Hewlett-Packard Co. has decided against spinning off or selling its PC division — a plan first brought to light in August by the company’s now former CEO. HP said on Thursday that it reached its decision after evaluating the impact of spinning off the business unit, which is the world’s biggest manufacturer of desktop and notebook computers for consumers and businesses. The unit supplies a third of HP’s revenue, and PCs are an area where the company is a market leader. But it is HP’s least profitable division.
Medicare premiums lower than expected
Medicare’s basic monthly premium will be much lower than expected next year, the government announced Thursday. That could pay political dividends for President Barack Obama and for Democrats struggling to win over seniors in a close election. The new Part B premium for outpatient care will be $99.90 a month for 2012, or about $7 less than projected as recently as May. The bottom line: most seniors will pay an additional $3.50 a month next year, instead of $10.20, as forecast earlier. Some younger retirees who enrolled recently will actually pay less. They have been paying up to $115.40 a month. Instead, they’ll also pay $99.90 next year. The main reason for lower-than-expected premiums has to do with the interaction between Social Security COLAs and Medicare. Premiums have been frozen at the 2008 level of $96.40 a month for about three-fourths of beneficiaries.
New jobless claims decline slightly
New jobless claims dipped last week to 402,000, another somewhat encouraging sign for the still-troubled economy — though still too high to make a dent in the unemployment rate. The new data Thursday came as the government also said that the economy grew at a 2.5 percent annual rate in the third quarter. The Labor Department said new claims for unemployment benefits last week were down 2,000 from the previous week’s 404,000. The average for the past four weeks was 405,500. Economists say that claims need to be consistently below 400,000 for strong job growth.
Chrysler posts $212M 3rd-quarter profit
Chrysler is selling more cars and trucks for higher prices, pushing the company back into the black in the latest quarter. It’s another sign that the once-troubled automaker is turning around under its new management. Auburn Hills, Mich.-based Chrysler reported Thursday that its net income was $212 million for the July-September period, its second quarterly profit this year and only the second since 2006. Vehicle sales worldwide rose 24 percent, and revenue was up 19 percent to $13.1 billion. In last year’s third quarter, the privately held company lost $84 million, but Chrysler, now run by Italy’s Fiat SpA, said its fortunes have improved because of increased demand for its new or revamped Chrysler, Dodge Jeep and Ram cars and trucks.
From Herald news services
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