in brief
DES MOINES, Iowa
Rules aim to force employers to spell out fees for 401(k)s
The Department of Labor released new rules on Thursday designed to force companies that provide 401(k) plans and services to employers to spell out all the fees charged.
Any service provider paid more than $1,000 in connection with retirement accounts must provide detailed reports on fees, according to the new rules. That includes brokerage services and record-keeping companies.
Labor officials will give retirement plan providers a year to plan for the new rules.
The department will publish the regulations today in the Federal Register and take comments until Aug. 30. It's specifically seeking comments on the costs service providers will incur by providing a summary statement of fees to companies offering 401(k) plans to workers.
The new rules go into effect on July 16, 2011.
NEW YORK
Slowdown in losses boosts
JPMorgan Chase's earnings
JPMorgan Chase & Co. said Thursday its second-quarter net income soared 77 percent to $4.8 billion as a slowdown in losses from failed loans helped offset a difficult spring in trading and investment banking.
The strong results offered hope that loan losses at the nation's big banks may have peaked in the first half of 2010, a critical step before banks can become stronger and boost lending to consumers and small businesses.
JPMorgan Chase, the first of the big banks to report earnings for the April-June period, easily surpassed analysts' expectations as it earned $1.09 a share, up 28 cents a share from a year earlier. Analysts had forecast a profit of 67 cents per share in the just-ended quarter.
Net revenue, however, fell nearly 8 percent from a year ago to $25.6 billion.
SAN FRANCISCO
Hurt by European debt crisis, Google results miss forecasts
Google Inc.'s second-quarter earnings missed analysts' target as higher expenses and the fallout from the European debt crisis dragged down the Internet search leader.
Google, which is based in Mountain View, Calif., earned $1.84 billion, or $5.71 per share, in the April-June period, up 24 percent from $1.48 billion, or $4.66 per share, a year ago.
If not for expenses covering employee stock compensation, Google said it would have made $6.45 per share. That figure was below the average estimate of $6.52 per share among analysts polled by Thomson Reuters.
Revenue climbed 23.6 percent to $6.82 billion from $5.52 billion. After subtracting commissions paid to its ad partners, Google's revenue stood at $5.09 billion -- about $10 million above analyst projections.
NEW YORK
After BP says it stops oil flow from leak, company shares rise
BP shares rose about 8 percent and other energy stocks rallied as the British oil giant said it succeeded in stopping the flow of oil into the Gulf of Mexico for the first time since April.
Shares rose $2.74, or 7.57 percent, to close at $38.92 Thursday. They were up about 3 percent as BP began testing a cap atop the gushing oil well. The shares shot higher in the last hour of trading after BP announced the oil had been stopped when all valves on the cap were shut, as part of the test.
The shares have gained about 46 percent since hitting a 14-year low of $27.02. But they're still well below the $60.48 they fetched on April 20 when a BP-operated rig exploded and set off the oil spill that lasted 85 days.
SEATTLE
Inspections may push delivery of first Boeing 787 into 2011
The first delivery of Boeing's new 787 jetliner may slip into early 2011 because of inspections and instrument changes on the flight test aircraft, the head of the program said Thursday.
Scott Fancher, general manager of the program for Boeing Commercial Airplanes, told reporters in a teleconference that Boeing still intends to deliver its first 787 to Japan's ANA by the end of the year. He said that "as a cautionary note," Boeing is warning that the delivery might be extended a few weeks into 2011.
If so, it would be another in a long series of delays on the 787 program, many due to problems with components built by suppliers around the globe that ship huge sections of the plane to be assembled at Boeing's Everett, Wash., plant. Boeing, which has orders for 863 of the twin-aisle jets, originally planned to deliver the first 787 in 2008.
NEW YORK
Carlyle Group agrees to buy NBTY for $3.8 billion in cash
The Carlyle Group has agreed to buy vitamin maker NBTY Inc. for $3.8 billion in cash in one of the largest private equity deals so far this year.
NBTY makes nutritional supplements and vitamins under the brands Nature's Bounty, Vitamin World and others. Its board has approved the deal.
Carlyle, whose two largest partners are a major California retirement system and an investment company from Abu Dhabi, plans to pay $55 for each NBTY share. That's 47 percent above the stock's closing price on Wednesday.
Carlyle invests in a wide range of industries, with about 8 percent of its holdings in consumer and retail companies. Its holdings include U.K.-based pharmacy Alliance Boots plc, doughnut maker Dunkin' Brands Inc. and casino company Harrah's Entertainment Inc.
NEW YORK
It's July, but shops are already worrying about Christmas
It may be hot outside, but stores across the nation are already getting a chill thinking about Christmas.
Retailers are having second thoughts about orders they placed earlier this year, when the economic recovery looked stronger and Americans were more willing to spend money. Now they worry they could end up stuck with too many toys and sweaters come the holidays and have to cut prices.
Stores are fretting that even small increases in their holiday stocks for this year may be too ambitious. Some are waiting to see how spending turns out in the back-to-school season before trimming their holiday orders, but others aren't wasting any time.
Extra virgin may be extra false: study finds oil packaging lies
A University of California study shows that many of the olive oils sold in the United States are not the top-grade, extra-virgin oils that their labels proclaim.
Researchers at the school's Davis campus conducted the first academic investigation of olive oil quality by sampling popular international and national brands.
They found that 69 percent of the imported oils and 10 percent of domestic oils failed international standards.
The study comes as the U.S. Department of Agriculture is preparing to adopt scientifically verifiable standards for terms such as "virgin" or "extra virgin" to clear up concerns about labeling accuracy.
