World stocks up on hopes Chinese slowdown is mild

LONDON — World stock markets rose Wednesday after Chinese economic figures showed the slowdown in the first quarter was less severe than expected.

Investors took heart from the fact that the world's second-largest economy expanded 7.4 percent from a year earlier. While the growth was the slowest since the third quarter of 2012, it was better than the average forecast of 7.3 percent growth.

Also helping were U.S. data showing an increase in industrial output and home building in March. Among corporate news, Yahoo saw its shares jump 5 percent after it reported a strong gain in its Asian operations. That helped offset disappointment over weak earnings at Bank of America.

Germany's DAX rose 1.6 percent to close at 9,317.82 and France's CAC 40 gained 1.4 percent to 4,405.66. Britain's FTSE 100 climbed 0.7 percent to 6,584.17.

On Wall Street, the Dow Jones industrial average was up 0.6 percent at 16,362.92 while the S&P 500 was up 0.6 percent at 1,853.48.

Earlier, In Asia, Japanese stocks were still in recovery mode after last week's global rout in technology shares.

The Nikkei 225 index jumped 3 percent to 14,417.68 as a weaker yen boosted exporter stocks and Softbank Corp. shares surged 8.5 percent after Chinese e-commerce Alibaba Group Holding Co., in which it holds a 37 percent stake, reported strong earnings.

Hong Kong's Hang Seng index gained 0.1 percent to 22,696.01 and South Korea's Kospi was steady at 1,992.21. The Shanghai Composite added 0.2 percent.

Markets also rose in Southeast Asia, Australia and New Zealand, but fell in India.

The price of oil was volatile as Ukraine took action against pro-Russian separatists in its east. Having traded higher earlier, the benchmark U.S. crude contract for May delivery was down 27 cents to $103.48 a barrel in electronic trading on the New York Mercantile Exchange.

In currencies, the dollar was up 0.4 percent at 102.30 yen while the euro was flat at $1.3817.

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Did Comcast raise cable-TV rates 68% in the past four years? Not exactly

The eye-popping claim certainly got some headline play: Comcast raised basic-cable rates 68% from 2009-13, while Time Warner Cable -- the target of Comcast's proposed $45 billion acquisition -- actually reduced them by 2.5% over the same time period.

That's according to an analysis of rates for several providers conducted by Free Press, a public-interest group that vehemently opposes the MSOs' combination. Cablevision basic rates climbed 47% over that time frame, while those for AT&T U-verse TV didn't increase at all.

"If the Obama administration signs off on the merger, you can bet your bottom dollar -- while you still have it -- that Comcast's vast market power will allow it to dictate prices no matter which company is your actual cable and Internet access provider," Free Press editor Amy Kronin wrote in a blog post Monday.

Comcast did not have a response to Free Press's claims by press time.

But there are some big caveats attached to the Free Press analysis of SNL Kagan data.

First, the organization's analysis looked only at data from individual markets for wireline providers: Boston for Comcast, Rochester, N.Y., for TW Cable, Chicago for AT&T's U-verse and Long Island for Cablevision.

Why did the study look only at those markets? In an email, Free Press research director Derek Turner said his choices were based on which markets had complete data for nonpromotional prices of basic and premium packages. Total video revenue per subscriber for all pay-TV providers is on the rise, he acknowledged, but Comcast "is near the top, so it's not as if Comcast over all its franchises is somehow a better company for consumers, which is the point of our original infographic," he wrote.

SEE ALSO: Comcast, TW Cable Execs Grilled By Skeptical Senators at Merger Hearing

Still, it's not clear how reflective the rate changes in those markets are for Comcast, Time Warner Cable or AT&T across the board.

Meanwhile, the term "basic cable" doesn't really mean "cable TV" at all -- it refers to the entry-level packages operators are required to offer that include broadcast networks, without pay channels like ESPN or Fox News.

For basic cable, the biggest factor in cost increases are retransmission-consent fees paid to broadcasters - which more than tripled from $758 million in 2009 to $3 billion in 2013, according to SNL Kagan. So in Boston, Comcast was apparently socked with considerably higher retrans fees than Time Warner Cable in Rochester, while AT&T appears to have locked in retrans rates in Chicago over that time period. (In citing the 11% price increase for Dish Network's "basic" service from 2009-13, Free Press used the satcaster's America's Top 120 rates -- which isn't an apples-to-apples comparison, as Dish doesn't offer a broadcast-only tier.)

