In brief: U.S. homebuilder sentiment improves in August
WASHINGTON – U.S. homebuilders grew slightly more optimistic about the housing market in August, putting their confidence at levels last seen a decade ago during the debt-fueled housing boom.
The National Association of Home Builders/Wells Fargo builder sentiment index released Monday rose this month to 61, the highest level since November 2005. The reading was 60 in both June and July. Any reading above 50 indicates more builders view sales conditions as good, rather than poor.
Citigroup affiliates settle SEC case
WASHINGTON – Two Citigroup Inc. affiliates have agreed to pay $179.5 million to resolve federal regulators’ charges of misleading investors in hedge funds that later collapsed.
The Securities and Exchange Commission announced Monday the settlement with Citigroup Alternative Investments, a subsidiary of the bank, and Citigroup Global Markets, an affiliated company.
The amount they are paying, $139.9 million plus $39.6 million in interest, will be returned to investors in two hedge funds managed by the firms.
FDA: Scope maker knew about problems
WASHINGTON – Federal regulators have uncovered new violations by the manufacturer of medical scopes recently linked to outbreaks of deadly “superbug” bacteria at U.S. hospitals.
Olympus Corp. failed to alert regulators to a cluster of 16 infections in patients who underwent procedures with the company’s scope in 2012, according to a warning letter posted online Monday by the Food and Drug Administration. Olympus did not report the problems to the FDA until 2015, when the company was already under scrutiny for a more recent series of outbreaks.
Starbucks, Panera tweak latte formulas
NEW YORK – The pumpkin spice latte battle is heating up just in time for fall.
Starbucks and Panera are hyping reformulated versions of the popular drinks in a fight to win over fans of the beverage in coming weeks.
Starbucks Corp. said Monday its version of the concoction this year will be made with real pumpkin and without caramel coloring. The change comes after blogger Vani Hari, known as the Food Babe, criticized Starbucks last year for the drink’s ingredients and its lack of transparency around the issue.
Panera meanwhile, also said its pumpkin spice latte this year will be made “entirely without artificial colors, flavors, sweeteners, preservatives or high fructose corn syrup.”
The popularity of the pumpkin spice latte at Starbucks has made it a common offering on menus at other chains during the fall.
Petco files for another IPO
NEW YORK – Petco plans to go public again almost nine years after two private equity firms bought the pet store operator.
For the purpose of calculating a filing fee, the San Diego company said Monday it expects to raise $100 million through an initial public offering. That amount can change.
The retailer of pets, pet food, supplies and services has about 1,400 stores around the U.S. and 13 in Mexico that are run through a joint venture. Petco says it earned net income of $75 million in its latest fiscal year. Its profits have fallen over the last two years but have improved over the first half of the current fiscal year. The company’s annual revenue grew to $4 billion.
The filing comes shortly after Petco competitor PetSmart was taken private.
N.Y. manufacturing down sharply
WASHINGTON – Manufacturing activity in New York state contracted in August at the fastest pace since the Great Recession, pulled down by sharp declines in new orders and shipments.
The Federal Reserve Bank of New York said Monday that its Empire State manufacturing index plunged to minus 14.9 from a positive reading of 3.9 in July. That is the lowest level since April 2009. Any reading below zero indicates contraction.
U.S. Steel idling Alabama mill
FAIRFIELD, Ala. – U.S. Steel Corp. said Monday it will close its Fairfield Works mill, one of the largest remaining pieces from Birmingham’s years as a Southern steel-making giant.
The decision will affect about 1,100 workers at the roughly century-old plant, company spokeswoman Sarah Cassella said.
An adjoining plant that employs about 700 people will continue making steel pipe, the company said, and construction of an electric arc furnace will continue on the property. An associated galvanizing operation will keep operating in Jackson, Mississippi, U.S. Steel said.