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Massachusetts gas prices drop 9 cents per gallon

Written By Unknown on Senin, 20 Oktober 2014 | 23.16

BOSTON — Massachusetts gas prices continued their downward spiral, dropping another 9 cents per gallon in the past week to an average of $3.17.

AAA Southern New England said Monday the cost of a gallon of self-serve, regular in the Bay State has now dropped 22 cents in the past month, prices are 21 cents lower than at the same time a year ago, and are at their lowest level since February 2011.

Yes despite the steep drop, Massachusetts prices are 7 cents above the national per-gallon average.

AAA found self-serve regular selling for as low as $2.89 per gallon and as high as $3.43.


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Justices won't revive Louisiana parish claims

WASHINGTON — The Supreme Court rejected an appeal Monday from 11 Louisiana parishes that wanted to revive their lawsuits over wildlife damage from the BP oil spill in the Gulf of Mexico in 2010.

The justices did not comment in leaving in place lower court rulings that dismissed the lawsuits against BP and other companies involved in the worst U.S. offshore oil spill. A rupture of BP's Macondo well and the explosion on the Deepwater Horizon drilling rig killed 11 workers.

BP says it has paid more than $27 billion to restore the coast and settle damage claims. It also faces a federal lawsuit under the Clean Water Act.

The lawsuits were filed by Plaquemines, Orleans, St. Bernard, Lafourche, Terrebonne, St. Charles, Jefferson, Iberia, St. Mary, St. Tammany and Cameron parishes.

The district attorneys for the parishes who were pursuing the lawsuits said the federal courts were wrong to ignore the Louisiana Wildlife Statute. The parishes said the law gives the state power to impose penalties for harm to wildlife from offshore oil spills beyond what is authorized under federal law.

The case is Louisiana v. BP Exploration and Production, 13-1424.


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Sears plans to raise more cash via rights offering

HOFFMAN ESTATES, Ill. — Sears is looking to raise more cash, announcing that it is planning a rights offering that may raise up to $625 million.

The company, which runs Kmart and its namesake stores, also said Monday that it struck a leasing deal with European fashion retailer Primark.

Its shares rose more than 8 percent in morning trading.

Sears has been cutting costs, reducing inventory and selling assets to return to profitability. Its biggest albatross remains its stores, which critics say are outdated and shabby.

Chairman and CEO Edward Lampert combined Sears and Kmart in 2005 about two years after he helped bring Kmart out from under bankruptcy protection. The company has since faced mounting pressure from nimbler rivals like Wal-Mart Stores and Home Depot.

Sears is also facing broader structural issues. Like other stores catering to the low- to middle-income customers, Sears is grappling with a slowly recovering economy that's not benefiting all Americans equally. It's also trying to catch up to customers who are steering clear of stores and shopping online.

Sears Holdings Corp. said the rights offering will allow its stockholders to buy up to $625 million senior unsecured notes due 2019 and warrants to buy shares of its common stock. It anticipates up to $625 million in proceeds if the offering is fully subscribed and closes as planned.

The proceeds will be used for general corporate purposes.

Sears' lease agreements with Primark are for seven stand-alone stores in malls. Sears will still have a significant presence at six of the locations. Primark will lease about 400,000 net square feet of retail space in the Northeastern U.S. and is expected to receive the space over the next 12 to 18 months.

Earlier this month Sears said it would sell most of its stake in its Canadian unit to raise as much as $380 million. The Hoffman Estates, Illinois, company also has a $500 million dividend tied to the spinoff of Lands' End, $165 million in proceeds from some real estate transactions and a $400 million short-term loan, which is helping to bolster its fiscal 2014 liquidity.

Shares of Sears climbed $2.30, or 8.1 percent, to $30.60 in morning trading. Its shares have fallen 41 percent since the beginning of the year through Friday's close.


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Cubist Pharma CEO Bonney will step down Dec. 31

NEW YORK — Antibiotic maker Cubist Pharmaceuticals said Monday that Michael Bonney will retire as CEO at the end of the year, and the company said it will promote President Robert Perez to take his place.

Bonney will retire as CEO on Dec. 31, and Perez will be promoted the next day. The company said Bonney will become non-executive chairman of its board of directors. Current Chairman Kenneth Bate will become Cubist's lead independent director.

Bonney has been the company's CEO since June 2003. Perez took over for Bonney as company president in 2012 and was Cubist's chief operating officer for five years before that.

Cubist Pharmaceuticals Inc. is based in Lexington, Massachusetts. Its primary product is Cubicin, which is used to treat infections of the skin and blood. Sales of Cubicin grew 3 percent to $234.7 million in the second quarter, and the drug brought in 79 percent of the company's total revenue.

Its shares rose 34 cents to $66.23 in morning trading Monday. Its shares have fallen 4 percent this year through Friday's close.


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Justices will decide privacy case on hotel records

WASHINGTON — The Supreme Court agreed Monday to referee a dispute over police access to hotels' guest information without first getting a search warrant.

The justices said they will hear an appeal by the city of Los Angeles of a lower court ruling that struck down an ordinance that requires hotel operators to open their guest registries at the demand of police.

