Archive for the ‘Business’ Category

NEW YORK (AP) -- Boarding an airplane has never been safer.

The past 10 years have been the best in the country's aviation history with 153 fatalities. That's two deaths for every 100 million passengers on commercial flights, according to an Associated Press analysis of government accident data.

The improvement is remarkable. Just a decade earlier, at the time the safest, passengers were 10 times as likely to die when flying on an American plane. The risk of death was even greater during the start of the jet age, with 1,696 people dying - 133 out of every 100 million passengers - from 1962 to 1971. The figures exclude acts of terrorism.

Sitting in a pressurized, aluminum tube seven miles above the ground may never seem like the most-natural thing. But consider this: You are more likely to die driving to the airport than flying across the country. There are more than 30,000 motor-vehicle deaths each year, a mortality rate eight times greater than that in planes.

"I wouldn't say air crashes of passenger airliners are a thing of the past. They're simply a whole lot more rare than they used to be," says Todd Curtis, a former safety engineer with Boeing and director of the Airsafe.com Foundation.

The improvements came even as the industry went through a miserable financial period, losing $54.5 billion in the past decade. Just to stay afloat, airlines eliminated meals and added fees for checked luggage.

But safety remained a priority. No advertisement of tropical beaches can supplant the image of charred metal scattered across a field.

There are still some corners of the world where flying is risky. Russia, the Democratic Republic of the Congo and Somalia have particularly high rates of deadly crashes. Russia had several fatal crashes in the past year, including one that killed several prominent hockey players. Africa only accounts for 3 percent of world air traffic but had 14 percent of fatal crashes.

Still, 2011 was a good year to fly. It had the second-fewest number of fatalities worldwide, according to the Flight Safety Foundation, with 507 people dying in crashes. Seven out of 28 planes in fatal crashes were on airlines already prohibited from flying into European Union because of known safety problems. (There were fewer fatalities in 2004 - 323 - but there were also fewer people flying then.)

There are a number of reasons for the improvements.

- The industry has learned from the past. New planes and engines are designed with prior mistakes in mind. Investigations of accidents have led to changes in procedures to ensure the same missteps don't occur again.

- Better sharing of information. New databases allow pilots, airlines, plane manufactures and regulators to track incidents and near misses. Computers pick up subtle trends. For instance, a particular runway might have a higher rate of aborted landings when there is fog. Regulators noticing this could improve lighting and add more time between landings.

- Safety audits by outside firms. The International Air Transport Association, an industry trade group, started an audit program in 2003. Airlines prove to the industry and each other that they have proper maintenance and safety procedures. It's also a way for airlines to seek lower insurance premiums, which have also dropped over the past 10 years.

NEW YORK (AP) -- Stocks rose Thursday morning after the government reported that the number of claims for unemployment benefits remained at a level consistent with modest job growth. Contracts to buy homes rose to the highest level in a year and a half.

The four-week average of unemployment claims fell to a three-and-a-half-year low of 375,000, an indication that hiring could pick up.

The National Association of Realtors says its index of sales agreements jumped 7.3 percent last month. The news sent stocks of home builders sharply higher. PulteGroup Inc., Lennar Corp. and Masco Corp. all rose close to 4 percent.

The Dow Jones industrial average rose 75 points at 12,227 at 10 a.m. It fell nearly 140 points the day before.

The S&P 500 was up 7 points at 1,257, and is at breakeven for the year. The Nasdaq composite index rose 6 at 2,596.

Europe's debt woes weighed on currency markets. The euro fell to its lowest level against the dollar this year and a decade-low against the Japanese yen. At one point the euro's value against the dollar hit $1.28, the lowest level since September 2010.

ROME (AP) -- Italy's borrowing costs fell for a second day Thursday but the country's new premier said his government has more to do before it convinces financial markets it can manage the heavy debts that have made it the focus of the eurozone crisis.

Mario Monti said he was encouraged by the bond auctions at which the interest costs paid out by Italy to bond investors eased. He said his government of technocrats, in office for just a month and a half following the resignation of Silvio Berlusconi, was preparing a package of measures to get the Italian economy moving again, including efforts to boost competition and liberalize the labor market.

"Yesterday and today went pretty well, this is encouraging," Monti said at a news conference after the Italian treasury tapped investors for around euro7 billion ($9.2 billion). "But we absolutely don't consider the market turbulence to be over."

