ATHENS, Greece (AP) — Crucial austerity talks set for late Monday between Greece’s coalition party leaders are due to be pushed back for a day, the Prime Minister’s office said, despite strong pressure from the European Union for a speedy agreement so that the country can avoid a default on its debt.

A spokeswoman for the Prime Minister’s office told the AP the delay is to allow completion of separate talks between Prime Minister Lucas Papademos and representatives of Greece’s bailout creditors Monday.

Leaders of the three parties in Papademos’ coalition publicly oppose steep cuts in private sector pay demanded by the eurozone and International Monetary Fund, but their backing is needed for the government to reach a deal for a euro130 billion ($170 billion) bailout.

The euro130 billion ($171 billion) bailout deal is vital for Greece to avoid bankruptcy next month as it cannot cover a euro14.5 billion ($19.1 billion) bond repayment due March 20 without the rescue funds.

The Prime Minister’s spokeswoman spoke on customary condition of anonymity.

Earlier Monday, European Commission spokesman Amadeu Altafaj Tardio said Greece is already “beyond the deadline” to end the talks and should reach conclusions “around now.”

Debt-ridden Greece has been kept solvent since May 2010 by payments from a euro110 billion ($145 billion) international rescue loan package. When it became clear the money would not be enough, a second bailout was decided last October.

Its implementation depends on the austerity measures but also on separate talks with banks and other private bondholders to forgive euro100 billion ($131.6 billion) in Greek debt, in exchange for a cash payment and new bonds worth 50 per cent less than the original face value, longer repayment terms and a cut in the interest rate to be paid on the bonds. Those close to the negotiations expect private investors to take an overall cut of up to 70 percent on the value of their bonds.

Over the weekend, Greek officials held a conference call with eurozone finance ministers, as well as more talks in Athens with EU-IMF debt inspectors, senior bank negotiators, and Greek political party leaders, to try and hammer out a deal on the new cutbacks.

Greeks have already been subjected to a spate of austerity measures in return for the rescue loans, suffering significant cuts in pensions and salaries coupled with repeated tax hikes and an increase in retirement ages.

Greek coalition partners talks postponed for a day is an Article from: Fox Rio 2 News RGV

NEW YORK (AP) — U.S. stocks are opening sharply higher after the unemployment rate dropped to the lowest in two years.

Before the market opened Friday, the Labor Department said companies hired 243,000 employees in January, the strongest job growth in nine months. The increase in hiring pushed the unemployment rate down to 8.3 percent.

The S&P 500 index added 11 points, or 0.9 percent, to 1,337. The S&P 500 is on track to rise for the fifth straight week, the longest weekly winning streak since January of 2011.

The Dow Jones industrial average jumped 108 points, or 0.8 percent, to 12,812.

The Nasdaq rose 27 points to 2,887.

The U.S. jobs figures helped stocks and the euro to rally on Friday despite further evidence that the 17-country eurozone is heading for recession.

Stocks jump after strong jobs report is an Article from: Fox Rio 2 News RGV

WASHINGTON (AP) — The number of people seeking unemployment benefits fell last week to a level that signaled a steadily improving job market. The figures came one day before the government is expected to report that January marked another solid month for hiring.

Unemployment applications fell 12,000 to a seasonally adjusted 367,000, the Labor Department said Thursday. The four-week average, a less volatile measure, dropped for the third straight week to 375,750.

That’s the second-lowest level for the four-week average since June 2008. When applications stay consistently below 375,000, it usually signals that hiring is strong enough to lower the unemployment rate.

Economists expect the January employment report to show that employers added 155,000 jobs last month and that unemployment remained at 8.5 percent. In December, employers added 200,000 jobs.

The job market “still appears to be slowly moving in the right direction,” said Jim Baird, chief investment strategist at Plante Moran Financial Advisors.

In a separate report, the government said workers were more productive in the final three months of last year. The growth in productivity, though, slowed from the previous quarter. Weaker productivity growth can help boost hiring if economic growth picks up.

