightly in October, dragged lower by steep declines in the Northeast partly related to Superstorm Sandy. New-home sales were still 17 percent higher in October than the same month a year ago.

Strength in home building has been one of the bright spots for the economy this year. But overall construction is still being offset by weakness in commercial real estate and tight state and local government budgets.

From July through September, residential construction grew at an annual rate of 14.2 percent. Housing construction is on track to contribute to economic growth this year — the first time that's happened in the five years since the housing bubble burst.

Though new homes represent only a fraction of the housing market, they have an out-size impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to statistics from the National Association of Home Builders.

Builders are increasingly confident that the housing recovery will endure. A measure of their confidence rose in November to the highest level in 6½ years. And builders broke ground on new homes and apartments in October at the fastest pace in more than four years.

But there are factors dragging on the housing recovery. Many Americans, particularly first-time homebuyers, are unable to qualify for a mortgage. And many can't afford larger down payments that are being required by banks.

While housing has strengthened this year, the broader economy has lagged behind. The government reported last week that overall economic growth increase to an annual rate of 2.7 percent in the July-September quarter, up from 1.3 percent in the April-June quarter.

But through the first nine months of this year, economic growth has averaged just 2 percent, far below what is needed to make a significant dent in unemployment.

Many analysts believe growth is slowing in the current October-December quarter to below 2 percent. The disruptions caused by Superstorm Sandy weighed on consumer spending in October.

And many consumers and businesses may also be worried about automatic tax increases and spending cuts that are scheduled to kick in next year, if Congress and the Obama administration fail to reach a deal before then to avert them.

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Stocks turn mixed as US manufacturing contracts

NEW YORK — Stocks turned mixed on Wall Street Monday morning following an unexpected contraction in U.S. manufacturing last month.

The Dow Jones industrial average rose 6 points to 13,032 as of 10:08 a.m. Eastern. The Standard and Poor's 500 was up 3 points to 1,418. The Nasdaq composite was up 8 points to 3,018. The Dow had been up as much as 62 points shortly after the opening bell.

U.S. manufacturing declined in November, a report from The Institute for Supply Management showed Monday. The ISM's index fell to 49.5 from 51.7 a month earlier. Any number below 50 on the scale means that manufacturing is contracting.

Investors are also looking for developments in budget talks. The White House and Congress are seeking to hammer out a deal that will avoid the "fiscal cliff," a series of sharp government spending cuts and tax increases scheduled to start Jan. 1 unless an agreement is reached to cut the budget deficit. Stocks have fluctuated since the election on news of the talks.

In Europe, markets rose after Greece revealed plans to spend as much as €10 billion ($13 billion) in a bond buyback program intended to stabilize its mountainous debt. The buyback is part of efforts to reform Greece's moribund economy and reduce its debt to sustainable levels.

The yield on the 10-year Treasury note rose 4 basis points to 1.65 percent.

Other stocks making big moves:

—Dell rose 76 cents to $10.41 percent after Goldman Sachs raised its rating to "Buy" from "Sell." Goldman cited Dell's healthy cash balance and said a recent decline in the stock may have been overdone. Dell has slumped almost 30 percent this year on concern that consumers are migrating away from desktop PCs and laptops to portable devices such as tablets and phones.

—Supervalu jumped 19 cents to $2.56 following a report that private equity firm Cerberus is considering multiple options for buying parts of the struggling grocery store chain.

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US manufacturing shrinks in November to 3-year low

WASHINGTON — A survey shows U.S. manufacturing shrank in November to its weakest level since July 2009. The impact of Superstorm Sandy and worries about automatic tax increases that could take effect in January combined to reduce factory orders and manufacturing jobs.

The Institute for Supply Management says its index of manufacturing conditions fell to a reading of 49.5. That's down from 51.7 in October.

A reading above 50 signals expansion, while readings below 50 point to contraction. The second contracted after two months of growth.

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Mass. gas prices drop another 2 cents

BOSTON — Gas prices in Massachusetts have eased down another two cents in the past week.

AAA Southern New England reports Monday that the average price of a gallon of self-serve, regular has dropped to $3.54.

Even though prices in Massachusetts are 11 cents lower per gallon than a month ago, they remain 16 cents above the national average and 26 higher than at the same time last year.

AAA found self-serve, regular selling as low as $3.42 per gallon and as high as $3.79 per gallon.

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Lincoln brand changes name as new MKZ goes on sale

DETROIT — After years of dismal sales, Ford's Lincoln luxury brand is reintroducing itself with a new name and a new midsize sedan.

The brand will now be known as the Lincoln Motor Co., a change intended to separate Lincoln from the cheaper Ford brand and give it a more exclusive feel. It's also meant to recall Lincoln's storied past, when sedans like the Continental and Town Car were the pinnacle of luxury and good design. Lincoln was known as the Lincoln Motor Co. until 1922, when founder Henry Leland sold the brand to Ford.

The company is making the change as it launches the new MKZ sedan, which will arrive at dealerships this month. It starts at $35,925, or about the same as its archrival, the Lexus ES 350. The MKZ is the first of seven new or revamped Lincolns that will go on sale by 2015.

The new sedan is longer and wider than the one it's replacing, giving it a more luxurious look. It has a push-button transmission instead of a shifter and an optional panoramic glass roof. It still has Lincoln's split-wing grille, a tribute to the 1938 Lincoln Zephyr and one of the brand's most recognizable features. But designers made it thinner and more tapered after complaints about the ungainly maw on the most recent Lincolns.

Lincoln was the top-selling luxury brand in the U.S. two decades ago. But then Ford bought up other luxury brands, like Jaguar and Volvo, and started ignoring Lincoln. Its lackluster products couldn't compete in the hotly contested luxury market. Ford has sold just over 69,000 Lincolns in the U.S. so far this year. BMW has sold more than four times that number.

Ford has since sold its other luxury brands and says it's now committed to revamping Lincoln. First up: A Monday event at New York's Lincoln Center, where Ford CEO Alan Mulally will show off the new MKZ. Ford is also stepping up advertising for the brand and will show a commercial during the Super Bowl.

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