UPI NewsTrack Business

U.S. markets close with modest gains

NEW YORK, Sept. 8 (UPI) -- U.S. stocks held onto modest gains Wednesday, despite losses in Japan and continued concern over the health of banks in Europe.

The Bank of Japan's efforts to devalue the yen have done little to stop the yen from appreciating, which puts a crimp in Japan's critical export businesses. Stocks in Japan fell for the second consecutive session Wednesday as the yen hovered close to a 15-year high against the U.S. dollar.

By close of trading on Wall Street, the Dow Jones industrial average gained 46.32 points, 0.45 percent, to 10,387.01. The Standard & Poor's 500 index added 7.03 points, 0.64 percent, to 1,098.87. The Nasdaq composite index rose 0.9 percent, 19.98 points, to 2,228.87.

On the New York Stock Exchange, 2,082 stocks advanced and 896 declined on a volume of 3.9 billion shares traded.

The benchmark 10-year treasury note fell 16/32 to yield 2.654 percent.

The euro rose to $1.2719 from Wednesday's $1.2692. Against the yen, the dollar fell to 83.85 yen from Wednesday's 83.75 yen.

In Japan, the Nikkei 225 index lost 2.18 percent, 201.40, to 9,024.60.

In Britain, the FTSE 100 index rose 0.41 percent, 21.92, to 5,429.74.

Fed's Beige Book documents recovery stall

WASHINGTON, Sept. 8 (UPI) -- The U.S. Federal Reserve said Wednesday the economic recovery showed "widespread signs" of slowing down, yet positive signs remained.

In the most recent of eight annual Beige Book reports, the nation's 12 Reserve Bank districts reported "continued growth in national economic activity … but with widespread signs of a deceleration compared with preceding periods."

The Fed said five western districts, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco, showed "economic growth at a modest pace." Boston and Cleveland also reported some growth, while eastern districts, New York, Philadelphia, Richmond, Atlanta and Chicago reported "mixed conditions or deceleration."

The Fed said manufacturing continued to grow, albeit at a slower pace than in recent reports and consumer spending "appeared to increase on balance despite continued consumer caution."

Home sales slowed, however, "prompting" a continued decline in the construction sector.

With unemployment at 9.6 percent, "wage pressures … were limited," the central bank said. Inflation pressure, at the same time, was "quite limited for most categories of goods and services, despite higher prices for selected commodities."

Harley-Davidson workers face grim choices

MILWAUKEE, Sept. 8 (UPI) -- Harley-Davidson Inc.'s union workers are facing a contract vote that would lose jobs either way, but more so if the firm decides to leave Wisconsin.

A spokesman for Harley-Davidson, Bob Klein, said 200 positions will be eliminated, whether or not members of the United Steelworkers of America approve of a contract by Sept. 13. However, if members vote no on the deal, which includes allowing the company to hire "casual," non-union employees at about half the pay of union workers, Harley-Davidson could continue to look for new locations for their production facilities.

With a contract approved, the company has agreed to stop looking for new locations, The Milwaukee Journal Sentinel reported Wednesday.

Union workers also face higher healthcare costs, an eventual cut in vacation time and a wage freeze for many employees for the first six years of the contract. Wages could increase after that, based on the area's prevailing wages, the newspaper said.

By allowing for casual hires, the contract allows Harley-Davidson "to replace some senior employees with people who have no bargaining rights and are paid a lot less," said Marquette University associate professor of business management Cheryl Maranto.

John Heywood, director of a human resources and labor relations graduate program at the University of Wisconsin-Milwaukee said the automotive industry set down "very clear" options, which included trading in unionized facilities in the north for "Southern, non-union plants."

"I would emphasize that the alternative of keeping things the way they are is really not in the cards," he said. "It's always a question of what is realistic."

Stimulus grants hit personnel bottleneck

WASHINGTON, Sept. 8 (UPI) -- The chairman of the federal board overseeing $862 billion in stimulus spending said the government lacked the personnel to hand out the funding.

Recovery Act Transparency and Accountability Board Chairman Earl Devaney said, "it's a wake up call," concerning the 144 percent increase in funds for government contracts comparing 2001 to 2008 that was concurrent with a 12 percent rise in contracting staff, USA Today reported Wednesday.

At various government departments, including the Energy Department, the Federal Emergency Management Agency, the Small Business Administration and others, grant funding is failing to make it out the door, because staff is not available to review and approve contracts.

Inspector General Gregory Friedman said the Energy Department had trouble finding staff members due to a run on the market. "Hiring new staff proved difficult, as government-wide demand for personnel such as contract specialists and project officers increased largely due to the Recovery Act," he said.

Energy Department Deputy Inspector General Rick Hass said the problem spread to state capitals, as well.

"Some of the states we went to early on, we couldn't schedule visits because their folks were on furlough."

"Even though the federal money was flowing, there was no one there to manage it," he said.