Raytheon signs missile deal with Poles
WARSAW, Poland -- U.S. Patriot missile-maker Raytheon and Poland have signed a letter of intent to cooperate in production that could pave the way for the purchase of missiles.
Defense Minister Antoni Macierewicz said Thursday the step brings Poland closer to buying a number of medium-range Patriot missiles for its air defense, but doesn't mean the deal is done. Poland is bolstering its defense capabilities in the face of Russia's military activity.
The deal signed Thursday provides for Poland's Autosan company, part of an armaments consortium, to produce some parts for Raytheon.
The move comes after Poland recently pulled out from advanced talks with France-based Airbus Helicopters over a $3.5 billion deal to buy combat aircraft. It said, without providing details, that it would have gone against national security interests.
-- The Associated Press
Mortgage rates climb 5th-straight week
Long-term U.S. mortgage rates marked a fifth week of surges, reaching their highest levels this year.
Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed rate loan rose to 4.08 percent from 4.03 percent the previous week.
The rate on 15-year home loans, a popular choice for people who are refinancing, jumped to 3.34 percent from 3.25 percent.
Long-term mortgage and interest rates have climbed in the four weeks since Donald Trump's victory on Nov. 8 to become the country's next president.
The effect of advancing mortgage rates could be seen in reduced activity by prospective homebuyers. Applications for mortgage loans fell 9.4 percent in the week ended Nov. 25 from a week earlier, according to the Mortgage Bankers Association. Applications for refinancing dipped 16 percent.
Higher mortgage rates, along with rising house prices, could eventually reduce demand for housing.
To calculate average mortgage rates, Freddie Mac, the Federal Home Loan Mortgage Corp., surveys lenders across the country between Monday and Wednesday 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 unchanged this week at 0.5 point. The fee on 15-year loans also remained at 0.5 point.
-- The Associated Press
Dollar General's 3Q earnings slide 7%
GOODLETTSVILLE, Tenn. -- Dollar General put up weak earnings numbers for the third quarter in an environment that has largely favored bargain stores, with so many people still looking to cut costs where they can.
The Goodlettsville, Tenn.-based retailer cited lower food prices and a cut in food-stamp benefits in several states that forced low-income customers to trim spending.
Almost two dozen states have altered the Supplemental Nutrition Assistance Program, giving a smaller pool of people access to assistance. Dollar General has a strong presence in many of the states involved in the cutbacks.
Profits fell 7 percent and comparable-store sales, a closely watched barometer in the retail industry, fell as foot traffic in Dollar General stores faded.
Industry analysts had expected a slight increase in same-store sales, but they slipped 0.1 percent during the quarter.
Net income fell to $235.3 million, or 84 cents per share, from $253.3 million, or 86 cents per share, in the same quarter a year ago. Revenue rose 5 percent to $5.32 billion.
Shares of Dollar General Corp. fell $4.97 to close Thursday at $73.48.
-- The Associated Press
Ads pulled, Breitbart says shun Kellogg
Breitbart News urged its readers Thursday to boycott Kellogg Co. after the cereal-maker stopped advertising on the news site, whose former chairman is a top adviser to President-elect Donald Trump.
Breitbart lashed back at the company after a statement that Kellogg wouldn't put ads on sites that "aren't aligned with our values." Breitbart Chief Executive Officer Larry Solov said the move was "un-American."
"The only sensible response is to join together and boycott Kellogg's products in protest," he said in a Breitbart story.
Breitbart has become a minefield for brands in recent weeks, with critics lining up on both sides of the political aisle. Before Kellogg abandoned the site, activists attacked the cereal brand for advertising on Breitbart, saying its content espouses racist and anti-Semitic views. A screen shot showing an advertisement for Kellogg's Frosted Mini Wheats was part of an online campaign to get marketers to sever ties with the news organization.
Other brands, including Allstate and Warby Parker, have pulled back from Breitbart. BMW said on Wednesday that it too wouldn't be running targeted ads on the site.
-- Bloomberg News
Canada 'pot' merger valued at $321M
Canopy Growth Corp., the largest company in Canada's rapidly developing marijuana industry, agreed to buy competitor Mettrum Health Corp. for about $321 million to expand production as the government moves toward legalization.
The all-stock deal values Mettrum at $6.32 a share, the companies said Thursday in a statement, representing a 42 percent premium to Wednesday's closing price.
Shares of marijuana companies rose in Toronto trading, extending huge gains this year, with Canopy's shares quadrupling. Canada's plan to legalize recreational use in 2017 has attracted a wave of capital in anticipation of billions of dollars of new revenue.
Expectations were further heightened on Wednesday after the country's Task Force on Marijuana Legalization and Regulation delivered a report to the government on how the drug should be legalized and regulated. The group said its recommendations will be made public in mid-December. The market value of Canada's six largest marijuana companies has swollen to more than $2.7 billion.
-- Bloomberg News
Business on 12/02/2016