The amount raised, however, was less than the euro8.5 billion ($11 billion) maximum sought and contributed to ongoing weakness in the euro, which fell to a 15-month low against the dollar of $1.2866.

The most keenly awaited result from Thursday's batch of auctions was the euro2.5 billion ($3.3 billion) sale of ten-year bonds at an average yield of 6.98 percent. That's lower than the record 7.56 percent it had to pay at an equivalent auction last month, when investor concerns over the ability of the country to service its massive debts became particularly acute.

However, the country's borrowing rate on the key 10-year bond remains uncomfortably close to the 7 percent level widely considered to be unsustainable in the long run. Greece, Ireland and Portugal all had to request financial bailouts after their 10-year bond yields pushed above 7 percent. In the secondary markets, Italy's yield continues to hover around the 7 percent mark.

"Investors are still waiting for more progress on the reform front to ensure Italy can improve its muted growth and productivity performance since the adoption of the euro," said Raj Badiani, a senior economist at IHS Global Insight.

WASHINGTON (AP) -- The number of people seeking unemployment benefits rose last week after three weeks of decline.

Even with the gain, applications remained at a level consistent with modest hiring. And the broader trend over the past month suggests job growth could pick up further in the new year.

Weekly applications increased by 15,000 to a seasonally adjusted 381,000, the Labor Department said Thursday.

The four-week average, a less volatile measure, dropped for the fourth straight week to 375,000. That's the lowest level since June 2008.

"Despite the rise in the weekly claims data, the longer-term trend ... suggests that the recovery in the labor market is maintaining its momentum," said Michael Gapen, an economist at Barclays Capital, in a note to clients.

Applications generally must fall below 375,000 - consistently - to signal that hiring is strong enough to reduce the unemployment rate.

While layoffs have fallen sharply since the recession officially ended two and a half years ago, many companies have been slow to add jobs.

Economists caution that the figures can be volatile around the holidays. The data for seven states, including California and Virginia, were estimated because of the Monday holiday, a Labor Department spokesman said. Those estimates have in the past proven reliable, the spokesman said, and haven't required major revision.

Hiring has improved in recent months. Employers have added an average of 143,000 net jobs a month from September through November. That's almost double the average for the previous three months.

Next year should be even better. A survey of 36 economists by the Associated Press this month found that they expect the economy will generate an average of about 175,000 jobs per month in 2012.

More small businesses plan to hire than at any time in three years, a trade group said earlier this month. And a separate private-sector survey found more companies are planning to add workers in the first quarter of next year than at any time since 2008.

Technology stocks fell Wednesday, dragged down by a weak earnings report from the business software maker Oracle Corp.

Broad market indexes were flat. The Dow Jones industrial average eked out a gain of 4 points after having been down 104 points at midday.

Technology stocks in the Standard & Poor's 500 index fell 2 percent. Oracle plunged 12 percent after the business software company said it was struggling to close deals.

The rare earnings miss by Oracle seemed to reinforce worries that businesses and the government may cut back on technology spending. Especially worrying was a weak 2 percent gain in new software licenses, a key sign of demand from other businesses. Oracle had predicted gains of as much as 16 percent.

Those worries hurt other big technology companies. IBM Corp. was by far the biggest loser in the Dow, falling 3.1 percent to $181.47. A bright spot was the BlackBerry maker Research In Motion Ltd., which jumped 10 percent to $13.78 on rumors that it might be a takeover target.

Investors also had more to worry about from Europe. New data showed extensive lending from the European Central Bank to European banks. The initial reaction to the $639 billion in lending by the ECB was positive, but then worry set in that Europe's banks needed so much help in the first place.

"Long-term, people were a little bit concerned that banks needed more money than we thought they did," said Joe Bell, a senior equity analyst with Schaeffer's Investment Research.

The Dow edged up 4.16 points, less than 0.1 percent, to close at 12,107.74. On Tuesday the Dow jumped 337 - its biggest gain this month - on a strong bond sale in Spain and a surge in new home construction in the U.S.

The Standard & Poor's 500 rose 2.42 points, or 0.2 percent, to 1,243.72. Outside of the 2 percent decline for technology companies, prices rose or were flat in the rest of the S&P 500's 10 sectors.