The federal appeals court in San Francisco divided 7-4 in ruling that the ordinance violates the privacy rights of the hotels, but not their guests.

Courts in other parts of the country have upheld similar laws.

Cities argue that the ordinances help fight prostitution and illegal gambling, aid in the pursuit of fugitives and even could be a tool to track suspects following a terrorist attack. Los Angeles has said the ordinance makes prostitutes and drug dealers less likely to use hotels if they know that the facilities must collect information about guests and make them available to police on a moment's notice.

Judge Paul Watford wrote for the appeals court that the records are a hotel's private property and "the hotel has the right to exclude others from prying into the contents of its records."

In dissent, Judge Richard Clifton said that courts previously have ruled that hotel guests have no expectation of privacy in records of their names and room numbers. "A guest's information is even less personal to the hotel than it is to the guest," Clifton said.

The case is Los Angeles v. Patel, 13-1175.

In a second case from California, the justices said they will consider reinstating the conviction and death sentence in a 29-year-old triple murder in San Diego.

The state appealed a lower court ruling that overturned the conviction and sentence for Hector Ayala. The 9th U.S. Circuit Court of Appeals in San Francisco said Ayala was denied a fair trial because prosecutors excused all seven black and Hispanic jurors who might have served.

The jury convicted Ayala of killing three people during a drug robbery at a San Diego garage in 1985.

The case is Chappell v. Ayala, 13-1428.

The third appeal accepted Monday questions whether a convicted felon still can sell or transfer guns that he can no longer own because of his criminal conviction.

Tony Henderson, a former U.S. Border Patrol agent who pleaded guilty to distributing marijuana, voluntarily turned 19 guns over to federal authorities after he had been charged.

Henderson wanted to sell the weapons to a friend or transfer them to his wife because federal law prohibits people convicted of crimes from owning guns. But lower federal courts ruled against Henderson.

The case is Henderson v U.S., 13-1487.

All three cases will be argued during the winter.

___

Associated Press writer Sam Hananel contributed to this report.


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Toyota adds 247K vehicles to air bag recall tally

DETROIT — Toyota is recalling 247,000 vehicles in high-humidity areas as an air bag problem that has plagued most of the auto industry continues to widen.

The recall posed Monday by U.S. safety regulators covers the 2003 to 2005 Corolla and Matrix, the 2002 to 2005 Sequoia and the 2003 to 2005 Tundra. Also included is the 2003 to 2005 Pontiac Vibe made by Toyota.

Inflators can rupture in air bags manufactured by parts supplier Takata, causing metal fragments to fly out when bags are inflated in crashes. The problem has caused serious injuries. So far, automakers have recalled about 12 million vehicles worldwide because of the problem.

The recall covers vehicles in South Florida, along the Gulf Coast, in Puerto Rico, Hawaii, the U.S. Virgin Islands, Guam, Saipan and American Samoa.


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Canadian Pacific ends CSX deal talks

Canadian Pacific Railway has ended talks with U.S. counterpart CSX about a possible combination and plans no more discussions.

The railway operator did not say on Monday why it ended talks, but it did note in a brief statement that regulatory concerns appear to be a major deterrent for railroads considering combinations.

A CSX spokeswoman declined to comment on Canadian Pacific's statement.

Several reports had surfaced recently that CSX Corp. had rejected a merger offer from Canadian Pacific Railway Ltd. Both railroads declined to comment on the deal talk, but CSX CEO Michael Ward did say last week that the Surface Transportation Board, which regulates freight rail prices, would likely take a cautious approach to consolidation because there are only six Class I railroads in the U.S. and Canada.

Jacksonville, Florida-based CSX Corp. operates more than 21,000 miles of track in 23 Eastern states and two Canadian provinces. Other large railroads include Norfolk Southern, Union Pacific, BNSF and Canadian National.

Ward also said last week that past railroad mergers in the 1990s lead to poorer service after the deals as the companies worked to integrate the different railroads.

Canadian Pacific said Monday that it believed that regulatory approvals would be achievable for the right deal.

Railroad lobbyists have told Congress that the industry is struggling to keep up with a sharp increase in freight rail demand created in part by an oil fracking boom and two years of unusually bountiful harvests. Shippers have complained that widespread delays in freight rail shipments are hurting an array of industries.

Canadian Pacific said that a "pro-competition, customer-friendly" railway combination that also focuses on safety is a solution that could not be ignored on its merits by regulators. The railroad operator added that the industry's significant problems "will only worsen over time if solutions aren't put in place immediately."

CSX shares fell 2.9 percent, or 99 cents, to $32.87 in midday trading Monday while broader indexes were nearly flat. The stock had climbed about 18 percent so far this year, as of Friday's close, while the Standard & Poor's 500 index rose about 2 percent.

U.S.-traded shares of Canadian Pacific dropped $1.06 to $198.44.

___

AP Business Writer Josh Funk contributed to this report from Omaha, Nebraska.


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US stocks move higher; IBM disappoints

NEW YORK — U.S. stocks were mostly higher Monday following a turbulent week. The market's gains were partly held back by IBM, which slid after reporting results that missed investor expectations.

