Business news in brief

CEO out at Russian aluminum-maker

MOSCOW -- Russian aluminum-maker Rusal says its chief executive officer and seven board members have quit, a move that comes as the company struggles to survive U.S. sanctions.

U.S. has hit Rusal and its major shareholder, billionaire Oleg Deripaska, with sanctions cutting the company off from international financial institutions and spooking international customers. The penalties were part of an array of measures that targeted Deripaska and other tycoons close to the Kremlin.

The U.S. authorities have extended a deadline for dealings with Rusal and indicated that the sanctions could be lifted if Deripaska surrenders control. Rusal's move Thursday represented an attempt to persuade the U.S. to roll back the sanctions.

Deripaska already agreed to cut his stake in EN+, a holding company that controls Rusal, and resign from the company's board.

-- The Associated Press

Jobless-aid claims rise to 7-week high

Filings for U.S. unemployment benefits unexpectedly rose to a seven-week high while remaining consistent with a tight job market, Labor Department figures showed Thursday.

Jobless claims increased by 11,000 to 234,000. Continuing claims rose by 29,000 to 1.74 million in the week that ended May 12 (data reported with one-week lag). The four-week average of initial claims, a less volatile measure than the weekly figure, rose to 219,750 from the previous week's 213,500.

Unemployment-benefits applications below 300,000 are generally considered consistent with a healthy labor market, and the latest tally still isn't far from the 48-year low of 209,000 reached in April.

The claims figures, which tend to be subject to swings, have been on a declining trend as a widespread shortage of qualified workers spurs employers to retain staff while offering more perks to attract new ones.

The May jobs report due next week is projected to show payrolls expanded by close to 200,000 while the unemployment rate held at April's 3.9 percent level, which was the lowest since December 2000.

-- Bloomberg News

Long-term mortgage rates edge higher

WASHINGTON -- Long-term U.S. mortgage rates rose this week, continuing at their highest levels in seven years amid the peak home-buying season.

Mortgage buyer Freddie Mac said Thursday that the average rate on 30-year, fixed-rate mortgages was 4.66 percent, up from 4.61 percent last week. Pushing toward the significant 5 percent level, the new average benchmark rate was the highest since May 5, 2011. By contrast, the 30-year rate averaged 3.95 percent a year ago.

The average rate on 15-year, fixed-rate loans increased to 4.15 percent from 4.08 percent last week.

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. The fees on 30-year and 15-year fixed-rate mortgages were both unchanged at 0.4 percent.

The average rate for five-year adjustable-rate mortgages rose to 3.87 percent from 3.82 percent last week. The fee remained at 0.3 percent.

-- The Associated Press

Existing-home sales down 2.5% in April

WASHINGTON -- U.S. sales of existing homes tumbled 2.5 percent in April, with the costs of buying a home jumping and would-be buyers facing a persistent shortage of properties on the market.

The National Association of Realtors said Thursday that homes sold last month at a seasonally adjusted annual pace of 5.46 million, down from 5.60 million in February. Home sales have dropped 1.4 percent over the past year, largely because the number of sales listings has declined 6.3 percent.

The relatively healthy job market has bolstered demand to purchase homes. But the inventory shortage, rising prices and higher mortgage costs are weighing on the real-estate market.

The dearth of homes for sale and climbing mortgage rates have amplified the competition for buying a home. Homes lasted a median of just 26 days on the market in April, down from 39 days a year ago. Buyers are eager to close sales before higher borrowing costs further erode the affordability of their homes.

With supply levels so low, the median sales price has risen 5.3 percent from a year ago to $257,900.

Home sales in April fell in the Northeast, South and West. Sales were unchanged in the Midwest.

-- The Associated Press

Talc-powder firm hit with $25.7M verdict

LOS ANGELES -- A California jury delivered a $25.7 million verdict against Johnson & Johnson in a lawsuit brought by a woman who claimed she developed cancer by using the company's talc-based baby powder.

Jurors in Los Angeles recommended $4 million in punitive damages Thursday after finding the company acted with malice, oppression or fraud.

A day earlier, the panel called for $21.7 million in compensatory damages for plaintiff Joanne Anderson, who suffers from mesothelioma, a lung cancer linked to asbestos exposure.

Johnson & Johnson was assigned 67 percent of the compensation payout, with the rest distributed among other defendants.

Johnson & Johnson said it will appeal.

"We will continue to defend the safety of our product because it does not contain asbestos or cause mesothelioma," Johnson & Johnson said in statement.

Anderson, 66, claimed Johnson & Johnson failed to adequately warn consumers that its powder contains asbestos and could cause cancer.

Last year, a judge in Los Angeles tossed out a $417 million jury award to a woman who claimed she developed ovarian cancer by using Johnson & Johnson baby powder for feminine hygiene.

-- The Associated Press

Business on 05/25/2018

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