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Springleaf shares rises after $336.7M IPO

Written By Unknown on Rabu, 16 Oktober 2013 | 23.14

NEW YORK — Shares of Springleaf Holdings jumped Wednesday morning after the lender expanded its initial public offering, selling $336.7 million in stock.

Springleaf expanded its IPO to 21 million shares from 20 million and said the offering priced at $16 per share, in line with its estimates.

The company's shares gained $1.70, or 10 percent, to $17.70 in morning trading.

The stock is now trading on the New York Stock Exchange under the ticker symbol "LEAF." Springfield said the underwriters of the IPO will have an option to buy 3.2 million more shares to cover over-allotments.

Springleaf Holdings Inc. provides non-prime consumer loans through a network of 834 offices and online. It is based in Evansville, Ind.


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Canada: EU trade deal to be completed "soon"

TORONTO — Canada's prime minister says his country will "soon" complete negotiations on a free trade deal with the European Union.

Prime Minister Stephen Harper posted the remark on his Twitter account Wednesday ahead of a speech in Parliament that sets forth the government's agenda. The prime minister's office confirmed the remarks are authentic.

Harper has long said a deal was close, but an official in his office says further progress has been made.

Harper has said that a free trade deal between his country and the European Union could help the EU establish a beachhead as they embark on separate free trade talks with the U.S.

The prime minister hopes to ink a deal in an attempt to diversify Canada's trade. The U.S. is Canada's largest trading partner.


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Buffett says allowing US default would be idiocy

OMAHA, Neb. — Billionaire Warren Buffett said Wednesday it would be idiocy for the nation's leaders to allow the United States to default on its bills.

Buffett is a renowned investor who leads the Berkshire Hathaway conglomerate. He appeared Wednesday on CNBC.

Buffett said he thinks it would be absurd for American politicians to do anything to damage the country's reputation for paying its bills that has been established over the past 237 years.

"I don't think it will happen, but if it does happen, it's a pure act of idiocy," Buffett said about the possibility of default.

Congressional leaders were still working Wednesday morning on a deal to end the partial government shutdown and prevent default. Buffett said both political parties should agree not to use the debt limit as a bargaining chip in the future because it is "a political weapon of mass destruction."

"Credit worthiness is like virginity, it can be preserved but not restored very easily, so it is crazy to play around with it," Buffett said on CNBC.

But Buffett said he hasn't changed Berkshire's spending because of the budget battle, and it didn't factor in his decision to complete a $1.1 billion acquisition.

Berkshire said Wednesday it will buy the beverage dispenser business from Britain's IMI PLC on behalf of its Marmon Group subsidiary.

"I wouldn't have changed the price a penny based on what's happened," Buffett said.

The deal is relatively small by Berkshire's standards. The company spent $12.25 billion earlier this year to acquire half of ketchup maker H.J. Heinz Co. in a $23.3 billion deal. Buffett said Wednesday that another similar-sized deal recently got away from Berkshire.

Buffett also said he hasn't yet seen an effect on consumer spending in the reports he gets from Berkshire subsidiaries like its furniture and jewelry stores, but that would change if the government defaults.

Buffett said he hasn't sold off any of Berkshire's short-term treasury bills because of the budget battle. He said he's not worried about the government paying those.

Berkshire Hathaway Inc. owns about 80 subsidiaries, including clothing, brick, carpet and paint firms. Its insurance and utility businesses typically account for more than half of the company's net income. It also has major investments in such companies as Coca-Cola Co. and Wells Fargo & Co.

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Online:

Berkshire Hathaway Inc.: www.berkshirehathaway.com

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Follow Josh Funk at www.twitter.com/funkwrite


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GM boosts prices as pickup truck battle rages

DETROIT — General Motors is adding a twist to the fight for supremacy in the red-hot U.S. pickup truck market: It's raising prices.

GM is adding almost $2,100 to the sticker price of the base 2014 Chevrolet Silverado. That's 8.5 percent above the price when the truck hit showrooms in the spring. Other versions of the Silverado, as well as the GMC Sierra, will see similar percentage increases.

Raising prices sounds like an odd way to boost sales. But industry analysts suspect it's a marketing ploy. They expect GM to raise incentives starting next month so dealers can advertise big discounts. Customers will feel they're getting a deal — whether they do or not depends on the size of the discount.

