OPEC's April output stays near '12 high
OPEC oil production was little changed in April, staying near the highest level since November 2012, as Saudi Arabia pumped 10 million barrels a day.
Production by the Organization of Petroleum Exporting Countries slipped 1,000 barrels to 31.295 million a day last month, according to a Bloomberg survey of oil companies, producers and analysts. The March total was revised 267,000 barrels higher to 31.296 million a day, mostly because of a change to the Saudi estimate.
Prices tumbled the first quarter of this year as U.S. output surged to the highest level in more than four decades and OPEC members pumped more barrels. The 12-member group left its production quota unchanged at a November meeting, prompting speculation that it would let crude slide low enough to curb shale development in the U.S.
"OPEC members have to pump a lot to generate the money they need for their budgets," John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone. "There's no sign OPEC is starting to reduce output even though there's an excess of supply, so the market is vulnerable."
-- Bloomberg News
Mortgages, near historic lows, tick up
WASHINGTON -- Average long-term U.S. mortgage rates rose slightly this week, but remain near historic lows.
Mortgage giant Freddie Mac said Thursday that the national average for a 30-year fixed-rate mortgage increased to 3.68 percent from 3.65 percent last week.
The average rate for a 15-year mortgage, popular with homeowners who refinance, ticked up to 2.94 percent from 2.92 percent.
A year ago, the 30-year mortgage rate averaged 4.29 percent while the 15-year mortgage averaged 3.38 percent.
To calculate average mortgage rates, Freddie Mac, the Federal Home Loan Mortgage Corp., surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was 0.6 point this week, unchanged from last week. The average fee for a 15-year mortgage also remained at 0.6 point.
-- The Associated Press
Sears in partnership with mall operator
Sears Holdings Corp. formed a joint venture with shopping-mall owner Macerich Co., the latest step in the department-store chain's efforts to wring more money from its real estate.
The 50-50 venture is taking over nine Sears properties, all of which are within Macerich malls, according to a statement Thursday. As part of the transaction, Macerich contributed $150 million to Sears. The Hoffman Estates, Ill.-based retailer will continue to operate the stores involved in the deal.
The move is part of a broader effort to raise more than $2.5 billion from Sears' extensive real estate holdings. The retailer formed a real estate investment trust called Seritage Growth Properties, which is buying hundreds of Sears and Kmart locations and leasing them back to the retailer. Sears also will contribute properties to ventures with two other mall operators, General Growth Properties Inc. and Simon Property Group Inc.
-- Bloomberg News
Arkansas' Hooters to air boxing match
Boxing fans who'd hoped to feast on chicken wings while watching the Manny Pacquiao-Floyd Mayweather fight will be able to do so after all.
Hooters of America LLC will show the match Saturday at about two-thirds of its U.S. restaurants. On Wednesday, Buffalo Wild Wings Inc. said it wouldn't air the bout at most U.S. locations because of the $5,100-a-store price tag.
The chain's two Arkansas outlets plan to show the fight, according to Ashley Paladino, a manager at the North Little Rock restaurant. She said there will be a cover charge of $30 for central seating and $20 for other seats at the North Little Rock site. Those paying the cover charge will be given a $20 voucher for use on another visit. The Hooters in Fort Smith is planning a similar cover charge and voucher.
Hooters could use a lift from the fight. Last year, Hooters' domestic sales rose 2.5 percent to about $848.8 million, following a gain of just 0.4 percent in 2013, according to restaurant researcher Technomic Inc. That trails the roughly 20 percent revenue gains Buffalo Wild Wings has posted the past two years.
Buffalo Wild Wings isn't alone in passing on the fight. Chili's Grill & Bar also won't air the bout.
"It's pay-per-view, and we do not typically subscribe to those type of events," said Ashley Johnson, a spokesman for Chili's owner Brinker International Inc.
Applebee's, owned by DineEquity Inc., said franchisees will decide if they want to show the fight or not.
About 229 of Atlanta-based Hooters' 340 U.S. locations will show the match. Hooters has about 430 restaurants globally.
-- Bloomberg News
Bank of America sinks in retail survey
NEW YORK -- Bank of America Corp. ranked worst among its peers in retail customer satisfaction in states where it has the most branches, California and Florida, according to an annual survey by J.D. Power.
As consumer sentiment toward the industry improved, Bank of America fell further behind competitors, according to the survey released Thursday. The second-biggest U.S. lender ranked last in four of 11 regions this year, including the Northwest and Southeast, compared with two in 2014.
Chief Executive Officer Brian T. Moynihan, 55, assumed more direct oversight of the firm's consumer bank in August when former co-Chief Operating Officer David Darnell was appointed vice chairman. Moynihan made the retail bank's president, Thong Nguyen, report directly to the CEO after Darnell relinquished oversight of the division.
"Any bank that performs at the bottom of the rankings should use this as a wake-up call," Jim Miller, J.D. Power's senior director of banking, said in a phone interview. "It makes sense for banks to focus on areas where they have a large presence because that's going to drive their overall success."
Bank of America's main deposit-taking subsidiary has 936 offices in California, or almost a fifth of its nationwide total, according to Federal Deposit Insurance Corp. data. Florida is second with 603.
-- The Associated Press
Business on 05/01/2015