WASHINGTON (AP) -- Some say they'll spend less on groceries. Others expect to cut back on travel. For many, there would be fewer meals out.

Across the country, Americans are bracing for another financial hardship: smaller paychecks starting in January, if Congress doesn't break a deadlock and renew a Social Security tax cut.

The tax cut, which took effect this year, benefits 160 million Americans - $1,000 a year, or nearly $20 a week, for someone making $50,000, as much as $4,272 or $82 a week for a household with two high-paid workers.

The tax cut is set to expire Jan. 1. If lawmakers don't renew it for 2012, analysts say the economy would slow as individuals and families looked for ways to spend less.

"Of course, it changes my plans," said Craig Duffy, an information-technology worker from Philadelphia and new father of twins. Duffy said his family already has tightened spending, so "we'll have to find a way to cut back."

That might mean canceling a planned trip to visit the twins' grandparents in Wisconsin, Duffy said.

The tax cut is part of legislation that would also renew benefits for the long-term unemployed. If the unemployment benefits aren't renewed, starting in January nearly 6 million people would lose weekly checks averaging about $300 - the main source of income for most of them.

House Republicans have rejected a Senate-passed bill that would extend the payroll tax cut for two months and let the long-term unemployed continue to receive benefits during that time. That plan would give lawmakers time to work on a yearlong extension.

But most lawmakers have left Washington, and no negotiations are scheduled before the year ends.

If Congress doesn't renew the two measures for 2012, analysts say the economy's growth would slow by as much as 1 percentage point.

Less money in paychecks means less consumer spending, which powers the U.S. economy. Many people who say they already depend on each paycheck for living expenses say they can't cut spending deeply. Instead, they'll trim at the edges, wherever they can.

"It will limit my spending from week to week," said Jennifer Stempel, an office manager from Denver.

Stempel said that could mean making fewer impulse buys at the grocery store, packing her lunch each day and rejoining a carpool she quit after gas prices declined this year.

"I was starting to relax about (travel expenses), but now I don't know," Stempel said.

Michael Allara of Raleigh, N.C., said a higher tax would further pressure his family, which includes three small children.

"I'm already trying to save as much as I can to pay for college," Allara said. "I don't know where the money would come from."

The tax cut lowered the Social Security tax on incomes of up to $106,800 from 6.2 percent to 4.2 percent. It's meant a maximum savings of $2,136 for an individual.

Without a deal, Americans would begin 2012 facing a tax increase just as an election year begins.

Smaller paychecks and reduced spending would coincide with a still-vulnerable period for the U.S. economy. Though growth has strengthened in the final months of 2011, some analysts say the gains might be hard to sustain. Workers' pay isn't rising much. And Europe may be on the verge of a recession that would undermine the American economy.

"A failure to extend the payroll tax holiday and the extended unemployment benefits would be a serious hit to the economy," said Mark Zandi, chief economist at Moody's Analytics. "The risk of a recession would rise and be uncomfortably high, particularly early next year, when the fallout from Europe's troubles will be the greatest."

WASHINGTON (AP) -- The economy is ending 2011 on a roll.

The job market is healthier. Americans are spending lustily on holiday gifts. A long-awaited turnaround for the depressed housing industry may be under way. Gas is cheaper. Factories are busier. Stocks are higher.

Not bad for an economy faced with a debt crisis in Europe and, as recently as this summer, scattered predictions of a second recession at home. Instead, the economy has grown faster each quarter this year, and the last three months should be the best.

"Things are looking up," says Chris Rupkey, chief financial economist at the Bank of Tokyo-Mitsubishi UFJ.

When The Associated Press surveyed 43 economists in August, they pegged the likelihood of another recession at roughly one in four. The Dow Jones industrial average was lurching up or down by 400 points or more some days.

There was plenty of reason for gloom. A political standoff over the federal borrowing limit brought the United States to the brink of default and cost the nation its top-drawer credit rating.

Most analysts now rule out another recession. They think the economy will grow at an annual rate of more than 3 percent from October through December, the fastest pace since a 3.8 percent performance the spring of 2010.

Many economists still worry that the year-end surge isn't sustainable, in part because the average worker's pay is barely rising. And Europe may already be sliding into a recession that will infect the United States.

The outlook could darken further if Congress can't break the impasse blocking an extension of a Social Security tax cut for 160 million Americans and emergency unemployment benefits.