Applications for unemployment benefits have steadily declined since fall as economic growth has picked up and employers have cut fewer jobs. The four-week average has fallen 7 percent since last October and 13 percent in the past year.

The nation will gain about 160,000 jobs a month this year, according to a survey of economists by the Associated Press. That’s up from an average of about 135,000 last year.

Still, the job market has a long way to go before it fully recovers from the damage of the Great Recession, which wiped out 8.7 million jobs. More than 13 million people remain unemployed. Millions more have given up looking for work; they’re no longer counted as unemployed.

Nearly 7.7 million Americans received unemployment benefits in the week ending Jan. 14, the latest period for which figures are available. That’s unchanged from the previous week.

The economy’s growth rate rose in the final three months of last year, to a 2.8 percent annual rate. That was faster than the 1.8 percent pace in the July-September quarter.

But a key reason for the growth was that companies restocked their supplies at a robust pace. Restocking is likely to slow in the first three months of this year, which would lead to weaker growth.

Until consumer spending picks up, businesses may be forced to cut back on hiring. But consumers have been weighed down by wages that haven’t kept pace with inflation. More jobs and higher pay would invigorate consumer spending.

Most economists expected the combination of weaker inventory growth and tepid consumer spending to lead to slower growth in the current January-March quarter. Many are predicting 2 percent annualized growth this quarter.

Fewer seek unemployment aid as job market improves is an Article from: Fox Rio 2 News RGV

NEW YORK (AP) — Retailers reported mixed sales results for January in a sign that American shoppers are continuing to be cautious about when and where they spend their money in the shaky economy.

Of the 12 merchants reporting monthly sales this week, the number of those who beat estimates and those who missed expectations was about even, according to a Thursday morning tally by Thomson Reuters.

Costco and Target were among those reporting sales gains that were above Wall Street expectations, while Macy’s and Dillard’s posted figures that were below analysts’ estimates.

“It was as tough month as retailers battled holiday hangover, lack of incentive to shop and mild winter that killed outerwear clearance,” said Ken Perkins, president of RetailMetrics Inc., a research firm.

January typically is when shoppers are lured into stores by the big discounts retailers offer on winter clothes and shoes so they can make room for spring merchandise. But this January, consumer confidence fell over renewed worries about the economy after surging during the holiday shopping season. Also, the unseasonably warm weather made markdowns on down coats and furry boats unappealing to shoppers.

As a result, many clothing chains posted sales at stores open at least a year – an indicator of a retailer’s health – that were lackluster. Stores that offer more of a variety in merchandise seemed to fare better.

The Bon-Ton Stores Inc. reported a 3.5 percent decrease in revenue at stores opened at least a year. Tony Buccina, Vice Chairman, president of merchandising, blamed the poor performance to a mild winter.

“January sales were below expectations due to the continuation of the milder weather in our markets, which had an adverse impact on sales of cold-weather merchandise and comprised the majority of our sales shortfall,” he said.

Department-store chains Dillard’s also had disappointing results. The retailer’s sales were unchanged for January compared with a year ago. Analysts had expected a 2.0 percent gain. It competitor Macy’s had a 2.4 percent increase, which was below the 3.5 percent increase that analysts had expected.

However, Macy’s raised its guidance for the fourth quarter – which did not include January – and for the full year. The company said it has benefited from a move to tailor its merchandise to local markets.

“The fourth quarter was our strongest in many years, and demonstrated the continued progress in improving the fundamentals in our business at Macy’s and Bloomingdale’s,” said Terry J. Lundgren, chairman, president and chief executive officer of Macy’s.

Meanwhile, Costco continued its winning streak, reporting Thursday that revenue at stores open at least a year climbed 8 percent in January, helped by higher gas prices. Results topped expectations. Analysts polled by Thomson Reuters had predicted a 6.1 percent increase.

