Low jobless claims send markets soaring

Initial unemployment claims last week fell to a 51⁄2 year low, just one in a series of encouraging economic reports yesterday that sent the markets soaring to record highs.

Applications for unemployment benefits fell 19,000 last week to a seasonally adjusted 326,000, the fewest since January 2008, the Department of Labor said yesterday.

The Standard & Poor's 500, the Dow Jones industrial average and the Russell 2000 index responded by setting all-time highs. And the S&P broke through 1,700 points for the first time.

"It looks like we're strengthening a little bit," said Christine Armstrong, senior vice president at Morgan Stanley. "We're cautiously optimistic. We see things improving, but we're not off to the races right now."

Also helping to send markets higher was a positive read on China's manufacturing that helped shore up Asian markets. A trade group yesterday said U.S. factories had revved up production last month.

The Department of Labor will release July unemployment numbers this morning. The numbers could affect the markets, but Armstrong cautioned against reading too much into one set of numbers and one day of trading.

"It can be a coin toss from one day to another," she said. Still, she was hoping for positive figures today. "What I'm hearing are good numbers."

Elliot Winer, chief economist at Northeast Economic Analysis Group, said he expected the unemployment rate to go down, but was worried about the lack of progress Massachusetts has made. "We really seem to be treading water this year," he said.

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The Boston Globe drags down Times

Falling revenue at the Boston Globe's media group only heightens the urgency for The New York Times to finally unload the newspaper — even at a disappointingly low sales price — before it can drain any more of the company's attention and resources, newspaper experts told the Herald.

"That paper's still struggling," said Ed Atorino, a media analyst for The Benchmark Co. "They can't wait to get rid of it, so I see them giving it away to somebody. It's been going downhill, taking up a lot of management time. It's really been a disappointing asset. I think they wanted to sell it a long time ago and couldn't."

Revenue at the New England Media Group, which owns the Globe, boston.com and the Worcester Telegram & Gazette, fell 7 percent last quarter compared to a year ago. Advertising numbers fell 10 percent. Circulation revenue — even with a May spike in home delivery prices — fell 2 percent. Other revenues dropped 14 percent.

"We expect that a sale will help the company's overall operating and (earnings before interest, taxes, depreciation and amortization) margins," said Times CFO Jim Follo in the company's second-quarter earnings conference call yesterday.

Bidders for the Globe reportedly include Red Sox owner John Henry, Tampa-based Revolution Capital and a group consisting of the Taylor family and former Time CEO Jack Griffin.

Ken Doctor of Newsonomics said the Globe's 10 percent ad plunge is higher than most metro papers, and he called the circulation revenue drop problematic. Newspapers with a digital paywall, like the Globe, have typically seen circulation revenue climb about 10 percent in the first 12 to 18 months.

"To go negative when you put it in shows a structural problem," said Doctor, who blamed it on either the paper's quality or cost. "As buyers have looked at the books, they realize that's a big problem."

As a result, it's stunting the Times' growth, Doctor said. He crunched the numbers and found the Times' circulation revenue would have actually been up 7.4 percent in the first half of the year — instead of just 5.1 percent — without the Globe group in its portfolio.

Times execs also said yesterday it would be "unlikely" employee pension obligations would be included in the Globe sale.

"It's not the pension obligations that are weighing down the price of the Globe," said Doctor, "it's the overall financials of the Globe itself."

Times stock fell 3.28 percent yesterday to close at $11.78 per share.

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Low home inventory causes prices to leap

Inventory is slipping and prices are ­rising. It's the perfect storm for a seller's market in the Hub.

Second-quarter statistics were 
released last week by the LINK 
Property Network and with the lack 
of inventory here in Boston, prices have continued to creep upward as demand outpaces supply.

Here are some of the neighborhood statistics from around the city of 
Boston as of June:

Back Bay

• 63 units — down from 115 this time last year.

• $1,100,000 average price of a two-bedroom condo — up from $997,918 last year.

• $600,971 average price of a one-bedroom condo — up from $589,302 last year.

Beacon Hill

• 23 units — down from 37 this time last year and 66 the year before.

• $760,820 average price of a two-bedroom condo — up from $735,230 last year.

• $446,461 average price of a one-bedroom condo — up from $427,606 last year.

South End

• 54 units — down from 102 this time last year and 154 the year before.

• $784,865 average price of a two-bedroom condo — up from $716,135 last year.

• $488,320 average price of a one-bedroom condo — up from $441,903 last year.

The net take-away continues to be that Boston is in a very short supply of inventory. It continues to be a Catch-22 in that sellers would like to sell but they in turn have no place to go.

With very little new construction over the past few years as a result of the recession, builders are working feverishly to catch up to the levels needed to keep in line with demand.

This isn't to say that by simply putting your property on the market in any of these neighborhoods that it will simply sell for a higher price than you may have purchased it for.

