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BUSINESS A25
Wednesday 23 September
US rental home prices rise at slower pace in August
JOSH BOAK Zillow said Tuesday. Rental lar slowdowns were seen ground on 12.7 percent growth.
AP Economics Writer prices are still climbing at a in Dallas, Philadelphia, Mi- more apartment buildings Average hourly earnings
WASHINGTON (AP) — U.S. faster pace than average ami, Boston, San Francisco, this year-to-date, accord- have risen only 2.2 per-
home rents rose at a slower earnings, increasing the fi- Phoenix and Denver last ing to the Commerce De- cent over the previous 12
pace in August, a down- nancial burden of housing month. partment. months, according to the
shift that may reflect the and potentially delaying The deceleration may re- This includes a 42 percent Labor Department.
rise of apartment construc- the accumulation of sav- flect the impact of new jump in apartment con- The result is an affordability
tion in many major cities. ings to buy a home. units coming onto mar- struction in the Northeast crunch for renters.
Median rents rose a season- Rental increases tailed off ket, which has increased and 25 percent increase in More than a quarter of
ally adjusted 3.8 percent in several metro areas in the available supplies the West. all renters — 11.2 million
from a year ago, off from August. In Los Angeles, the and therefore limited how Still, rental housing costs households — devoted at
the annual pace of 4.2 per- pace slipped to 4.2 per- much prices can rise. Con- has been rising nationwide least half their incomes to
cent in July, real estate firm cent from 4.8 percent. Simi- struction firms have broken at roughly double wage rent in 2013. q
CEO: ‘I am endlessly sorry’ Volkswagen brand is tarnished
GEIR MOULSON “Millions of people across ing for your trust on our way ly,” Winterkorn said. we have totally screwed
PAN PYLAS the world trust our brands, forward,” he said. “We will The damage to Volkswa- up,” the head of Volkswa-
Associated Press our cars and our technolo- clear this up.” gen’s reputation was re- gen’s U.S. division, Michael
BERLIN (AP) — Volkswagen gies,” Winterkorn said Tues- VW has yet to explain who flected in the market’s re- Horn, said Monday while
AG’s smog-test troubles day in a video message. installed the software, un- sponse. Volkswagen’s ordi- unveiling a new Passat
escalated Tuesday as the nary shares fell 20 percent model in New York.
company acknowledged Volkswagen CEO Martin Winterkorn, left, and Volkswagen Tuesday to close at 111.20 “We must fix those cars
putting stealth software in branch head Herbert Diess at the Frankfurt Auto Show IAA in euros. They’re down 31 per- to prevent this from ever
millions of vehicles world- Frankfurt, Germany. Winterkorn apologized for the manipula- cent since the crisis began. happening again, and we
wide. The scandal has now tions of VW diesel cars in the U.S. to defeat emission tests , and The EPA said Friday that have to make things right.
cost VW more than 24 bil- promised a fast and thorough investigation. VW faces potential fines of With the government, the
lion euros ($26 billion) in $37,500 per vehicle, and public, our customers, our
market value. (AP Photo/Jens Meyer) that anyone found person- employees, and very im-
Volkwagen stunningly ad- ally responsible is subject to portantly, with our dealers.”
mitted that some 11 million “I am endlessly sorry that der what direction, and $3,750 per violation. The shockwaves were felt
of the German carmaker’s we have disappointed this why. After blaming unrelated is- across the sector as traders
diesel vehicles contain soft- trust. I apologize in every “I do not have the answers sues for more than a year, wondered who else may
ware that evades emissions way to our customers, to to all the questions at this the company finally told get embroiled. Germany’s
controls, far more than the authorities and the whole point myself, but we are in U.S. regulators on Sept. 3 Daimler AG, the maker of
482,000 identified by the public for the wrongdoing.” the process of clearing up that it installed software Mercedes-Benz cars, was
U.S. Environmental Protec- “We are asking, I am ask- the background relentless- that switches engines to a down 7 percent Tuesday,
tion Agency as violating cleaner mode during of- while BMW AG fell 6 per-
the Clean Air Act. ficial emissions testing. The cent. France’s Renault SA
Volkswagen also warned software then switches was 7.1 percent lower.
that future profits could be off again on the road, en- “Brands are all about trust
affected, and set aside an abling cars to drive more and it takes years and
initial 6.5 billion euros ($7.3 powerfully while emitting as years to develop. But in the
billion) to cover the fallout. much as 40 times the legal space of 24 hours, Volkswa-
CEO Martin Winterkorn pollution limit. gen has gone from one
apologized for the decep- “Let’s be clear about this. people could trust to one
tion under his leadership Our company was dishon- people don’t know what
and pledged a fast and est. With the EPA, and the to think of,” said Nigel Cur-
thorough investigation, but California Air Resources rie, an independent U.K.-
gave no indication that he Board, and with all of you. based sponsorship and
might resign. And in my German words, branding consultant. q
BofA shareholders let Moynihan keep CEO, chairman jobs
KEN SWEET win the trust of its investors. gave the chairman role to the overwhelming victory it pany forward for them and
AP Business Writer In 2009, BofA’s shareholders Moynihan, saying the com- needed to show that it has for our customers and cli-
NEW YORK (AP) — Bank of voted to strip the chairman bined role was more ap- investors’ confidence,” said ents,” he said in a prepared
America CEO Brian Moyni- title from then-CEO Ken propriate for how the com- Michael Pryce-Jones, with statement.
han will keep both his CEO Lewis, pany was being managed. CtW Investment Group, a JPMorgan Chase & Co.
and chairman positions fol- partly as a vote of no-con- But activist shareholders say financial advisory firm af- CEO Jamie Dimon faced a
lowing a Tuesday vote by fidence following a series the decision goes against filiated with more than similar vote two years ago,
shareholders. of bungled and controver- what investors voted for six $250 billion in union pension and also kept both jobs.
It was a significant win for sial acquisitions, including years ago. funds. That proposal was removed
the bank, which had lob- the purchase of mortgage “Even though it mustered Still, Moynihan declared last year before the bank’s
bied hard for the dual role. lender Countrywide Finan- a majority, Bank of Amer- victory. annual meeting, eradicat-
Only 63 percent of eligible cial and the financial firm ica’s leadership emerges “We are pleased our share- ing the threat.
shareholders voted in fa- Merrill Lynch. wounded and weakened holders had the chance to BofA shares fell 13 cents,
vor, however, far from a BofA’s board of directors from today’s shareholder express their views, and we or 0.8 percent, $15.57, as
solid majority, showing how reversed that shareholder vote. appreciate their support to broader stock markets
far the bank must still go to vote last year, when they The bank failed to secure continue driving our com- declined.q