Target Corp. says its revenue at stores open at least a year rose 4.3 percent in January. The discount chain says sales were strong throughout the month across the U.S. Analysts surveyed by Thomson Reuters expected a smaller 2.1 percent increase.

The company said in a recording that some of its strongest performers were shoes, health care products and boys’ and girls’ clothing. Some of the weaker categories included electronics and books.

Retailers post mixed sales results for January is an Article from: Fox Rio 2 News RGV

BRUSSELS (AP) — European Union nations must increasingly pool their military resources, especially as individual members keep trimming their budgets and the U.S reshapes its military strategy to focus on regions beyond Europe, the bloc’s top defense officials said Tuesday.

“We want to tackle the challenges we face by doing more together and doing it better, by looking for greater efficiencies and value for money (and) by pooling and sharing of military capabilities,” EU foreign policy chief Catherine Ashton said.

“This is the only pragmatic way forward given the growing demand for the European Union to become a more capable, coherent and strategic global actor,” said Ashton, who is also responsible for the bloc’s security policy.

The EU’s 27 governments spend euro200 billion ($265 billion) on defense annually – more than any other nation except the United States. But military spending has already shrunk 15 percent in the past decade and is set to plunge further as part of the austerity measures implemented by many European governments to cope with the continent’s debt crisis.

Making matters worse for European armies, the fragmentation of national military commands and defense industries has made it almost impossible to achieve economies of scale in purchasing military equipment. As a result, forces from EU nations which have operated in the Middle East, Asia and Africa in the past decade have relied heavily on the United States for logistical, intelligence and other support.

European nations taking part in last year’s NATO-led bombing of Libya ran out of smart munitions just weeks into the seven-month operation. Their air forces also had to call on the U.S. military for air transport, air-to-air refueling and targeting intelligence.

Complicating matters further for Europe’s defense planners, earlier this month the Obama administration announced a new military strategy that includes a shift away from the Cold War-era focus on Europe.

Instead, U.S. military capabilities will in the future concentrate on Asian security risks such as China and North Korea, and build on partnerships in the Middle East to keep an eye on Iran. As a result, the Pentagon will withdraw two of America’s four combat brigades still based in Europe.

“President Obama has announced sharp cuts and shift of focus to Middle East and Asia … so now the tempo of European cooperation has to accelerate,” said Claude-France Arnould, who heads the EU’s defense agency.

She said support functions such as the joint maintenance of aircraft and training of air crews can deliver quick savings.

The European Defense Agency also is working on a number of programs to address deficiencies identified during the war in Libya, including improving the performance of air tanker fleets, standardizing the procurement of smart munitions, and developing common intelligence and reconnaissance capabilities.

EU: Members must share more military resources is an Article from: Fox Rio 2 News RGV

PHILADELPHIA (AP) — The Pep Boys – Manny, Moe & Jack, an auto parts chain founded more than 90 years ago, has agreed to be taken private by the investment firm The Gores Group for about $791 million.

The $15 per share offer is a 24 percent premium to Pep Boys’ closing price Friday of $12.08.

The company’s shares surged $3.08, or 25.5 percent, to $15.16 in premarket trading Monday.

Pep Boys, which is based in Philadelphia, has more than 700 locations in 35 states and Puerto Rico.

The proposed acquisition appealed to The Gores Group in part because of Pep Boys brand recognition, as well as its moderate pricing.

“Pep Boys’ strong brand awareness and management’s strategy to be the automotive solutions provider of choice for the value-oriented customer positions Pep Boys for growth. We are excited to help Pep Boys build on this vision and enable the company to take the brand and business to the next level by effectively scaling its powerful differentiated service platform,” Lee Bird, managing director of operations and consumer practice leader at The Gores Group, said in a statement.

Last month Pep Boys reported that its fiscal third-quarter net income rose nearly 23 percent on stronger tire sales and improving service sales. At the time President and CEO Mike Odell said that the improved business was due in part to new marketing, lower gas prices and pent-up demand.