You still have to abide by the same market conditions that have always applied: such as how renovated your property is, how well maintained is the building in general, how healthy is the association, are there any property assessments due to be completed in the near future, etc.

All of these conditions would obviously affect your home's value. However, in general the market is good for sellers.

Charlie Abrahams is a licensed real estate agent 
in Boston who works 
with buyers and sellers 
and can be reached at: 
Bostonrealestate@
charlieabrahams.com.

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US to auction wind energy leases off RI, Mass.

PROVIDENCE, R.I. — The federal government will for the first time sell competitive leases for wind energy on the outer continental shelf as it holds an auction for leases for wind farms off the coast of Rhode Island and Massachusetts.

The auction will be held Wednesday, although the Bureau of Ocean Energy Management said it could stretch into Thursday.

The area will be auctioned as two leases. It is 9 nautical miles off the coast of Rhode Island, sitting between and to the south of Block Island and Martha's Vineyard.

The Department of Energy estimates that the area could support enough electricity to power more than 1 million homes.

There are currently no offshore wind farms in the United States, though several are being developed in state and federal waters.

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Delta CEO calls for open skies in Japan

TOKYO — The CEO of Delta Air Lines is urging the Japanese government to open the country's skies to greater competition from foreign airlines.

Richard Anderson said Wednesday that protection of domestic carriers is holding back foreign airlines such as Delta. Japan is a key Asian market for the U.S. airline.

He told a press conference he wants to move Delta's Tokyo base to Haneda Airport from Narita International Airport because Haneda is closer to downtown Tokyo, but the government is creating obstacles.

He cited plane slot restrictions at Haneda and said the government is prioritizing domestic carriers such as All Nippon Airways and Japan Airlines.

"I think their measured approach is that they'd like to leave us at the less preferable airport outside of town to advantage the two incumbent flag carriers," said Anderson.

But Hirokazu Kaneko from the Aviation Industries division of the Japan Civil Aviation Bureau said Haneda is at full capacity based on the bureau's calculations.

"We're reaching a point where adding more slots would become an issue of safety," said Kaneko.

Anderson said Delta moved its Tokyo hub to Narita in 1976 at the government's request. Now Delta wants to be based in Haneda again because it is closer to central Tokyo and draws more business. Narita is 68 kilometers (42 miles) from central Tokyo, about three times further away than Haneda.

Anderson said Delta needs 25 additional plane slots to move back.

Haneda will be adding 42 daytime slots for long distance flights in the Spring of 2014.

"Slots in Haneda are extremely valuable because it draws so many travelers so naturally, it's very competitive," said Yoshihisa Akai, head of research at Japan Aviation Management Research. "With so much competition as is, it's unlikely Delta will be able to get all the slots it wants."

Anderson said he will keep voicing his concerns.

"We look forward to the Japanese government opening up the skies, because we do not have open skies in Japan right now," he said.

At the press conference, Anderson also said Delta is open to forming an alliance with a Japanese carrier in the future. In 2010, Japan Airlines spurned Delta's promises of cash and a broad global network to stay in its alliance with American Airlines.

___

Follow Azusa Uchikura on Twitter at www.twitter.com/auchikura

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Global stock markets drift ahead of Fed statement

BANGKOK — Global stock markets drifted Wednesday as investors waited for the Federal Reserve's latest assessment of the U.S. economy.

The Fed is not expected to announce any big changes when it releases an updated policy statement Wednesday at the end of a two-day meeting. However, investors are anxious for clues about when the Fed might start scaling back its monetary stimulus.

"We're unlikely to get anything new, but obviously everyone is cautious just in case we get anything new," said Andrew Sullivan of Kim Eng Securities in Hong Kong.

The Fed is buying $85 billion in Treasury and mortgage bonds every month to spur growth and lending. While long-term interest rates have been held near record lows, the program has also drawn investors away from bonds and into higher yielding investments like stocks and commodities. Recent hints that the Fed might start scaling back its stimulus program have sent stocks reeling.

Investors are also waiting for the U.S. government to Wednesday report its first estimate of economic growth for the second quarter. DBS Bank Ltd. in Singapore said analysts are expecting a drop in GDP growth to 1 percent from 1.8 percent. Most economists blame tax increases and government spending cuts for the sluggish second quarter.

Investors are also focusing on U.S. employment figures for July, due out Friday. Fed Chairman Ben Bernanke has said that the central bank could begin to scale back its bond purchases later this year if the economy strengthens, but Fed officials typically put greater weight on employment and inflation data than the GDP figures.

Britain's FTSE 100 rose 0.6 percent to 6,607.08. Germany's DAX was nearly unchanged at 8,271.51. France's CAC-40 rose 0.1 percent to 3,989.25.

Wall Street looked set for another lackluster day, with Dow Jones industrial futures nearly flat at 15,494. S&P 500 futures rose 0.1 percent to 1,685.90.

Japan's Nikkei 225 index tumbled 1.5 percent to close at 13,668.32. The Tokyo benchmark closed down 3.3 percent on Monday and then recovered about halfway Tuesday.

