QUOTE OF THE DAY
“Claims are really encouraging. We’ve seen what I would characterize as a meaningful improvement.”
Michelle Girard, RBS Securities Inc. economist, on the weekly unemployment-claims report Article, 1D
30-year mortgage rate slips to 3.54%
WASHINGTON - Average U.S. rates on fixed mortgages fell this week and remained near historic lows, a trend that has supported a recovery in housing.
Freddie Mac said Thursday that the average rate for the 30-year loan fell to 3.54 percent from 3.63 percent last week.
That’s near the 3.31 percent record reached in November, which was the lowest on records dating to 1971.
The average rate on the 30-year loan has been below 4 percent now for a full year.
The average rate on the 15-year fixed mortgage slipped this week to 2.72 percent from 2.79 percent last week. The record low is 2.63 percent.
The lowest mortgage rates in decades are spurring more home purchases and refinancing, helping the broader economy. Increased sales are also pushing home prices higher.
To calculate average mortgage rates, Freddie Mac, the Federal Home Loan Mortgage Corp., surveys lenders across the country on Monday through Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for 30-year mortgages was unchanged at 0.8 point. The fee for 15-year loans edged down to 0.7 point from 0.8.
Mayors push Mississippi River focus
ST. LOUIS - Mayors from Mississippi River communities are joining with members of Congress to draw attention to the waterway and the needs of communities dotting its banks.
About a dozen mayors from communities big and small were in Washington on Thursday to announce the formation of the Mississippi River Platform. The platform’s goal is to raise awareness of issues such as water quality, community development, and drought and flood preparation.
The mayors, members of the Mississippi River Cities & Towns Initiative, will work with the newly formed Mississippi River Caucus, a bipartisan group of members of Congress.
The river attracted a lot of attention over the winter when drought caused it to dip near record low levels between St. Louis and Cairo, Ill. Barges were forced to reduce loads and traffic was nearly halted.
- The Associated Press
Coca-Cola to fire 750 U.S. employees
Coca-Cola Co., the world’s largest soft-drink maker, plans to fire 750 employees in its U.S. division after a February decision to pare its distribution regions from seven to three.
The cuts in the coming months will represent about 1 percent of jobs in Coca-Cola’s North American unit, which covers the U.S. and Canada, Scott Williamson, a spokesman, said Thursday. A quarter of the job losses will be in Atlanta, where Coca-Cola has its headquarters, he said.
Chief Executive Officer Muhtar Kent has worked to restructure distribution in the U.S. since buying the North American operations of Coca-Cola Enterprises Inc. in 2010.
The Coca-Cola Refreshments bottling unit now includes east, central and west divisions.
The company’s shares rose 20 cents to close Thursday at $40.07. The job cuts were reported earlier by the Atlanta Journal- Constitution.
Krystal moving headquarters to Atlanta
ATLANTA - Officials say Krystal, the fast-food company founded in Chattanooga, Tenn., is moving ahead with relocating its headquarters to suburban Atlanta.
The Chattanooga Times Free Press reported that most workers at the company’s former headquarters in Chattanooga will be gone by April.
The accounting department and a few top executives will be the last to leave Tennessee.
Krystal will occupy the first and sixth floors of an office building in Dunwoody, just north of Atlanta.
Krystal spokesman Robin Derryberry said the company hopes to leave behind a legacy in downtown Chattanooga in the form of a museum and company store. She said the company has been gathering memorabilia over the past few months, including more than 7,000 photographs.
- The Associated Press
U.S. mining, energy face lack of workers
MORGANTOWN, W.Va. - A new report says the United States isn’t producing enough qualified workers to meet the future needs of the mining and energy sectors.
The National Research Council on Thursday urged new partnerships to tackle the problem of retiring baby boomers who cannot readily be replaced. That includes retooling higher education to produce more people competent in science, technology, engineering and math.
The report predicts a bright future for energy and mining, with continuing demand for workers and good pay for those hired. But it says some industries already face labor shortages and others will soon because universities aren’t producing graduates with the right skills.
About 46 percent of the mining work force will be eligible to retire in five years, for example, but there aren’t enough younger workers to replace them.
- The Associated Press
World wine output falls by 6% in 2012
World wine production dropped 6 percent in 2012 to the lowest level in at least 37 years on smaller grape crops in France, Spain and Argentina, according to the International Organization of Vine and Wine.
Output fell to 6.63 billion gallons from 7.04 billion gallons in 2011, the organization wrote in documents handed out to reporters in Paris on Thursday. That beat an October outlook for production of 6.55 billion gallons.
Bulk white-wine prices in France, the world’s largest producer, jumped 45 percent since the start of August, while those for bulk reds advanced 17 percent, data from crop office FranceAgriMer show.
“We’re starting to dip into stocks to meet the needs,” said Federico Castellucci, the organization’s director general. “In a time of shortage there is less bulk available. It’s starting to create tension in the market.”
France, Spain, Italy and Argentina all suffered weather damage to their vineyards last year, including hail and drought. Last year’s production was the lowest in records going back to 1975.
World wine consumption in 2012 was 6.48 billion gallons, climbing from 6.44 billion gallons in 2011, according to the International Organization of Vine and Wine.
The world faces a wine shortage of at least 264 million gallons, the equivalent of 1.3 billion bottles, Bertrand Girard, chief executive officer of Groupe Val d’Orbieu, France’s biggest wine cooperative, said in October.
- Bloomberg News
Business, Pages 28 on 03/22/2013