No Fed chairman pick expected until fall
WASHINGTON >> The White House says President Barack Obama is not expected to name a new chairman of the Federal Reserve until the fall, lowering expectations for an imminent announcement.
A senior official says the president has not made a decision on who will replace current Fed Chairman Ben Bernanke. His term expires early next year.
The president’s pick is highly anticipated, given the Fed chairman’s impact on economic policy.
Among the leading candidates for the job are former Obama economic adviser Larry Summers and Janet Yellen, the Fed’s current vice chairwoman. Yellen would be the first woman to lead the Fed.
United finds 787 transmitter with bad wire
United Airlines says it found a transmitter with a pinched wire on one of its Boeing 787s — the same problem that investigators think may have sparked a fire on a parked 787 in London.
Christen David, a spokeswoman for United Continental Holdings Inc., says the airline inspected all six of its 787s and found one emergency transmitter with a pinched wire. That transmitter was removed and sent back to Honeywell International Inc. for further inspection. It has been replaced, and David says all six planes are flying with transmitters.
Earlier this month an Ethiopian Airlines 787 parked at London’s Heathrow Airport caught fire. Investigators said it may have been caused by an emergency transmitter. That prompted U.S. authorities to order inspections for pinched or damaged wires.
T-Mobile nixes down payments, raises fees
NEW YORK » T-Mobile said Friday that it is temporarily eliminating upfront payments on new phones, but it is increasing the prices for some models through higher monthly payments.
Unlike rival carriers, T-Mobile charges the full retail price of phones, spread over two years, but reduces monthly service fees for voice, text and data. AT&T, Verizon, Sprint and others typically charge $200 or so upfront for high-end phones and make up for the rest of the phone’s cost through higher service fees over the life of a two-year contract.
Under a new payment plan introduced in March, T-Mobile charges a down payment for the phone and monthly installments until the device is paid off in two years.
For instance, customers pay $146 upfront for an iPhone 5 and $21 a month for two years for a total cost of $650. That’s about the same price Apple charges when someone buys the phone without a two-year contract for use at another carrier.
Consumer sentiment reaches 6-year high
WASHINGTON » Americans are more confident about the economy than at any time since July 2007, a survey found, suggesting consumers will spend more and accelerate growth in the months ahead.
The University of Michigan said Friday that its final reading of consumer sentiment in July was 85.1. That’s up 1 point from June but nearly 13 points higher than a year ago.
Rising home prices and steady job gains are boosting household wealth and income. The proportion of Americans who expect their inflation-adjusted incomes to rise in the coming year is greater than at any time since late 2007, the survey found. And the percentage of Americans who say their home values have risen is also at a six-year high.
Vivendi sells Activision stake for $8.2B
SAN FRANCISCO » Vivendi SA is selling most of its majority stake in Activision Blizzard Inc. for $8.2 billion, giving the video game company back its independence as the French conglomerate tries to strengthen its balance sheet.
Vivendi said Friday that 429 million of its shares will be sold to Activision itself for $5.83 billion, or $13.60 per share. Another 172 million shares will be sold for $2.34 billion to a consortium of investors including Activision CEO Bobby Kotick and Co-chairman Brian Kelly, who are contributing $100 million each.
Santa Monica, Calif.-based Activision makes games such as "World of Warcraft" and the wildly popular "Call of Duty" series. Vivendi acquired a majority stake in Activision in 2008 and combined it with its games unit, which included "Warcraft" publisher Blizzard Entertainment, so Activision will walk away a bigger company.
PepsiCo’s Naked juices no longer ‘natural’
NEW YORK » PepsiCo Inc. said it will no longer label its Naked juices as being "all natural," after a lawsuit complained that the drinks contain ingredients that don’t fit that bill. The company, based in Purchase, N.Y., also agreed to pay $9 million to settle the lawsuit.
In an emailed statement, the company said it uses an "added boost of vitamins" in some of the drinks. But a lawsuit filed against the company noted that the vitamins are actually synthetic ingredients, including a fiber made by Archer Daniels Midland.
Hedge fund pleads not guilty to fraud charges
NEW YORK » A plea of not guilty was entered Friday on behalf of a Connecticut-based hedge fund charged in a criminal indictment with letting insider trading flourish over a 10-year period as it grew into an investing giant and made hundreds of millions of dollars illegally.
The plea in Manhattan federal court was made by Peter Nussbaum, longtime general counsel for SAC Capital Advisors, a day after the company was charged with wire and securities fraud. Federal prosecutors described a culture at SAC that permitted, if not encouraged, insider trading.
ON THE MOVE
Dr. Melanie Tantisira has hired for True Vision Center:
>> Susie Braunthal as office manager. She has 30 years of ophthalmology office experience.
>> Meika Matsuda as an ophthalmology technician. She has seven years of experience in the medical field.
Patricia Fae Ho has been elected to serve a two-year term as president of the American Association of University Women. She will provide oversight and direction in promoting AAUW’s mission to advance equity for girls and women. Ho’s experience includes serving on the education faculty at Highbury College and being director of the Teacher Resource Center and an education specialist in New York.