Hong Kong's Hang Seng fell 0.3 percent to 21,883.66. South Korea's Kospi dropped 0.2 percent to 1,914.03. Australia's S&P/ASX 200 advanced 0.1 percent to 5,052. Shares in Sydney jumped in the aftermath of comments by Reserve Bank of Australia governor Glenn Stevens, who on Tuesday suggested there was more room for interest rate cuts if needed.

Benchmarks in mainland China rose while Singapore, the Philippines, Thailand and Taiwan fell.

Chinese property stocks were among the big gainers. Shanghai-listed Poly Real Estate Group advanced 3.2 percent while China Resources Land rose 3.4 percent in Hong Kong.

Benchmark crude for August delivery was up 52 cents to $103.60 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.47 to close at $103.08 on the Nymex on Tuesday.

In currencies, the euro rose to $1.3289 from $1.3259 late Tuesday. The dollar fell to 97.68 yen from 98.06 yen.

___

Follow Pamela Sampson on Twitter at http://twitter.com/pamelasampson

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New growth proposed for site in Forest Hills

Developers of a proposed 280-unit apartment complex near the Forest Hills MBTA station in Jamaica Plain will put their plans to the public at a community meeting next month.

Forest Hills Arborway, LLC has filed plans to build The Commons at Forest Hills Station, featuring four apartment buildings and approximately 8,000 square feet of "commercial/retail/amenity space."

The Washington Street site near Roslindale was formerly a petroleum product distribution depot.

The meeting is slated for Aug. 21 at 6:30 p.m. at Curtis Hall in Jamaica Plain.

Forest Hills Arborway, which consists of John M. Corcoran & Co. and The Brennan Group, formally filed the plans with the Boston Redevelopment Authority last week.

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Panel backs lung cancer screening for some smokers

UNDATED — The government says more cancer deaths could be prevented if certain current and former heavy smokers get annual CT scans, a type of X-ray.

It's the first time the government has gotten behind lung cancer screening for heavy smokers.

Monday's advice by the U.S. Preventive Services Task Force is a draft recommendation. If it becomes final as expected, it would clear the way for insurers to cover the scans. The panel recommends them for people ages 55 through 79 who smoked a pack of cigarettes a day for 30 years or the equivalent, such as two packs a day for 15 years.

Whether screening would help younger or lighter smokers is not known, so scans aren't advised for them. Scans also aren't advised for people who quit at least 15 years ago or people too sick or frail to undergo cancer treatment.

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Time Warner drops CBS, then halts decision

BEVERLY HILLS, Calif. — The fee dispute between Time Warner Cable and CBS Corp. took an odd turn Monday night when the cable giant announced it was turning off the broadcaster in three major cities, then quickly reversed the decision.

The two sides negotiated through the day to avoid a programming blackout and kept extending the deadline.

Around 9 p.m., Time Warner Cable said about 3 million customers in New York, Los Angeles, and Dallas would lose the network and four CBS cable stations because of "outrageous demands for fees" by CBS.

"We offered to pay reasonable increases, but CBS's demands are out of line and unfair — and they want Time Warner Cable to pay more than others pay for the same programming," Time Warner Cable said in a statement.

CBS countered, saying that it remained firm in getting fair compensation for its programming. It accused Time Warner Cable of having a "short-sighted, anti-consumer strategy."

Not long after the two sides traded barbs, Time Warner Cable said it halted its plans to drop CBS at the broadcaster's request. CBS said both sides have agreed to continue negotiations.

The disagreement centers mainly on how much Time Warner Cable pays for the right to retransmit signals from the CBS-owned stations.

"As we've said, we feel like we should be paid for our programming," CBS chief executive Les Moonves told the Television Critics Association earlier Monday.

Dozens of blackouts have occurred nationwide in fee fights over the years, but many get resolved at the last minute.

Selling retransmission rights has become a big business for broadcasters such as CBS. Research firm SNL Kagan estimates retransmission fees will reach $3 billion industrywide this year and double to $6 billion by 2018.

Time Warner Cable has said it's resisting a fee hike demand by CBS so prices don't go up for customers. CBS said Time Warner Cable isn't agreeing to terms that its competitors have accepted.

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Ford recalls some 2013 C-Max hybrids over roofs

DETROIT — Ford Motor Co. is recalling 33,021 C-Max hybrid cars because they may not adequately protect occupants' heads in a crash.

Vehicles involved were made between Jan. 19, 2012, and June 25, 2013 and don't have panoramic roofs. C-Max hybrids with panoramic glass roofs aren't involved in the recall.

The National Highway Traffic Safety Administration discovered during vehicle testing that the car failed to conform to safety standards pertaining to head injury risk. Ford says there have been no reported injuries related to the issue.

Ford will notify owners of the recall next month. Dealers will install additional energy absorbing material between the car's headliner and the roof.

Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

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