The move comes after GM's pickup sales fell 8 percent in September while its two biggest competitors saw increases. Sales of Ford's F-Series, the best-selling pickups in the U.S., rose 10 percent and Chrysler's Ram posted an 8 percent increase. The Detroit Three dominate U.S. full-size pickup truck sales with 90 percent of the market. The Toyota Tundra and Nissan Titan make up the remainder.

GM didn't offer the sweet deals Ford and Chrysler did last month, said Jesse Toprak, an analyst for the TrueCar.com auto pricing website. Raising prices and then adding incentives is common in the business. And truck buyers especially like to get deals, Toprak said.

"This whole change in pricing strategy for trucks at GM is really meant predominantly as a sales closing tactic for dealerships," he said. The increase covers trucks built after Oct. 7, so pickups now on dealer lots won't be affected.

GM officials may also be counting on a recent change in buying habits: Consumers now pay less attention to the sticker price. Toprak says most buyers now research their cars and trucks online before buying. Many third-party auto websites suggest prices that people should pay that are below the sticker price, he said.

"Savvy customers know how to look beyond this and go to net pricing," he said.

In May, Nissan Motor Co. took the opposite strategy. The Japanese automaker cut prices and incentives so its cars showed up in Internet searches done by price-sensitive buyers. Nissan sales are up 13 percent since then.

GM spokesman Jim Cain wouldn't comment on whether the company would increase discounts when its current incentives expire Oct. 31. But he said that incentives do give dealers flexibility to promote sales, allowing cash-strapped customers to use rebates as down payments.

"That does help customers purchase a vehicle from time to time if they've got no money down," said Tom Kool, who runs a small Chevrolet dealership in Sturgis, Mich., just north of the Indiana border.

Last month, GM spent about 18 percent less on pickup discounts than a year earlier — an average of $3,430 on the Silverado and $3,339 on the Sierra, according to TrueCar. Ford, which has an older truck with a lower base price, spent about $100 more discounting the F-150, while Chrysler spent nearly $700 more than GM. Both Chrysler and Ford offered bigger discounts on outgoing 2013 models last month, while GM essentially sold out of last year's models during the summer.

Under the increases, the base sticker price on the Silverado will rise from $24,585 to $26,670, including shipping, according to GM's website. A base crew cab will go from $33,195 to $35,095.

When the trucks were introduced, GM kept sticker prices the same as 2013 models, Cain said. The increase has been planned for a long time, he said.

The increases raise the Silverado's sticker price to $1,780 above the Ram and $1,605 above the F-150. Cain says GM can command higher prices because it has the newest truck in the market with more features, including increased gas mileage.


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Review: Button location sets LG's G2 apart

SEOUL, South Korea — The G2 and the G Pad 8.3, the flagship smartphone and tablet from LG Electronics Inc., are great mobile devices that have fantastic screens, top-end cameras and ample processing power.

But making an impressive device is not enough to stand apart from the crowd in the ultra-competitive mobile phone market, which probably pushed LG to make some bold design decisions in a bid to differentiate its G series from Samsung's Galaxy line and Apple's iPad mini.

For the G2, which was released last month in the U.S., LG moved the power and volume controls to the back of the phone. For the G Pad, which goes on sale in the U.S. next week, LG added a full HD screen, a rarity in 8-inch tablet computers.

While these design choices set the G2 and the G Pad apart from 'me too' devices trying to catch up with Samsung and Apple, they might also limit their appeal.

Not everyone will be pleased with having to change the basic habits of smartphone operation. They will scratch their heads looking for those buttons just like I did. The full HD screen display makes the G Pad a couple of hundred dollars more expensive than other 8-inch tablets.

It took a couple of days before my index finger ceased pressing a volume key when I intended to press a power key. But after that, I realized having a power button on the back makes it easier to use a big handset with one hand. The G2 has a 5.2-inch screen.

LG came up with a double-tap gesture to activate the phone. I found it easier and quicker than pressing a home button and then sliding to unlock as with my iPhone 4S. This double-tap to start also applies to the G Pad.

LG removed the physical home button on the front for the G2 and the G Pad. Instead, virtual buttons for back, home and menu actions appear when the screen is activated. I preferred these virtual buttons over physical ones because I could touch them with the same gesture and pressure I applied to the touchscreen. One downside of Samsung's Galaxy devices is that the touchscreen and the three buttons for home, back and menu options all need a different level of pressure to be activated.

