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BUSINESSFriday 6 November 2015
Stocks edge lower in quiet session before jobs report Kraft Heinz secures
tax breaks from Iowa
KEN SWEET in shares of Valeant Phar- jobs reports could give the “live possibility” if the econ- for Davenport plant
AP Business Writer maceuticals. Shares in the Federal Reserve enough of omy stays on track. Her
NEW YORK (AP) — The U.S. company, which traded a reason to consider raising view was echoed by an-
stock market ended Thurs- above $250 a share only a interest rates in December. other Fed policymaker later B. RODRIGUEZ
day’s trading slightly lower few months ago, fell below “We think the Fed does in the day. Yellen did stress Associated Press
as investors were hesitant $80 on reports that a major raise interest rates in De- that no decision has been DES MOINES, Iowa (AP)
to make any large bets be- hedge fund had sold its in- cember, but it is going to made yet and a move in — Kraft Heinz secured mil-
fore the release of the gov- vestment in the company be somewhat of a close December will depend on lions in tax breaks from
ernment’s closely watched and a Congressional panel call and it depends on how the economy fares Iowa economic officials on
jobs report, out Friday. is probing the company’s how the data comes in be- between now and then. Thursday for a new plant
Economists expect that U.S. in Davenport, one day
Trader Gregory Rowe, center, works on the floor of the New York Stock Exchange. The U.S. stock employers added 190,000 after the food company
market ended Thursday’s trading slightly lower as investors were hesitant to make any large bets jobs last month and that announced it planned to
before the release of the government’s closely watched jobs report, out Friday. the unemployment rate re- close seven factories in the
mained steady at 5.1 per- United States and Canada
(AP Photo/Richard Drew) cent, according to FactSet. as part of a downsizing that
Investors have become in- will eliminate 2,600 jobs.
The Dow Jones industrial operations. Valeant closed tween now and then,” said creasingly confident that The Iowa Economic Devel-
average lost 4.15 points, down $13.20, or 14 percent, David Lefkowitz, senior eq- there’s a real chance of opment Authority board
or less than 0.1 percent, to to $78.77. uity strategist for UBS wealth a December rate hike. In- approved $1.75 million in
17,863.43. The Standard & While the government’s management. vestments that track which tax credits and a $3 mil-
Poor’s 500 index fell 2.38 monthly jobs report is al- Testifying before a com- way the Fed will move inter- lion forgivable loan. Kraft
points, or 0.1 percent, to ways important to investors, mittee of the U.S. Congress est rates show the possibility Heinz, formed by a recent
2,099.93 and the Nasdaq there is additional focus on on Wednesday, Federal of a rate hike at around 60 merger, said it will use the
composite fell 14.74 points, this month’s report. With Reserve Chair Janet Yellen percent. Bond yields re- financial assistance pack-
or 0.3 percent, to 5,127.74. the fate of years of near- described the U.S. econ- mained unchanged, with age to demolish its current
Drug stocks were among zero interest rates hang- omy as “performing well” the benchmark 10-year plant in Davenport and
the biggest decliners, fol- ing in the balance, strong and said an interest rate U.S. Treasury note at 2.23 build a new facility several
lowing another steep drop October and November hike in December was a percent. Bond yields are miles away. The company
at their highest level since intends to spend $203 mil-
right before the Fed’s Sep- lion in the process. Even
tember meeting. with the new plant, hun-
“This is all to say that per- dreds of jobs will be lost.
haps the Fed is going to pull Davenport’s current plant,
off what was once thought which manufactures Os-
of as unachievable and car Mayer products and is
(end near-zero interest touted as the world’s larg-
rates) without blowing up est bologna factory, is one
the market,” said Kevin Mc- of several that the compa-
Neil, U.S. rates strategist at ny will shutter over the next
RBS, in a note to investors two years. That’s part of a
late Thursday. restructuring plan to save
In the energy markets, U.S. $1.5 billion in operating
crude oil fell $1.12, or 2.4 costs by the end of 2017.
percent, to $45.20 a barrel The others slated for clo-
in electronic trading in New sure are in California, Mary-
York. Brent crude, which is land, New York, Pennsylva-
used to price international nia, Wisconsin and Ontario.
oils, fell 60 cents, or 1.2 per- H.J. Heinz Co. announced
cent, to $47.98 a barrel.q in March it would buy Kraft
to create Kraft Heinz. The
Expedia buys vacation rental company HomeAway company, now based in
Chicago and Pittsburgh,
NEW YORK (AP) — Expedia 1 million paid listings with said the move to buy Ho- a sliding scale. has brands including
has stepped up its push to a key focus on the beach meAway is a “logical next Expedia stands to benefit Capri Sun, Jell-O, Kool-
become a one-stop hub and ski set. It was facing step” to its current rela- from the deal by adding Aid, Lunchables, Max-
for all things vacation and an increasingly competi- tionship with the company HomeAway’s core market well House, Planters and
travel with its planned buy- tive landscape in the ur- as it moves to bulk up its to its umbrella of offerings Velveeta. The construction
out of HomeAway, a vaca- ban rentals market against alternative vacation rent- and by bringing its scale to of a new manufacturing
tion-rental company. Airbnb, which boasts more als business. bear against rival vacation plant in Davenport is con-
The $3.9 billion deal an- than 2 million listings in over HomeAway had planned rental operations, includ- sidered a victory for Iowa
nounced late Wednesday 190 countries and has been to shift its business model ing Airbnb. HomeAway officials, who competed
would further consolidate valued at more than $20 toward online booking prior will benefit from Expedia’s with another state to se-
an industry which is be- billion. to the deal with Expedia, as sheer scale and its experi- cure a home for the new
coming increasingly com- Expedia’s key competitor, it aimed to better compete ence in marketing and ad facility, according to the
petitive. Priceline Group, already against rivals including Airb- optimization, according documents the board re-
Expedia already has an has its own stable of book- nb and Priceline’s Booking. to Jefferies analyst Brian viewed before approving
arsenal of offerings, includ- ing sites, including Priceline. com. It is now planning to Fitzgerald, in a note to in- the tax breaks. The docu-
ing Orbitz, Travelocity and com, Booking.com, Kayak charge a traveler service vestors. Both companies’ ments did not specify the
Cheap Tickets. and Open Table. fee which could add about boards have approved the other state. More than
Austin, Texas-based Ho- In a statement, Expedia 6 percent to most deals, deal and it is expected to 1,200 workers are currently
meAway has more than CEO Dara Khosrowshahi, though it will be based on close next year.q employed at the down-
town Davenport plant,
which was built in 1915. q
