Page 24 - ARUBA TODAY

Wednesday 31 May 2017 BUSINESS
A24

Proxy fight over GM stock heats up ahead of annual meeting

DETROIT (AP) — Shares of barely grown since GM’s Shares of GM rose almost stock. Greenlight also is to shareholders since 2012.
General Motors are rising initial public offering at $33 2 percent to $33.59 in late- nominating three directors The stock currently pays
Tuesday as a proxy fight es- seven years ago. morning trading Tuesday. for GM’s board. a 4.6 percent annual divi-
calates between the com- GM pointed out last week Greenlight’s plan would “There is nothing to lose dend.
pany and an activist share- that two independent cor- create one dividend-pay- from insisting on fresh think- In its evaluation, ISS said
holder who wants to split its porate evaluation firms, ISS ing stock and one “capital ing at a company whose that the dual stock struc-
shares into two classes. and Glass Lewis, recom- allocation” stock designed stock trades at its 2010 IPO ture proposed by Einhorn
David Einhorn’s Green- mended against the pro- for growth. The hedge fund, price,” Greenlight’s letter would set up conflicts of
light Capital said Tuesday posal. The company says which owns 3.6 percent of says. interest between dividend
that it’s sending a letter to the stock split is too risky and GM’s shares, argues that its GM, however, says that by and capital appreciation
shareholders emphasizing the company has returned plan unlocks tens of billions the end of this year it will shareholders with different
that the stock price has capital to shareholders. of value in the company’s have given $25 billion back objectives. q
US consumer spending, incomes grew solidly in April

By MARTIN CRUTSINGER weigh toward a continued
AP Economics Writer gradual pace of policy
WASHINGTON (AP) — normalization.”
Americans increased their The Fed boosted its policy
spending in April at the rate in March and many
fastest pace in four months, analysts are looking for two
bolstered by a solid gain in more rate hikes this year, in
incomes. The strong results June and September.
underscored expecta- With spending and in-
tions that the economy is comes both up 0.4 per-
poised to rebound after a cent in April, the saving
lackluster start to the year. rate was unchanged for a
Consumer spending rose third month at 5.3 percent
0.4 percent in April after a of after-tax income. It had
0.3 percent rise in March, been 5 percent in January.
the Commerce Depart- The rise in spending was
ment said Tuesday. It was led by a 0.9 percent rise in
the best showing since De- purchases of long-lasting
cember. Incomes also rose durable goods, reflecting a
0.4 percent, double the 0.2 rebound in demand for au-
percent March increase. tos after a weak first quar-
Consumer spending, which ter. Spending on non-dura-
accounts for 70 percent of ble goods such as clothing
economic activity, grew at was up a solid 0.6 percent,
the slowest pace in seven and spending on servic-
years in the first quarter. Shoppers pay for their purchases at a Marshalls & Home Goods retail store, part of the TJX Com- es such as utilities grew a
That was a key reason the panies brand, in Phoenix. Americans increased their spending in April at the fastest pace in four moderate 0.3 percent. The
months, bolstered by a solid gain in incomes, according to information released Tuesday, May
economy, as measured by 30, 2017, by the Commerce Department. The strong results underscored expectations that the 1.2 percent GDP growth
the gross domestic prod- economy is poised to rebound after a lackluster start to the year. rate in the first quarter was
uct, expanded by just 1.2 (AP Photo/Ross D. Franklin) far below the targets set by
percent at the start of the President Donald Trump.
year. Economists are hope- prices rising just 1.7 percent year when official meet on way for a rebound in eco- During the campaign,
ful GDP growth will rebound over the past year — the June 13-14, especially if the nomic growth,” said Sal Trump blasted the Obama
to around 3 percent in the slowest 12-month gain this employment report due on Guatieri, senior economist administration’s economic
current April-June quarter. year and below the Fed’s Friday shows job growth re- at BMO Capital Markets. policies, saying they had
A key inflation gauge pre- 2 percent target. Even with maining strong. “The rebound in consumer contributed to the weakest
ferred by the Federal Re- tame inflation, economists “After a two-month hia- spending will give the Fed recovery in the post-World
serve edged up a slight 0.2 believe the Fed will raise tus, consumers were out in confidence to hike rates in War II period. q
percent in April, leaving rates for a second time this force this spring, paving the June while low inflation will He promised to double
American home prices rising 2 times faster than wages

By JOSH BOAK percent over the past 12 vid Blitzer, managing direc- to 1.93 million, according dex, the weakest gain was
AP Economics Writer months ended in March, tor and chairman of the in- to the National Association in New York City_an area
WASHINGTON (AP) — U.S. the most since July 2014. dex committee at S&P Dow of Realtors. The shortage of where home prices are al-
home prices climbed in Home values are increas- Jones Indices. “People are homes to buy has caused ready high relative to me-
March at the strongest rate ing at more than double staying in their homes lon- prices to rise sharply in dian incomes. Home prices
in nearly three year as a the pace of average hour- ger rather than selling and many metro areas. in New York City have ris-
dwindling supply of houses ly earnings, making it more trading up. The largest annual gain en 4.1 percent in the past
for sale is causing prices difficult for many people to A steady job market has was in Seattle, where prices year, still much higher than
to significantly outpace in- afford to buy a home. bulked up demand among have surged 12.3 percent. U.S. average hourly earn-
come growth. “Over the last year, analysts many would-be buyers, Portland, Oregon record- ings that have increased
The Standard & Poor’s suggested that one factor but there are fewer prop- ed a 9.2 percent increase, 2.5 percent over the past
CoreLogic Case-Shiller 20- pushing prices higher was erties on the market. Sales while Dallas prices rose 8.6 12 months, according to
city home price index re- the unusually low inventory listings have plummeted 9 percent. the Bureau of Labor Statis-
leased Tuesday rose 5.9 of homes for sale,” said Da- percent over the past year Of the 20 cities in the in- tics. q