The Recap: Fed leans toward fall finish for bond buying

July 12

Federal Reserve officials are in broad agreement that they will likely announce an end to their monthly bond buying program in October, bringing to a close the third round of massive bond purchases that the central bank has relied on to boost economic growth following the Great Recession. Minutes of the Fed’s June 17-18 meeting showed officials were in basic agreement that if the economy keeps improving, the final reduction in bond purchases would total a cut of $15 billion and would be announced at its Oct. 28-29 meeting.With that final reduction, the Fed’s balance sheet will be close to $4.5 trillion, more than four times the amount of the balance sheet when the financial crisis struck in the fall of 2008. The Fed has bought Treasury bonds and mortgage-backed securities as a way to lower long-term interest rates to give the economy a boost.

Business

Adidas, the German sportswear brand sponsoring both teams in Sunday’s World Cup final, has declared victory over U.S. rival Nike in its ongoing battle to remain the biggest global soccer brand. The two dominate a soccer equipment industry worth more than $5 billion a year, sharing more than 80 percent of the market for many products. While Adidas has supplied the match ball for the World Cup since 1970, Nike outfitted more teams at the competition in Brazil for the first time: 10 of 32 teams, including the host, compared with nine for Adidas.

Comcast’s purchase of Time Warner Cable “presents serious competitive concerns” and should be denied, Dish Network told U.S. regulators. The FCC is considering Comcast’s $45.2 billion proposal, made in February, to acquire Time Warner Cable. The deal would combine the two largest U.S. cable companies and add about 30 million subscribers for Comcast. Dish has also said a plan by AT&T to buy ­DirecTV for $48.5 billion also “presents competitive concerns.”

American Apparel reached a deal with investment firm Standard General for up to $25 million to bolster the clothing chain’s finances. It will also mean a shake-up on the board. The agreement will help pay off a $10 million loan from investment firm Lion Capital, which made a formal demand for payment.

Boeing is deciding what to do with six newly manufactured commercial airplane bodies that fell off a train in a derailment in western Montana, including three that slid down a steep riverbank.

British Prime Minister David Cameron unveiled legislation to compel phone companies and Internet providers to store their customers’ records.

Amazon.com was sued by U.S. regulators over mobile purchases made by children without parental permission.

LG introduced a wearable device to help parents keep tabs on their children.

Deals

Archer Daniels Midland is acquiring Wild Flavors for about $3 billion. Wild Flavors is the maker of Capri Sun juice drink and natural food ingredients.

Earnings

Alcoa reported a second-quarter profit of $138 million, reversing a year-ago loss, and the results beat analysts’ expectations. The company reported strong results in its engineered-products business, which makes parts for industrial customers, while looking to cut costs in its aluminum-smelting segment.

Economy
Washington

San Antonio Mayor Julian Castro was confirmed as secretary of the Department of Housing and Urban Development in a 71-to-26 Senate vote.

Hiring into federal jobs in fiscal 2013 slowed to the lowest level in nine years and dropped more than 14.5 percent compared with the previous year, data showed.

Transitions

Eileen Ford, who founded a modeling agency and helped launch the careers of Jane Fonda, Lauren Hutton, Christie Brinkley and other supermodels, died at age 92.

Sixty percent of people newly insured under the Affordable Care Act have already visited a health-care provider or filled a prescription, a survey found.

— From news services and staff reports

40%
U.S. households with no landlines

Many households have ditched their landlines for cellphones, the Centers for Disease Control and Prevention said, in its snapshot of the nation’s health. Adults in wireless-only households are less likely to have received their flu shots and are more likely to have faced financial barriers to health care. They’re also more likely to smoke and drink heavily.

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