BUSINESS BRIEFS
Federal Reserve lets Wells Fargo acquire Wachovia
Advertiser news services
WASHINGTON — The Federal Reserve yesterday approved Wells Fargo's $11.7 billion acquisition of Wachovia, removing the deal's last major regulatory hurdle.
The Fed's move comes after federal antitrust regulators also moved swiftly to back San Francisco-based Wells Fargo's deal to buy the Charlotte, N.C.-based bank, approving it on Friday.
Citigroup Inc. on Thursday walked away from its efforts to buy Wachovia — which was hit by a $5 billion run on deposits in late September after the failure of Washington Mutual Inc., according to court documents filed by Citigroup.
In a brief statement yesterday, the Fed said it approved Wells Fargo taking on Wachovia Corp. along with all its banking and other units. The Federal Trade Commission included the deal on a list of transactions released Friday that received an "early termination" of their antitrust reviews.
Wells Fargo & Co. has said it plans to complete the deal by the end of the fourth quarter. The acquisition still needs the approval of Wachovia shareholders.
STARBUCKS OFFERING DEALS FOR HOLIDAYS
Starbucks is rolling out a three-pronged value proposition to try to shelter itself from the deepening holiday spending chill.
Nope. No $1 cappuccinos. But several ways for folks to save a bit. "We're putting ourselves in a position to navigate though this very difficult environment," CEO Howard Schultz said by phone from Europe.
The strategy is simple: Reward frequency and make holiday gifts cheaper. The key link to this holiday strategy is a Starbucks Gold Card for its best customers that assures them of 10 percent off most purchases. It will be rolled out nationwide Nov. 4.
Starbucks also has its first-ever Costco tie-in, which offers five $20 Starbucks gift cards for $80. And it's pricing many holiday gifts several dollars lower this year than in 2007.
The wind is not at Starbucks' back. UNBS analyst David Palmer estimates its same-store sales will be down 6 percent for its fourth fiscal quarter ended Sept. 30. Starbucks previously announced the closing of 600 U.S. stores and layoffs of about 1,000 employees. It posted its first quarterly loss — $6.7 million — for the quarter ended June 30.
BOEING, STRIKING WORKERS IN TALKS
SEATTLE — Negotiations have begun to end a five-week strike by machinists for the Boeing Co.
A note saying talks were under way with a federal mediator was posted yesterday on the Web site of the International Association of Machinists and Aerospace Workers.
The union covers 25,000 hourly production workers in the Seattle area and about 2,000 more in Oregon and Kansas. Union spokeswoman Connie Keller says she doesn't know where the talks are taking place.
An agreement was announced Wednesday to renew contract talks for the first time since the strike began Sept. 6. Key issues include job security, pay, retirement benefits and healthcare.
CHINA TO EXPAND DOMESTIC MARKET
BEIJING — China's ruling Communist Party yesterday said it would seek to expand its massive internal market to counter the global economic slowdown that has reduced international demand for Chinese goods.
The party, led by President Hu Jintao, released a statement at the end of a four-day meeting of its Central Committee where it also approved a plan aimed at doubling rural incomes by 2020.
"We should step up efforts to boost domestic demand, particularly domestic consumption and keep the economy, the financial sector and the capital market stable," the party said in a statement released through the official Xinhua News Agency.
The party also recognized inherent "contradictions and problems" with China's economy and said all members should prepare for greater challenges as the global financial crisis unfolds.
China faces difficulties from high energy costs and inflation, but officials say the country has growth potential despite global uncertainties because of its large labor pool, vast domestic market and the increasing competitiveness of its companies.