LG's virtual buttons rotated with the screen when I tilted the G2 or the G Pad to a landscape mode. That made them easy to access when I watched a movie in the landscape mode with the G Pad. Removing the physical home button also gives the screen more space in the phone.

But the design elements that make the G2 and the G Pad different from rivals stopped there.

LG has packed the G2 with other features but many of them were no better than what is already available. For example, a feature called Task Slider allows multitasking by swiping the screen with three fingers to hide or reopen an application. But Android users are familiar with an extended press of the home button to bring up a list of applications in use, which is quick and more intuitive.

The G2 will be a great choice but only for people who don't mind re-learning how to use a smartphone. In the U.S., the G2 smartphone is available at $200 with a two-year contract or $600 without a contract from a carrier.

For people who are willing to pay a premium for the 8.3-inch tablet's full HD screen, the G Pad will also be a decent choice. While the U.S. price is yet to be announced, in South Korea the tablet is offered at 550,000 won ($515).

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Follow Youkyung Lee on Twitter: www.twitter.com/YKLeeAP


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Panel to vote on rules for Washington pot industry

SEATTLE — After nearly a year of research, planning and public hearings, Washington state is poised to approve the rules for its new legal marijuana industry.

The rules will dictate everything from the security at and size of licensed marijuana gardens, to how many pot stores can open in cities across the state.

The three-member Liquor Control Board is expected to vote to pass the rules Wednesday.

Washington and Colorado voted last year to legalize marijuana and allow its sale for recreational use at state-licensed stores. In Washington, supporters hope the sale of taxed pot to adults over 21 might bring the state tens or hundreds of millions of dollars.

The proposed rules allow up to 334 pot stores to open in Washington. The stores are expected to open by next summer.

Colorado approved its marijuana industry rules last month.

The federal government announced earlier this year that it would not sue Washington or Colorado over plans to tax and regulate marijuana sales for adults over 21.

The Department of Justice told the states it had eight priorities it wants them to address if they regulate pot, including keeping marijuana off the black market and keeping it away from kids

Washington's legal marijuana law already includes zoning requirements keeping the businesses away from schools, parks and playgrounds.


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Need motivation? There's an app for that

WASHINGTON — Ever suspect you do more housework than your spouse? Or that certain tasks at work raise your blood pressure? Maybe you wonder why you're sneezing more lately, or if carbs are really what is making you tired after lunch?

Turns out, there's an app or gadget to test all of that. Advancements in wearable body sensors, mobile applications and other gadgets mean that nearly everything we do can be captured, logged and analyzed. And everyday consumers are jumping at the chance to conduct their own experiments — tracking sleep, caffeine intake, kids' studying habits, household chores, even whether a baby is nursing more frequently on Mom's left breast versus her right.

"I don't know if I'd use the word 'obsessed,'" said Ernesto Ramirez, a self-tracking devotee who helped to organize a two-day conference on the subject last week in San Francisco. Speakers at past "Quantified Self" conferences have included a man who developed his own app to see if he could walk every street in Manhattan and a dad who used trackers on his kids to monitor chores.

"I think there's an overall trend toward curiosity and proving knowledge of one's self in the world," Ramirez said.

When Tim Davis of Beaver, Pa., tipped the scales at 318 pounds two years ago, he bought a Fitbit gadget to track his physical activity and the Lose It! app on his phone to track calories. He bought a Wi-Fi-enabled scale that published his daily weight on his Twitter feed and turned to other apps to track his pulse, blood pressure, daily moods and medications. At one point, Davis said he was using 15 different apps and gadgets, which he said helped him drop 64 pounds by that following year.

"It's the second-by-second, minute-by-minute changes that really did it," said Davis, 39. "If you're the type of person who likes gadgets and devices and to collect metrics, you're also the kind of person who does not like gaps in data."

A pediatrician in Kansas City, Mo., Natasha Bugert, said apps that track newborn feedings and sleep patterns have become wildly popular among her patients and she now encourages parents to send her the data before their appointments.

"In the first few weeks, parents are so tired. It's really hard for them to give you objective data," Bugert said.

Public health advocates and researchers say tracking technology could be used to encourage people to use less gasoline, conserve water or drive slower by giving them real-time feedback on their daily habits. It also could expose causes of medical conditions that baffle doctors.

HopeLab, based in Redwood, Calif., is one nonprofit looking to harness technology to improve health. It has developed a $30 movement-tracking device for kids called a "Zamzee," and a website that rewards activity with online points and badges.