KEEPING SCORE: The Dow Jones industrial average lost 45 points, or 0.3 percent, to 16,335 as of 10:55 a.m. Eastern. The Standard & Poor's 500 index rose seven points, or 0.4 percent, to 1,894 and the Nasdaq composite was up 30 points, or 0.7 percent, to 4,288.

BIG BLUE'S RED DAY: IBM was the main reason the Dow was down Monday. IBM fell $12.90, or 7 percent, to $169.15 after the company reported earnings that missed Wall Street's expectations. The company also missed on revenue and warned that it may not meet its profit goals for the foreseeable future.

RELATIVE CALM: The quiet trading on Wall Street came after a wild ride last week, when the Dow moved between triple-digit losses and triple-digit gains. Investors remain concerned that economic weakness in Europe could spread to the U.S.

BUSY WEEK: This is one of the busiest weeks for company earnings. A total of 130 companies in the S&P 500 index will report quarterly results this week, including big names like American Express, Cola-Cola and AT&T. Consumer products giant Apple will report its results after the bell Monday.

ENERGY: One symptom of the concerns over the global economy has been the sharp fall in oil prices over recent weeks. U.S. benchmark crude fell $1.15 to $80.91 a barrel in New York. Brent crude fell $1.56 to $84.62 a barrel.

JAPANESE RALLY: Japan's Nikkei had its biggest rally of the year Monday, rising 4 percent. The rally comes after a report that the Government Pension Fund will increase its holdings of Japanese stocks to 25 percent from 12 percent. South Korea's Kospi was up 1.6 percent at 1,930.06 and Hong Kong's Hang Seng added 0.2 percent to 23,070.26.

BONDS: U.S. government bond prices didn't move much. The yield of the 10-year Treasury note held steady at 2.19 percent.


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IBM to pay $1.5B to shed its costly chip division

NEW YORK — IBM will pay $1.5 billion to Globalfoundries in order to shed its costly chip division.

IBM Director of Research John E. Kelly III said in an interview Monday that handing over control of the semiconductor operations will allow it to grow faster, while IBM continues to invest in and expand its chip research.

IBM will make payments to the chipmaker over three years, but it took a $4.7 billion charge for the third quarter when it reported earnings Monday.

The company fell short of Wall Street profit expectations and revenue slid 4 percent, sending shares down 8 percent before the opening bell.

The tech sector is under heavy pressure in early trading, with IBM, Microsoft Corp., Intel Corp. and Cisco all moving lower.

Privately held Globalfoundries will get IBM's global commercial semiconductor technology business, including intellectual property and technologies related to IBM Microelectronics. It also gets IBM's semiconductor manufacturing operations and plants in East Fishkill, New York and Essex Junction, Vermont, as well as access to thousands of patents and IBM's commercial microelectronics business.

Globalfoundries said that it plans to employ substantially all IBM workers at the East Fishkill and Essex Junction plants, except for a team of semiconductor server group employees who will stay with IBM.

Under the agreement, Globalfoundries will become IBM's exclusive server processor semiconductor technology provider for 22 nanometer (nm), 14nm and 10nm semiconductors for the next 10 years. Globalfoundries was spun off from Advanced Micro Devices in 2009 to handle chip production.

IBM said handing over the chip division will allow it to concentrate on fundamental semiconductor research and the development of future cloud, mobile, big data analytics, and secure transaction-optimized systems.

The transaction is expected to close next year.

On Monday, IBM reported that its adjusted earnings from continuing operations were $3.68 per share, while revenue totaled $22.4 billion. The performance missed the expectations of analysts polled by FactSet, who predicted earnings of $4.32 per share on revenue of $23.39 billion.

Shares of International Business Machines Corp., based in Armonk, fell $14.35 to $167.70 in premarket trading.


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China's growth likely to slow, research group says

NEW YORK — China's economic growth will decelerate to 4 percent a year between 2020 to 2025 — well below widespread expectations of steady 7 percent to 8 percent growth over the next decade, a business research group predicted.

The Conference Board forecast Monday that China will endure a rockier-than-expected transition from fast growth based on exports and massive investment in factories and real estate to a slower but steadier economy based on increased spending by Chinese consumers.

"This adjustment process will necessarily be painful," the report warned. "The full transition of China's economic growth model is likely to be a long slog."

Chinese officials have acknowledged that the transition will require tough choices, such as reducing government loans to inefficient but politically connected companies. But they have been slow to act, the Conference Board said. "China's leaders have forestalled needed structural adjustments" by rolling out stimulus measures whenever the economy starts to sputter, the report said.

The government is aiming for growth of 7.5 percent this year, well below peak growth of 14 percent in 2007.

The Conference Board said that U.S. and other foreign companies can benefit in some ways from more moderate growth in China. It will be easier to attract skilled Chinese workers, who will increasingly value steady employment instead of jumping from company to company in search of higher pay as they could in the boom years. It will give foreign companies opportunities to buy struggling Chinese firms. And the report also predicted that it means the Chinese government — which has been investigating foreign companies for allegedly anti-competitive practices — will be "more hospitable" to foreign companies that want to invest in China.


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