In addition, basic-cable fee increases come off lower price points than expanded basic or other premium TV packages. The average monthly price of basic TV in 2012 was $20.55 for the industry at large, according to the FCC's 2013 video competition report.

Now, the Free Press analysis also compared price increases of "premium" TV packages. Here Comcast rates increased 21% from 2009-13, not too out of line with Time Warner Cable (+17%), Dish (+17%) and Cablevision (+15%), while AT&T rates rose 8%. But again, with the exception of Dish, those are specific to individual markets; the study didn't look at average increases across all subscribers.

Finally, the rates Free Press studied were for standalone TV services, whereas most cable and telco customers buy video in a bundle with broadband and/or phone service -- and operators offer discounts as an incentive for subscribers to take multiple services.

To be sure, pay-TV rates are indeed rising, and they will continue to for the foreseeable future. But they're increasing among all pay-TV providers, not just Comcast.

For its part, Comcast continues to insist that its takeover of Time Warner Cable won't result in higher consumer bills: "I will make one firm commitment that there is absolutely nothing in this transaction that will result in an increase in prices for Comcast customers," exec VP David L. Cohen said at a Senate hearing last week.

That carefully worded statement is not meant to imply that cable TV prices will decline. In fact, as Cohen told reporters when the deal was announced in February, "We're certainly not promising that customer bills are going to go down or even that they're going to increase less rapidly." Comcast blames programmers, of course, saying programming costs of Comcast, Time Warner Cable and Charter Communications have increased, on average, by 54% in the last five years.

Sure, Comcast may be the biggest, greediest cable company in the biz. It's worth noting that both Comcast and Time Warner Cable engage in the customer-unfriendly practice of charging a one-time fee of up to $6 to downgrade to a lower-priced TV package. That's just one of many things that go toward explaining why Comcast and Time Warner Cable rank near the bottom of the pay-TV industry in customer satisfaction, according to a survey by Consumers Union (although -- another caveat -- that group also is actively lobbying against the proposed deal). But claiming Comcast boosted cable TV prices 68% whereas TW Cable actually dropped them is misleading.

(C) 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC

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France targets welfare for big spending cuts

PARIS — France's prime minister has announced plans to cut 21 billion euros ($29 billion) from pensions, social care and health care as a part of a 50-billion-euro effort to rein in the country's debt and deficit.

Manuel Valls on Wednesday detailed the government plan to cut 10 billion euros from health care and 11 billion euros from pensions and social care by 2017, though he vowed to maintain the benefits for those with the lowest incomes.

The central government will have its spending cut by 18 billion euros, while local councils will see cuts worth 10 billion euros.

France's public spending accounts for about 57 percent of gross domestic product, one of the highest levels in the world.

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US home building up in March after frigid winter

WASHINGTON — U.S home construction rose moderately in March as builders resumed work at the end of a frigid winter. But applications for building permits slid, clouding the outlook for future construction.

Builders started work on 946,000 homes at a seasonally adjusted annual rate in March, up 2.8 percent from 920,000 in February, the Commerce Department said Wednesday. Construction of single-family homes rose 6 percent, more than offsetting a 3.1 percent drop in the construction of apartments, condominiums and town houses.

As the weather moderated, construction rose 30.7 percent in the Northeast and jumped 65.5 percent in the Midwest. But it fell 9.1 percent in the South and 4.5 percent in the West.

Applications for permits, a gauge of future activity, fell 2.4 percent to a seasonally adjusted annual rate of 990,000.

"The outcome is less dynamic than anticipated," Annalisa Piazza, an economist at Newedge Strategy, said in a research report.

Economists had expected housing starts to hit 970,000 last month. Piazza noted that housing construction in March was 5.9 percent less than a year earlier.

"It echoes several of the other reports we've seen of late which do show a spring snapback, but one not nearly as strong as once hoped," said Dan Greenhaus, chief strategist at BTIG.

Many analysts have been expecting an improving economy to lift the housing market, which has been recovering the past two years. But housing has struggled to maintain momentum. Rising prices and higher mortgage rates have deterred some home buyers. Others have had trouble qualifying for mortgages.

Builders complain of a shortage of workers and lots to build on.