HopeLab has developed video games for young cancer patients that lets them pretend to blast cancer cells. Researchers there say their studies have shown that the game improved patients' moods and encouraged them to stick with treatment.

"When you give people a sense of autonomy, a sense of agency, that can actually be very transformative to their health," said HopeLab spokesman Richard Tate.

Ramirez said he thinks the next step will be embedding sensors in nearly everything a person encounters throughout the day and linking that information together. Think of a car that won't start if you've consumed too much alcohol or a light bulb that changes colors when it's time to go to bed.

Industry watchers say these kinds of data-driven apps are finding their place in a market that has struggled to profit from advertising.

Raj Aggarwal, CEO of Localytics, a Boston-based analytics firm, says mobile games are still by far the most popular among consumers, but their fan base can be fickle. If a data-logging app is useful enough, it can convince consumers that they should pay for upgraded subscriptions or premium services that earn the developers money.

One mobile app called "GymPact" has found a novel way of making money off its consumers' data. The app lets people bet against one another as to whether they will go to the gym. The non-exercisers have to pay the exercisers, with GymPact taking a cut.

But what becomes of all this data?

In theory, most apps let you delete your information. But programs such as the FitBit reserve the right to keep and analyze your information, and possibly pass along the data to third parties to make sure the program works as promised. What would happen if these tech companies decide to package and sell all that data? Could a person ever be denied a job or life insurance, for example, if their mobile app showed they tried but never quit smoking?

Poorly encrypted data or lax privacy controls could become a problem, too.

In 2011, some FitBit users were surprised to see their sexual activity logs pop up in Google searches; that's something FitBit's privacy settings allowed at the time unless a person knew to opt out. FitBit has since modified its policy to keep hidden more sensitive data unless someone configures his or her account specifically to share it.

As for Davis and his fight to lose weight, he said his biggest mistake was letting his FitBit gadget lose its charge last year. Without the continual feedback, and perhaps a mobile app to remind him, Davis' motivation waned and his weight climbed to 292 pounds.

But Davis insists he won't stay that way for long. He has persuaded his family members and coworkers to wear self-measuring devices, sparking a friendly rivalry.

"Keep an eye on me," he said of the months ahead. "I think you'll see a difference."

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Follow Anne Flaherty on Twitter at https://twitter.com/AnneKFlaherty


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Police stop anti-fracking protest in Romania

BUCHAREST, Romania — Hundreds of Romanians opposed to shale gas extraction in their village have scuffled with police at an exploration site where energy giant Chevron plans to start drilling.

The protesters blocked a road and made a human chain in a field where Chevron plans to its operation soon, but police intervened and cleared them from the area Wednesday.

Police spokeswoman Mihaela Straub said no arrests were made in the village of Pungesti, 155 miles (250 kilometers) northeast of Bucharest, the capital.

Local environmentalists have said pumping water and chemicals at high pressure into deep rock formations to free oil and gas could contaminate ground water supplies.

But Chevron has permits to prospect for shale gas in Pungesti, two other villages, and on Romania's Black Sea coast.


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Veeva Systems stock soars on debut

NEW YORK — Shares of Veeva Systems Inc. are soaring in their trading debut Wednesday after the cloud-based software company raised about $261 million in its initial public offering.

Veeva Systems, which is based in Pleasanton, Calif., makes software for pharmaceutical companies.

The company priced its IPO at $20 per share. That's above the $16 to $18 per share it previously expected.

The stock is up $16.21, or 81 percent, to $36.21.

Veeva Systems did not specify how it would use the money it raises, but said it may use it for acquisitions or investing in other businesses. Its shares are trading on the New York Stock Exchange under the symbol "VEEV."


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Spanish company Fagor seeks bankruptcy protection

MADRID — Spanish appliance maker Fagor Electrodomesticos has filed for bankruptcy protection after years of economic crisis caused a dramatic drop in sales.

The company, part of the Basque region's Mondragon cooperative, said Wednesday it was unable to find financing to pay off an unspecified amount of debt.

Fagor has nearly 6,000 employees and estimates sales have dropped by 37 percent since 2007, just before Spain's economic crisis began with the collapse of the country's real estate sector.

Spain has been in recession for most of the last four years and has an unemployment rate of 26.3 percent.

Fagor, which claims to be Europe's fifth-largest appliance maker, has four months to try to reach an agreement with creditors.


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