With almost 53 million shares outstanding, the deal is worth about $791 million. The companies put the total enterprise value of the deal at approximately $1 billion.

The agreement includes a provision, which allows Pep Boys to seek and receive alternative offers for a period of 45 days.

Gores Group said that it has fully committed financing for the buyout. The deal is not subject to a financing condition.

Pep Boys said that Odell, as well as other senior managers, are expected to remain in their positions once the acquisitions closes.

Pep Boys’ board unanimously approved the buyout, which still needs approval from the company’s shareholders. Pep Boys said it has suspended its quarterly dividend in anticipation of the deal.

The transaction is expected to close in the fiscal second quarter. Once the acquisition is complete, Pep Boys stock will no longer trade on the New York Stock Exchange.

Pep Boys agrees to be acquired for about $791M is an Article from: Fox Rio 2 News RGV

LOS ANGELES (AP) — Facebook could file regulatory papers as early as Wednesday for its highly anticipated initial public offering of stock, according to a newspaper report.

Facebook’s expected launch as a publicly traded company is the most hotly anticipated tech IPO in more than a decade. It would vault it into the top ranks of the largest public companies in the world, on par with the likes of McDonald’s Corp., Amazon.com Inc., Visa Inc. and Bank of America Corp.

The Wall Street Journal, citing unnamed people familiar with the matter, said Friday that the social-networking company could raise as much as $10 billion in an offering that would value the company at $75 billion to $100 billion.

Either measure would dwarf the $1.67 billion raised in Google’s 2004 IPO. That offering gave Google a market value of $23 billion. Google is now worth $184 billion.

CEO and founder Mark Zuckerberg, 27, is already considered a billionaire because of shares traded on a closed market.

Facebook spokesman Larry Wu said the company will not comment on IPO-related speculation.

After filing its initial paperwork, a public offering usually takes three to four months.

Facebook IPO filing could come next week is an Article from: Fox Rio 2 News RGV

DEARBORN, Mich. (AP) — An accounting change boosted Ford’s fourth-quarter net income, but without the gain the company fell short of Wall Street’s expectations.

Weak sales in Europe and lower production in Thailand eroded Ford’s profits.

Investors punished the stock in pre-market trading, where shares fell nearly 5 percent to $12.14.

Ford earned $13.6 billion in the fourth quarter, due to a decision to move deferred tax assets back onto its books. Without that change, the company’s pre-tax operating profit totaled $1.1 billion, or 20 cents per share, missing analysts’ forecasts of 25 cents.

The company lost money in Europe and Asia in the fourth quarter. But its North American operating profit rose 33 percent to $889 million.

“The quarter was really driven by North America,” Chief Financial Officer Lewis Booth said.

Booth also said November flooding in Thailand, which affected its parts suppliers, had a greater impact than the company expected. Ford lost 34,000 units of production in Thailand and in South Africa, which relies on Thai-made parts. He said the company also saw higher costs for steel and other commodities. Ford spent $2.3 billion more on commodities in 2011 than the prior year, or $100 million more than it had forecast.

Europe’s debt crisis weighed on car sales in that region.

For the full year, the Dearborn-based company made $20.2 billion, or $4.94 per share. Without the accounting gain, it earned $8.76 billion, or $1.51 per share, its highest operating profit since 1999. Full year revenue rose 13 percent to $136.3 billion.

Analysts had forecast full-year earnings of $1.86 per share on revenue of $127.31 billion.

Based on its full-year North American results, Ford said it will make profit-sharing payments of around $6,200 each to its 41,600 U.S. hourly employees. Employees will get their checks in March.

Ford moved $15.7 billion worth of tax credits and other assets off its books starting in 2006 because it wasn’t making money so it couldn’t take advantage of them. The company moved most of them back onto its books in the fourth quarter because it anticipates using them now that it’s profitable.