Yet for now, the economy is on an upswing that few had predicted:

- JOBS: The number of people applying for unemployment benefits came in at 366,000 last week, down from a peak of 659,000 in March 2009. Even in good economic times, the figure would be between 280,000 and 350,000.

Employers have added at least 100,000 jobs five months in a row, the longest streak since 2006. And the unemployment rate fell from 9 percent in October to 8.6 percent last month, the lowest since March 2009.

Small businesses are hiring again, too, according to the National Federation of Independent Business.

Business is up at AG Salesworks in Norwood, Mass., which helps technology companies like Motorola find new customers. The firm has hired 26 workers to restore its staff to 56, erasing the job cuts from the recession. CEO Paul Alves plans to add an employee or two a month as long as growth continues.

"I do see more confidence than I saw 12 months ago," Alves says. "But it's good, not great. Robust isn't the word I'd use."

- SPENDING: The holiday shopping season has turned out better than anyone expected. Sales from November through Saturday were up 2.5 percent. Americans have spent $32 billion online, 15 percent more than a year ago. Retails sales were up in November for the sixth month in a row. People are spending, in particular, on clothes, cars, electronics and furniture.

- CONSUMER CONFIDENCE: Americans felt better about the economy in November than they had since July, according to the Conference Board, a business group that tracks the mood of consumers.

The board's consumer confidence index climbed 15 points to 56 in November, the biggest one-month jump since April 2003. During the Great Recession, the index fell as low as 25.

"It seems like the confidence of the traditional American consumer is higher right now," says Jim Newman, executive vice president of operations at the digital marketing company Acquity Group, which has added 100 jobs since summer.

- GAS: Falling prices at the pump have freed more money for consumers to spend on appliances, furniture, vacations and other things that help drive the economy. The national average for regular unleaded has sunk to $3.21 a gallon since peaking at $3.98 in May, according to the AAA Daily Fuel Gauge.

- INVENTORIES: Businesses are restocking shelves and warehouses, more confident that customers will buy their products. In October, their inventories were up 8.7 percent from a year earlier. An increase in inventories is expected to account for perhaps a third of growth this quarter.

The battered housing market might be showing signs of recovery. Home construction rose more than 9 percent in November from October, driven by apartment building. And the National Association of Realtors said Wednesday that sales of previously occupied homes rose 4 percent in November.

WASHINGTON (AP) -- The Senate passed legislation Saturday extending a Social Security payroll tax cut and jobless benefits for just two months, handing President Barack Obama a partial victory while setting the stage for another fight in February.

It also brought a peaceful end to a year-long battle over spending by passing a $1 trillion-plus catchall budget bill that wraps together the day-to-day budgets for 10 Cabinet departments and military operations in Iraq and Afghanistan. The House passed the measure Friday, and the White House has signaled that Obama will sign it.

The renewal of the 2-percentage-point cut in the Social Security payroll tax for 160 million workers and unemployment benefits averaging about $300 a week for the additional millions of people who have been out of work for six months or more is a modest step forward for Obama's year-end jobs agenda.

As a condition for GOP support of the payroll tax measure, Obama has to accept a provision that forces him to decide within 60 days whether to approve or reject a proposed a Canada-to-Texas oil pipeline that promises thousands of jobs.

Obama didn't reference the pipeline issue in a brief appearance at the White House after the vote. He welcomed the Senate's passage of the payroll tax cut and unemployment insurance extension and said it would be "inexcusable" for Congress not to extend them for the rest of 2012 when lawmakers return from their holiday break.

The budget bill, passed 67-32, heads to the White House for Obama's signature; the payroll tax measure won a 89-10 tally that send it back to the House - where many Republicans only reluctantly support it - for a vote early next week.

A spokesman for House Speaker John Boehner, R-Ohio, would not predict whether the House would accept the Senate payroll tax measure, saying GOP leaders would have to discuss it with the rank and file. But Democrats assume Senate Republicans would not have allowed the short-term measure to advance without a signal from Boehner that the House would go along.

Democratic and GOP leaders opted for the short-term extension of the payroll tax and jobless benefits measure after failing to agree on big enough spending cuts to pay for a full-year renewal. The measure also provides a 60-day reprieve from a scheduled 27 percent cut in the fees paid to doctors who treat Medicare patients.