IN BRIEF
New Hard Rock Café planned for Strip
Las Vegas’ second Hard Rock Café is scheduled to open on the Strip in summer 2009, the Orlando, Fla.-based Hard Rock International announced Thursday.
The 41,000-square-foot, three-story cafe will be part of the Showcase mall expansion under construction north of MGM Grand.
The building is designed to have a 700-seat restaurant, live-concert venue and a memorabilia shop.
Hard Rock International is owned by the Seminole Indian Tribe of Florida through Seminole Hard Rock Entertainment.
The Hard Rock Hotel and adjacent café are owned separately by Morgans Hotel Group and has no affiliation with the new café.
NEW YORK
Greenback now on par with Canadian dollar
For the first time since Gerald Ford was president, the loonie can buy as much as the greenback.
The U.S. dollar’s recent decline against the Canadian dollar, the euro, and even the Indian rupee, means Americans will pay more for imports and trips to Paris, Rome, Bangalore and Toronto. It also may drive overseas demand for U.S. goods and help raise profits at U.S. multinational corporations.
The U.S. dollar reached 1-to-1 parity against the Canadian dollar Thursday for the first time since November 1976. That means one Canadian dollar now buys one U.S. dollar, so a bottle of maple syrup could cost an American as much in Toronto as it does in New York.
DETROIT
Union, General Motors discussing health care
Negotiators for General Motors Corp. and the United Auto Workers, trying to craft a new contract, are still discussing the automaker’s proposal to pay the union to form a trust and take over the company’s huge retiree health care obligation, according to two people who have been briefed on the talks.
The people, who spoke on condition of anonymity because the talks are private, said noneconomic issues, which include grievance procedures, absenteeism and other items, had been settled.
The discussions about the trust took place even though UAW President Ron Gettelfinger on Tuesday rejected a GM offer on the trust, called a voluntary employees beneficiary association, a person briefed on the talks said.
MEMPHIS, Tenn.
FedEx earnings rise by 4 percent in quarter
FedEx Corp.’s earnings rose 4 percent in the first quarter of its 2008 fiscal year, beating Wall Street’s expectations on strong international growth. However, the company lowered its outlook for the full year, blaming economic uncertainty from the downturn in the housing market.
FedEx earned $494 million, or $1.58 per share, compared with $475 million, or $1.53 per share, a year-ago earlier.
Revenue rose 8 percent to $9.2 billion.
Analysts polled by Thomson Financial were expecting a profit of $1.54 per share on revenue of $9.07 billion.
Allegiant Travel says finance chief resigns
Allegiant Travel Co., the parent company of Las Vegas-based low-fare flier Allegiant Airlines, said Chief Financial Officer Linda Marvin resigned to spend more time with her family and focus on personal interests.
The 45-year-old Marvin will remain CFO through Sept. 30. She will serve the company in a transitional role through Dec. 31.
Allegiant Travel shares fell 27 cents, or 0.9 percent, Thursday to close at $29.77 on the Nasdaq National Market.
Morgans Hotel Group president steps down
The president and chief executive officer of Morgans Hotel Group, who guided the New York-based boutique operator into the Las Vegas market, resigned Thursday by “mutual agreement with the company,” a company statement said.
The executive, Ed Sheetz, was resigning to “address personal issues,” the statement said.
Morgans said Thursday that plans in place for Las Vegas will proceed.
Scheetz, who became president and CEO in July 2005, was instrumental in the $770 million purchase of the Hard Rock Hotel in February.
Sheetz also helped sign the $91.5 million deal in January 2006 to enter a 50-50 partnership with Boyd Gaming Corp. for two luxury hotels as part of the $4.8 billion Echelon.
Morgans Hotel Group shares rose 21 cents, or 1.05 percent, Thursday to close at $20.20 on the Nasdaq National Market.
WASHINGTON
Interest rates rise on 30-year mortgages
Rates on 30-year mortgages, after dropping to their lowest point in four months, edged up this week.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.34 percent this week, up slightly from last week’s 6.31 percent, which had been the lowest level since May 17. This week’s 6.34 percent rate is the second-lowest since mid-May.
A year ago, 30-year mortgages stood at 6.40 percent, 15-year mortgages were at 6.06 percent.
NEW YORK
Inflation worries spark sell-off of Treasurys
Long-term Treasurys endured a third straight brutal sell-off Thursday, hit by worries that inflation will accelerate.
The benchmark 10-year Treasury note closed a full point lower at 100.63 with a yield of 4.67 percent, up from 4.52 percent at Wednesday’s close. Heavy selling following the U.S. rate cuts has driven the yield on the 10-year note 4.5 percent higher since the rate cut. Prices and yields move in opposite directions.
