LITTLE ROCK — QUOTE OF THE DAY
“Dewey is a fabled firm with a lot of great lawyers, and a demise of this magnitude is unprecedented.”
Richard J. Holwell,
a former federal judge in Manhattan Article, 1D
3-, 6-month T-bill rates unchanged
Interest rates on short-term U.S. Treasury bills were unchanged in Tuesday’s auction, remaining at the lowest levels since late April.
The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.085 percent, the same as last week. Another $27 billion in six-month bills was auctioned at a discount rate of 0.140 percent, also unchanged from last week.
The three-month rate for the past two weeks has been at the lowest level since three-month bills averaged 0.80 percent on April 23. The six-month rate for the past two weeks has been at the lowest level since the bills averaged 0.130 percent, also on April 23.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.85, while a six-month bill sold for $9,992.92.
That would equal an annualized rate of 0.086 percent for the three-month bills and 0.142 percent for the six-month bills.
Separately, the Federal Reserve said Tuesday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged up to 0.21 percent last week from 0.20 percent the previous week.
FedEx to buy Brazilian transport firm
NEW YORK - FedEx Corp. said Tuesday that it is buying Brazilian transportation and logistics company Rapidco Cometa Logmstica e Transportes SA to expand its presence in the region.
Financial terms were not disclosed.
Rapidco has served as an authorized FedEx representative in Brazil for the past 11 years and is one of the largest logistics companies in Brazil, FedEx said.
The acquisition is part of “our long-term strategy to grow our Latin American business and better serve our customers seeking to enter or expand their businesses in the Brazilian market,” Juan Cento, president of FedEx Express, Latin America and Caribbean, said in a statement.
The deal includes about 770 vehicles and trailers, approximately 9,000 workers in Brazil and 45 branches.
Rapidco’s logistics, distribution and express businesses will be integrated into FedEx in phases over an 18- to 24-month period after the buyout is complete.
The acquisition is expected to close in the third quarter.
Neiman Marcus sees profit rise 35%
DALLAS - Upscale retailer Neiman Marcus Inc. said Tuesday that its fiscal third-quarter profit grew 35 percent, as stronger consumer demand allowed it to cut back on discounts.
For the quarter ended April 28, the privately held company earned $62.6 million, up from $46.2 million in the same quarter last year. Sales rose 7.5 percent to $1.06 billion from $983.8 million.
Dallas-based Neiman Marcus, which operates websites and stores under its namesake as well as one Bergdorf Goodman location in New York, said its revenue at stores open at least a year increased 6.7 percent.
Some of the top selling product categories during the quarter included women’s contemporary sportswear and shoes, designer handbags and beauty, the company said during a conference call.
On the call, Neiman Marcus credited the quarter’s jump in profit to margin improvements stemming from higher demand that reduced its need to discount items.
Angry Birds cards slingshot to Russia
MOSCOW - Russian fans of the video game Angry Birds will soon be able to get special debit cards - or “Angry Cards” - giving them discounts on the game’s products.
Promsvyazbank, a Russian bank, said it will start issuing the new MasterCards on June 4. The cards will be printed with images of the various characters and will give users a 10 percent discount on all Angry Birds-branded products.
The game’s maker, Rovio Entertainment, has already released toys and baby clothes lines featuring Angry Birds characters.
Promsvyazbank is 74 percent-owned by two Russian tycoons, the Ananyev brothers. Commerzbank holds 14 percent in the lender via a subsidiary while the European Bank for Reconstruction and Development has a 12 percent stake.
Business, Pages 26 on 05/30/2012