QUOTE OF THE DAY
“Because of the input we received from farmers and the concerns they expressed about the impact of these rules on their lives and livelihood, we realized that significant changes must be made.” Michael Taylor, Food and Drug Administration deputy commissioner for foods Article, 1D
UA System releases 3 new cotton lines
The University of Arkansas System Division of Agriculture has released three new cotton germplasms, or breeding lines, that can be used for private or public cotton programs.
In a release Thursday, Fred Bourland, cotton breeder and director of the division’s Northeast Research Center at Keiser in Mississippi County, said germ plasms are the building blocks of cotton varieties and can be used to develop improved plants.
The germplasm lines, Arkot 0305, Arkot 0306 and Arkot 0316, all have higher yields and improved fiber quality. The lines are short-season, early maturing genotypes and are resistant to common cotton diseases, including bacterial blight, Fusarium wilt and Verticillium wilt, and show moderate resistance to tarnished plant bug.
Small quantities of seed from the three varieties can be obtained for breeding purposes from Bourland at the research center by calling (870) 526-2199. Inquiries about commercial use can be made to Don Dombek, director of the Arkansas Crop Variety Improvement Program in Fayetteville, by calling (479) 575-6884.
Mortgage rates tick up but still low
WASHINGTON - Average U.S. rates for fixed mortgages rose slightly this week but remained near historically low levels.
The Federal Home Loan Mortgage Corp., the mortgage buyer, said the rate on the 30-year loan increased to 4.47 percent from 4.42 percent last week. The average on the 15-year fixed loan rose to 3.51 percent from 3.43 percent.
Mortgage rates peaked at 4.6 percent in August and have stabilized since September, when the Federal Reserve surprised markets by taking no action on starting to reduce its $85 billion-a-month bond purchases. The Fed decided this week that the outlook for the economy appeared strong enough for it to reduce the monthly bond purchases starting in January by $10 billion.
The purchases are designed to keep long-term rates such as mortgage rates low.
Vatican signs up overhaul advisers
VATICAN CITY - The Vatican is enlisting more big-name consulting firms to advise it on structural and financial changes, tapping McKinsey & Co. to help modernize its communications operations and KPMG to get its accounting up to international standards.
The decision was announced Thursday by the commission of inquiry into the Vatican’s financial and organizational health created in July by Pope Francis as part of his plans to overhaul the antiquated and often dysfunctional Vatican bureaucracy.
Already, regulatory compliance firm Promontory Financial Group has installed two dozen people at the troubled Vatican bank to review its accounts and make sure they conform to international norms to fight money laundering and terror financing. Promontory is also advising the Vatican’s other main financial institution, APSA, which administers the Vatican’s real estate.
Meanwhile, the Vatican City State, which controls the moneymaking Vatican Museums and duty-free department store, appointed consulting firm EY to check its books.
Francis was elected pope on a mandate from cardinals to overhaul the Vatican bureaucracy and make it more responsive to the needs of the 21st century Catholic Church. He has tapped eight key cardinals from around the globe to advise him, and appointed a handful of study commissions to offer expertise. The first main proposals are expected to be floated when the cardinals meet for a third time with Francis in January.
- The Associated Press
McDonald’s closing 74 eateries in Japan
McDonald’s Corp.’s Japan business plans to close 74 outlets in the country as the fast-food operator cut its full year profit forecast by more than half in its second-largest market.
Net income will probably be $48 million in the year ending December, 57 percent lower than its previous forecast, McDonald’s Holdings Co. Japan Ltd. said in a statement to Tokyo’s stock exchange Wednesday. The company had 3,170 outlets in Japan as of the end of October.
The earnings shortfall came after sales fell for five straight months through November in the world’s third-largest economy, said McDonald’s Japan, about 50 percent owned by the Oak Brook, Ill.-based McDonald’s.
“The number of customers during the first quarter was “well below the company’s expectations,” McDonald’s Japan said Wednesday, citing investment costs to improve customer numbers as well as costs on store closures for the change in forecast.
Koreas’ factory park open to investors
SEOUL, South Korea - The two Koreas took an initial step Thursday to open their jointly run factory park to overseas investors, but the compound in North Korea remains a tough sell despite its cheap labor, foreigners who toured the complex said.
North Korea allowed about 30 foreign government officials, central bankers and diplomats to tour the industrial complex in Kaesong. The foreigners were in Seoul for a conference of the Group of 20 countries.
The visit occurred a week after North Korea executed Jang Song Thaek, the powerful uncle of its leader, Kim Jong Un, as a traitor.
A senior North Korean official told The Associated Press earlier this week that the country’s efforts to attract investment would remain unchanged after Jang’s death. Members of the delegation that toured the Kaesong complex said North Korea will face challenges in attracting foreign companies to the park, jointly run with capitalist South Korea.
“This is an authoritarian regime with a very nasty way of punishing anybody … who is against the regime,” said Paola Subacchi, director of international economics research at Chatham House, an independent policy institute based in London. “There’s no transparency, no accountability, nothing that could make an international investor happy and willing to invest.”
But Subacchi said the complex’s expansion might bring about positive changes in North Korea because it would provide jobs and help feed North Korean workers and their families.
- The Associated Press
Business, Pages 31 on 12/20/2013