U.S. homebuilders' confidence in the housing market rose modestly in April but remained at low levels for the third straight month, according to the National Association of Home Builders/Wells Fargo builder sentiment index, which came out Tuesday.

The index, which measures confidence in the single-family home market, edged up to 47 in April from 46 in March., Readings below 50 mean builders view sales conditions as poor. The index had been above 50 from June through January.

Still, the March gain in single-family home construction is encouraging. Every single-family home built creates three jobs and generates $90,000 in tax revenue, according to the homebuilders' group.

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Yahoo, PNC among early winners among US stocks

Stock indexes are opening higher after more U.S. companies reported solid earnings and some encouraging news about China's economy.

Yahoo soared 8 percent after the company said it was benefiting from its lucrative investments in Asia and that its advertising sales were recovering.

PNC Financial rose 1 percent after reporting earnings that were better than analysts were expecting.

The Standard & Poor's 500 index rose seven points, or 0.4 percent, to 1,850 in the first few minutes of trading Wednesday.

The Dow Jones industrial average gained 83 points, or 0.5 percent, to 16,346 and the Nasdaq rose 14 points, or 0.4 percent, to 4,047.

Markets rose in Asia and Europe after China reported that its economy slowed less than many had feared in the first quarter.

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Russian economy hit by Ukraine turmoil

MOSCOW — Russia's economy slowed sharply at the start of the year as the crisis in Ukraine spooked investors into pulling money out of the country. But with Russian President Vladimir Putin still enjoying high popularity ratings, the economic damage is not yet likely to soften his politics in the region, analysts say.

In the first official estimate of the Ukrainian turmoil's impact on growth, Economy Minister Alexei Ulyukayev said Wednesday the economy expanded just 0.8 percent in the first quarter from a year earlier — far short of the previous prediction of 2.5 percent. Compared with the previous quarter, the economy contracted 0.5 percent.

"The acute international situation of the past two months" and "serious capital flight" were to blame, Ulyukayev told parliament.

Russian markets have been rattled by the tensions with neighboring Ukraine, where Russia annexed the Black Sea region of Crimea last month. The main stock index tanked 10 percent in March, wiping out billions in market capitalization. In the first three months of 2014, the ruble lost 9 percent against the dollar, making imports more expensive, while spooked investors pulled about $70 billion out of the country — more than in all of 2013.

Among investors' chief concerns are that the U.S. and European Union might escalate their sanctions against Russia to affect trade, particularly in the valuable energy market. Europe is Russia's largest trading partner. It buys more than three-quarters of Russia's crude oil and natural gas exports, which fund about half the government budget.

So far, the U.S. and the EU sanctions have been limited to individual Russian politicians and businessmen close to the Kremlin. But the possibility of tougher sanctions has been enough to hinder investment, which dropped 4.8 percent in the first quarter, according to Ulyukayev.

And yet, experts say, Putin is unlikely to adopt a more conciliatory stance over Crimea or the rest of Ukraine, even if more sanctions were imposed.

"This will be the price that Putin will accept," said Maria Lipman, an analyst with the Moscow Carnegie Center.

Part of the reason he can do so is that his popularity ratings are high, said Liza Ermolenko, an economist with Capital Economics in London. That could change if the economic downturn translates to increased hardship for Russians, but that would require a more protracted drop.

The Ukrainian crisis is coming at a bad time for the Russian economy, which faces fundamental problems, the World Bank said in March. The growth rate in 2013 was the lowest in 13 years after a slump in 2009 caused by the global financial crisis.

The World Bank predicted the economy could shrink by a dramatic 1.8 percent this year if instability over Ukraine continues and Russia is hit with more Western sanctions.

Tensions have only increased in April, as NATO accused Russia of amassing troops on its border for a possible invasion of Ukraine and the authorities in Kiev say Russia is backing armed militants in the country's east, where pro-Russian activists have seized government buildings and police stations.

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Paul Weller's children win lawsuit over pictures

LONDON — The children of musician Paul Weller won a privacy lawsuit Wednesday over paparazzi pictures published on a newspaper website.

Lawyers for the former front man of The Jam and his family sued Associated Newspapers over images of daughter Dylan and twin sons John Paul and Bowie that appeared on its MailOnline site.

