Verizon has greatly increased upload speeds on its FiOS Internet service, giving customers of the fiber-optic network virtually the same speeds for uploading and downloading. Starting Tuesday, the company said its upload speeds can reach up to 15 megabits per second. The service will be most useful to FiOS customers who work at home and frequently need to bring in large files of data, said Verizon spokesman Kevin Laverty. Locally, the FiOS service is available in parts of Everett, Mill Creek, Bothell, Lynnwood and Edmonds.
Housing, credit will slow economy
The housing collapse and credit crisis will slow economic growth and nudge up unemployment next year, the Federal Reserve said Tuesday in a first-of-its-kind forecast that some economists believe will lead to interest rate cuts early in 2008. Don’t count on a cut in rates at the Fed’s December meeting, however, analysts say. The Fed called its rate reduction in late October a “close call” and hinted that its two cuts this year may be sufficient to energize the economy, according to minutes of the Oct. 31 closed-door meeting made public Tuesday. But with the Fed’s longer-term forecast calling for moderating inflation next year and beyond, economists believe the central bank will have leeway to reduce rates next year. The credit crunch has made it harder and more costly to borrow money.
No. 2 loan buyer posts record loss
The mortgage crisis intensified Tuesday as Freddie Mac, the nation’s No. 2 buyer and guarantor of home loans, posted its largest quarterly loss ever and warned that it may need to curtail its business unless it can raise fresh capital. Freddie Mac lost $2 billion in the third quarter, much more than Wall Street was expecting, primarily because it needed to set aside $1.2 billion to account for bad home loans. Freddie Mac also said it may slice in half its quarterly dividend of 50 cents per share, which would be its first dividend cut since becoming a public company in 1989. That double dose of bad news sent Freddie Mac’s shares skidding 28.7 percent.
Target, Limited post sales drop
An unseasonably warm fall hurt sales of clothing and home items at discount retailer Target Corp., and was partly to blame for a 4-percent drop in third-quarter profits. Limited Brands also blamed an unusually warm fall for weaker-than-expected third-quarter profits on Tuesday. The operator of Victoria’s Secret and Bath &Body Works stores earned $12.1 million for the quarter, down from $23.5 million a year ago.
H&R Block’s CEO steps down
Mark Ernst has resigned as chairman, president and chief executive of H&R Block Inc., the tax preparation and accounting services company that is reeling from its foray into the collapsing subprime mortgage business. The company said Tuesday that Ernst’s replacement as chairman is Richard Breeden, who led a dissident shareholder group that won three seats on the H&R Block board. A retired Aetna Inc. chief financial officer, Alan Bennett, was named interim CEO while H&R Block looks for a permanent replacement.
From Herald staff and news services
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