The change will affect Ford’s tax rates going forward. Ford’s tax rate was 9 percent in 2010 because of the assets that were being held in the valuation allowance account. Ford’s new rate will be closer to 30 percent.

Booth said the change is a strong indication that the company expects to remain profitable. Another is Ford’s decision last month to reinstate a 5-cent quarterly dividend starting in March.

But Booth said the international climate remains turbulent. Ford is trying to hold the line on incentive spending in Europe, but that could cost some sales. He doesn’t expect Asia to be a solid contributor to profits for several more years, as the company tries to expand there. The South American market is also getting more competitive, he said, and Ford’s products there are older than some new entries.

Ford is cutting European production in the first quarter by 36,000 vehicles because of weak sales. It’s also making smaller production cuts in Asia and South America, but is increasing production in North America by 18,000 vehicles.

Ford posts big profits but misses Wall Street is an Article from: Fox Rio 2 News RGV

Government figures on manufacturing and unemployment claims released Thursday raised hopes on the eve of a report on how much the economy grew in the October-December quarter.

Still, 2011 ended up as the worst year on record for new-home sales, a reminder that the economy has a long way to go.

“Business optimism seems to be picking up, which is critical to the growth and competitiveness of the U.S. economy over the long haul,” said Diane Swonk, chief economist at Mesirow Financial.

Orders for manufactured goods expected to last at least three years rose 3 percent last month, the Commerce Department said. And demand for goods that indicate business investment plans hit an all-time high.

A tax break that expired in December for large equipment purchases may have helped boost orders. Still, many economists said most companies are likely buying equipment simply because business is improving.

Manufacturers “have a real need to ramp up their spending on capital improvements … because the economy is growing and industrial capacity has not kept up,” said Carl Riccadonna, an economist at Deutsche Bank.

That growth was evident after Caterpillar said its fourth-quarter profit jumped 60 percent. The world’s largest maker of construction and mining equipment also issued 2012 guidance above Wall Street predictions.

And 3M Co., which makes everything from Post-It Notes to Scotch tape, said sales in its industrial and transportation unit rose 14 percent in the fourth-quarter. The increase was driven by parts for cars and planes.

Factories are busier in large part because businesses are ordering more communication equipment, industrial machinery and autos. Economists pay close attention to demand for such core capital goods, which are considered a good proxy for business investment plans.

In December, orders for core capital goods rose to a record $68.9 billion. That’s more than 45 percent higher than the recession low hit in April 2009.

The increase offered some reassurance about the status of the recovery, especially after core capital goods fell in October and November. On Wednesday, the Federal Reserve cited the decline while warning that the economy remains vulnerable.

After seeing the government’s report, some economists said those concerns may have been premature.

“With big-ticket spending rising and the labor market firming, the economy is a lot better than some central bankers think,” said Joel Naroff, president of Naroff Economic Advisors.

Companies are also laying off fewer workers, which has some economists optimistic about job growth in January.

Weekly applications rose last week to a seasonally adjusted 377,000. But that followed a week in which they fell to near a four-year low. And the longer-term trend is pointing to a healthier job market.

The four-week average has declined to 377,500. When applications fall consistently below 375,000, it tends to signal that hiring is strong enough to lower the unemployment rate.

The nation has added at least 100,000 jobs for six straight months. And the unemployment rate has declined to 8.5 percent – the lowest rate in almost three years.

Some economists worry that businesses are investing in heavy equipment so they don’t need to hire as many workers. But Riccadonna said that recent data show otherwise. Companies spent more in the first half of the year, and hiring picked up several months later.

“You need workers to produce the equipment and you need workers to operate it once it’s put it in place,” he said.

Growth likely accelerated in the final three months of the year to a 3 percent annual pace, according to a survey of economists by Factset. That would be an improvement over the 1.8 percent pace in July-September quarter, and a relief after seeing 0.9 percent growth in the first half of last year.

The Commerce Department will report the actual figure Friday.