Dylan was 16 and the twins 10 months old when the pictures, taken during a shopping trip in Santa Monica, were published in 2012.Judge James Dingemans ruled that although publishing the pictures was legal in California, they "were published in circumstances where Dylan, Bowie and John Paul had a reasonable expectation of privacy" — a status protected in British human rights law.

He awarded a total of 10,000 pounds ($17,000) to the children.

Paul Weller told the High Court in London that the photographer was asked to stop but persisted, "taking photos of a very frightened 16-year-old holding her baby brother."

"What kind of person is that anyway?" he said.

MailOnline said it was "deeply disturbed" by the judgment and would appeal.

It said it was in competition with U.S-based websites protected by the First Amendment, and called the privacy ruling "a worrying development in our law, as it has conferred unfettered image rights on all the children."

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Ford to offer 50th anniversary Mustang

NEW YORK — Ford is celebrating the 50th anniversary of the Mustang with a limited-edition model and a display atop the Empire State Building.

At the New York International Auto Show on Wednesday, the company revealed the 50 Year Limited Edition. The company will only build 1,964 special cars, honoring the year when the Mustang first went on sale.

"If you don't like this car, you don't like cars," said Executive Chairman Bill Ford, whose first car was an electric green 1975 Mustang.

Earlier in the day, Bill Ford appeared with a bright yellow 2015 Mustang convertible on the 86th floor observation deck of the Empire State Building. It's the first time a car has been there since 1965, when Ford put a Mustang convertible there.

The car had to be broken into five pieces for the ride up the building's elevators and reassembled late at night, when the deck is closed to visitors. It will be on display until Friday.

The 50 Year Limited Edition models will come in one of the two colors of Ford's logo: white or blue. Buyers can choose a manual or automatic transmission.

There are special chrome highlights around the grille, windows and tail lights. The Limited Edition will also be the only 2015 Mustang GT with a faux gas cap badge on the rear, where the original cap sat.

Limited Edition cars will be among the first built when 2015 Mustang production begins later this year. Bill Ford said the company hasn't yet decided how to allocate them, or what the price will be. In 1964, the Mustang's starting price was $2,300.

Ford chose to mark the anniversary in New York because the Mustang was first shown here at the 1964 World's Fair.

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US stocks rise, extending gains into third day

Investors sent stock prices higher for a third day in a row Wednesday. Major U.S. indexes rose as more companies reported solid earnings and traders welcomed encouraging news about China's economy. Yahoo and Delta Air Lines were among the companies rising sharply in afternoon trading.

KEEPING SCORE: The Standard & Poor's 500 index rose 14 points, or 0.8 percent, to 1,857 as of 12:27 p.m. Eastern Time. The Dow Jones industrial average gained 129 points, or 0.8 percent, to 16,392. The Nasdaq added 40 points, or 1 percent, to 4,074. All three indexes are up for the week but are still down for the month after several days of choppy trading.

EYE ON EARNINGS: Investors are closely monitoring company earnings this week as they try to assess whether the negative impact that severe weather this winter had on many companies has begun to ease. Financial analysts expect first-quarter earnings for the S&P 500 will decline about 1.2 percent, according to S&P Capital IQ.

"We do think ... the market is focused on what seems to be a worst-case scenario not being realized," said Jim Russell, senior equity strategist at U.S. Bank Wealth Management. "Expectations are low enough where many companies will either meet or beat expectations."

YAHOO FOR ASIA: Yahoo jumped $2.30, or 6.7 percent, to $36.52. The Internet pioneer reported late Tuesday that it is making most of its money from its stakes in two Asian Internet companies, China's Alibaba Group and Yahoo Japan. That overshadowed a 20 percent drop in overall first-quarter earnings.

CHINESE GROWTH: The world's second-largest economy grew 7.4 percent from a year earlier in the January-March quarter, down from 7.7 percent in the previous quarter, China's government reported. The growth rate appeared strong enough to satisfy Chinese leaders who are trying to put the country on a more sustainable path without politically dangerous job losses.

FACTORIES HUMMING: The Federal Reserve said Wednesday that factory production rose 0.5 percent in March after a revised 1.4 percent surge in February. The gains over the past two months point to a rebound after a winter slowdown in January and December stalled growth across the economy, and are a sign of greater demand by businesses and consumers.

