Business news in brief

QUOTE OF THE DAY

“It’s not surprising to see pretty steep declines on a year-over-year basis when you’re comparing with a time when there were tax credits available.”

Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas at Fayetteville,

talking about September home sales in the state Article, 1D30-year fixed mortgage rates at 4.23%

WASHINGTON - Rates on 30-year fixed mortgages rose slightly this week to an average of 4.23 percent, just above the lowest level in decades.

The average rate for 30-year fixed loans inched up from 4.21 percent the previous week, mortgage buyer Freddie Mac said Thursday. Earlier in the month, rates fell to 4.19 percent, the lowest average on records dating back to 1971.

The average rate on 15-year fixed loans rose to 3.66 percent. That was up from 3.64 percent a week earlier.

Rates have been falling since April. They have remained low this month because investors have been buying up Treasury bonds in anticipation of the Federal Reserve’s likely move to buy Treasury notes to stimulate the economy.

Rates on five-year adjustable mortgages averaged 3.41 percent, down from 3.45 percent a week earlier. Rates on one-year adjustable-rate mortgages remained at an average of 3.3 percent.

Verizon Wireless to pay fine, refunds

NEW YORK - Verizon Wireless has agreed to pay a fine of $25 million and at least $52.8 million in refunds to customers who inadvertently racked up data charges on their phones over the past three years, federal regulators said Thursday.

The Federal Communications Commission said the fine is the largest in its history.

The FCC started asking Verizon Wireless last year about $1.99-a-megabyte data access fees that appeared on the bills of customers who didn’t have data plans but who accidentally initiated data or Web access by pressing a button on their phones.

A Verizon Wireless representative wasn’t immediately available to comment on the agreement with the FCC.

The FCC said it would check to see that Verizon paid out the agreed-to refunds.

Verizon Wireless, the largest cell phone carrier in the U.S., is a joint venture between Verizon Communications Inc. and Britain’s Vodafone Group PLC.

Cornell to get $80 million for research

ROCHESTER, N.Y. - Cornell University said Thursday that it’s getting $80 million from one of its alums for a far ranging research center to create more efficient and less harmful practices in energy, agriculture, medicine and other dynamic arenas in economic development.

That’s the largest-ever gift from an individual to the Ivy League school in upstate New York.

David Atkinson, who grew up on a New Jersey farm and graduated from Cornell’s agriculture college in 1960, went on to build a fortune on Wall Street and, at age 72, owns and manages his own investment firm.

A three-year pilot program funded largely by Atkinson at the campus in Ithaca has already drawn $56 million for sustainability projects from government, private foundations and entrepreneurs.

The David R. Atkinson Center for a Sustainable Future views collaboration across academic disciplines - from engineering to agriculture to the humanities - as vital to making breakthroughs in interrelated subjects.

Target glitch trims coupon savings

CHICAGO - Target Corp., the mass merchandiser with about 1,750 stores nationwide, for months has been shortchanging its customers who use certain manufacturers’ coupons by crediting them for a fraction of their face value.

“It’s just a mess. It makes me not want to go there,” said Caroline Jaworski of Harwood Heights, Ill. On Wednesday morning, she said, her $1.50 coupon for two packs of feminine-hygiene products was reduced by the register to $1.02 at the Target store in Norridge, Ill.

Target says it has been aware of the problem since August.

Shoppers complained primarily about coupons that require the purchase of multiple items. Multiple-item coupons make up a quarter of all coupons, according to Inmar Inc., which helps retailers and manufacturers manage coupons.

Target has instructed cashiers to check coupons to ensure that customers are getting the full value, a Target spokesman said.

Microsoft quarterly income up 51%

SEATTLE - Microsoft Corp. said Thursday that its net income in the latest quarter rose 51 percent, boosted by higher sales of Windows and Office software to businesses.

In last year’s quarter, Microsoft deferred some revenue from Windows sales. Had it not done so, net income would have been only 16 percent higher this year in comparison.

For the fiscal first quarter that ended in September, net income rose to $5.4 billion, or 62 cents per share, from $3.6 million, or 40 cents per share, in the same period last year.

Revenue increased 25 percent to $16.2 billion, from $12.9 billion a year ago.

Analysts surveyed by Thomson Reuters had forecast net income of 55 cents per share on $15.8 billion in revenue.

Microsoft said the increase in sales to businesses of the newest versions of its Windows operating system, Office programs and server software made up for softer-than-expected revenue from consumer PC buying in the quarter.

The Windows division’s revenue rose 66 percent to $4.8 billion. Office and other business software brought in $5.1 billion, a 14 percent jump. The group that makes server software reported a 12 percent increase in revenue to $4 billion.

Southwest has big plans for Atlanta

Atlanta, home to the world’s busiest airport, will likely become Southwest Airlines Co.’s largest city in the coming years when the low-fare carrier buys AirTran Holdings Inc., an executive said.

AirTran has 202 daily departures out of Atlanta, and Southwest could “do well north of that,” Bob Jordan, Southwest’s executive vice president for strategy and planning, said Thursday at a media event at the carrier’s Dallas headquarters.

Atlanta handled almost 88 million passengers last year, three-fourths of them flying Delta Air Lines Inc. or its regional partners, according to government data. Delta is the world’s second-largest airline, and Atlanta is its biggest hub.

Southwest doesn’t serve Atlanta on its own. Its largest city right now is Las Vegas, with 224 daily departures.

Southwest agreed last month to buy AirTran for $1.4 billion in cash and stock to gain access to Atlanta and add more gates and flight slots in New York and Washington.

Business, Pages 30 on 10/29/2010

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