Paul Ashworth, chief U.S. economist at Capital Economics, said the decline in business investment during October and November will be reflected in fourth-quarter growth. He predicts just 2.4 percent growth, even though business investment probably was stagnant during that period.

“The good news is that the growth rate of business investment should accelerate again in the first quarter,” Ashworth said. That will help to offset a projected slowdown in consumer spending. He estimates growth in the current quarter at around 2 percent.

In another sign the economy is gaining strength, the Conference Board said its index of leading economic indicators rose in December for the fourth straight month.

Housing remains the weakest part of the economy. New-home sales fell last month, and total sales for 2011 were the lowest on records dating back to 1963.

Still, sales of new homes rose in the final quarter of 2011, supporting other signs of a slow turnaround that began at the end of the year.

Sales of previously occupied homes rose in December for a third straight month. Mortgage rates have never been lower. Homebuilders are slightly more hopeful because more people are saying they might consider buying this year. And home construction picked up in the final quarter of last year.

“A sustained rise in new-home sales is imminent,” Ian Shepherdson, chief economist at High Frequency Economics. “Homebuilders say so too, and they should know.”

Economy gains as businesses spend more, fire less is an Article from: Fox Rio 2 News RGV

WASHINGTON (AP) — The number of people seeking unemployment benefits rose last week to a seasonally adjusted 377,000, up from a nearly four-year low the previous week. But the longer-term trend is pointing to a healthier job market.

Applications have trended down over the past few months. The four-week average has declined to 377,500. When applications fall consistently below 375,000, it tends to signal that hiring is strong enough to lower the unemployment rate.

Some economists say the figures suggest further job gains ahead.

The nation has added at least 100,000 jobs for six straight months. And the unemployment rate has declined to 8.5 percent, its lowest in almost three years.

Business sentiment “is now rebounding and with better bank credit availability now supporting rather than hindering businesses, claims will fall further,” Ian Shepherdson, an economist at High Frequency Economics, said in a note to clients.

Separately, orders for long-lasting manufactured goods rose as companies spent more on computers, machinery and other equipment. The Commerce Department said Thursday that durable goods orders rose 3 percent last month.

Stocks were mixed in midday trading. The Dow Jones industrial average rose 31 points, while broader indexes declined slightly.

The number of first-time unemployment applications rose 21,000 last week, the Labor Department said. Applications had plummeted two weeks ago to their lowest level since April 2008.

The average has fallen about 9 percent since Oct. 1.

Unemployment applications have been particularly volatile this month because employers have cut temporary workers hired for the holidays. The department adjusts for seasonal trends. But doing so accurately can be difficult.

But underneath all the volatility, applications have leveled off in recent weeks.

Steven Wood, an economist at Insight Economics, said the longer-term trend suggests that the January jobs report, to be released next week, will show a “solid gain” in hiring.

“The labor market is improving, albeit slowly,” Wood said in a note to clients.

Economists forecast that the nation will gain about 160,000 jobs a month in 2012, according to a survey of economists by the Associated Press. That’s up from an average of about 135,000 last year.

A better outlook for job growth has coincided with other signs of improvement in the economy. Factory output jumped in December, and consumer confidence and spending have risen. Even the battered housing market has shown some signs of slight improvement.

Still, the Federal Reserve said Wednesday that it expects growth to remain modest this year. And it forecasts only gradual declines the unemployment rate.

The Fed predicts the unemployment rate could fall as low as 8.2 percent by the end of 2012. The economy will likely expand about 2.5 percent this year.

The job market has a long way to go before it fully recovers from the damage of the Great Recession, which wiped out 8.7 million jobs. More than 13 million people remain unemployed. Millions more have given up looking for work and so are no longer counted as unemployed.

Growth could slow this year. Europe is almost certain to fall into recession because of its financial troubles. And wages aren’t keeping up with inflation. That makes it harder for consumers to spend more, potentially limiting growth.

More seek unemployment aid, but trend is positive is an Article from: Fox Rio 2 News RGV