SECTOR WATCH: All 10 sectors in the S&P 500 index rose, led by companies that make basic materials. That's a bullish sign because those companies tend to prosper more than others when the economy is expanding and manufacturing and construction pick up speed, increasing demand for industrial materials like metals. Aluminum maker Alcoa rose 24 cents, or 1.8 percent, to $13.30 and Eastman Chemical rose $1.79, or 2.1 percent, to $88.04.

LITIGATION LETDOWN: Bank of America slumped after reporting a loss in the first quarter. The bank booked $6 billion in costs related to a previously disclosed legal settlement over its home loan lending practices. BofA fell 36 cents, or 2.2 percent, to $16.04.

TROUBLED TECH: Shares in several companies that make circuits for electronics or data storage took a beating Wednesday. Among the biggest decliners were Linear Technology, which fell $1.89, or 4 percent, to $45.25, and Analog Devices, which slid $1.06, or 2 percent, to $52.12. Microchip Technology shed 70 cents, or 1.5 percent, to $46.47.

CHILL ON THE TRACKS: Severe winter weather contributed to a 14 percent drop in CSX's first-quarter earnings, even as the railroad company's freight volume grew modestly. CSX executives expect modest profit growth for the year, but they also said the impact of the harsh winter will linger into the current quarter. CSX fell 69 cents, or 2.4 percent, to $27.60.

OVERSEAS: Germany's DAX rose 1.6 percent while France's CAC-40 rose 1.4 percent. The FTSE 100 index of leading British shares was down 0.6 percent. In Asia, Hong Kong's Hang Seng gained 0.1 percent. China's Shanghai Composite Index added 0.2 percent. The Nikkei 225 index jumped 3 percent.

TREASURYS: Bond prices fell. The yield on the 10-year Treasury note rose to 2.64 percent from 2.63 percent late Tuesday.

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Toyota Camry gets a top-to-bottom makeover

NEW YORK — Shaken by the advances of newer, sportier rivals, the Toyota Camry is trying to shed its vanilla reputation.

The redesigned 2015 Camry, unveiled Wednesday at the New York International Auto Show, is longer and wider, with a large, aggressive grille and chiseled sides. Toyota says it changed every exterior piece but the roof.

The Camry has been the best-selling car in the U.S. for the last 12 years, supported by loyal buyers wedded to a dependable family car. But Toyota acknowledges that tastes have changed, and buyers of midsize cars want more style, comfort and performance to go with the reliability.

U.S. Toyota division chief Bill Fay said the company started redesigning the Camry almost immediately after a new version went on sale in 2011. Fay said the company knew it needed a more daring style after competitors like Hyundai and Ford offered newer, more striking designs.

"Everyone was raising the stakes a bit. We had to make sure we could keep this competitive," Fay said Wednesday at the show.

Inside the updated Camry, there are softer materials and a wireless charging system. The body is stiffer and the suspension and steering were retuned for more responsive driving. Even the carpet and side mirrors were redesigned to make the car quieter.

The new Camry, which goes on sale this fall, will help the Camry defend its turf, which has been increasingly challenged by rivals.

The Honda Accord, redesigned for the 2013 model year, narrowed Camry's full-year sales lead to 41,000 cars last year from 73,000 in 2012. The Nissan Altima and the Ford Fusion each had bigger percentage sales gains last year than the Camry.

What's more, the new Mazda6 breezed past the Camry's fuel economy numbers. And even luxury makers like Mercedes-Benz have introduced new cars that sell for under $30,000 — right in Camry buyers' price range.

It didn't help that Toyota's reputation was hurt by a series of recalls in 2010. The Camry has never regained the 15 percent share of the midsize car market it held before the recalls. It controlled 13 percent of that market in 2013, with total sales of 408,484, according to Ward's AutoInfoBank.

The midsize rivals are competing in a shrinking market. Young families and aging Baby Boomers are flocking to small SUVs like the Toyota RAV4 and Honda CR-V, which offer more space and competitive fuel economy. Midsize car sales have fallen 8 percent so far this year, while small SUVs are up 20 percent, according to Kelley Blue Book.

In that kind of market, no one can stand still. Hyundai, which brought the midsize segment out of the doldrums with the racy 2011 Sonata, which went on sale in 2009, introduced a new Sonata in New York Wednesday.

The 2015 Sonata has ditched the sharp creases on the sides that polarized buyers in favor of a taut, refined look to match the upscale Genesis sedan. The new Sonata, which goes on sale this summer, has many new features, including Apple's CarPlay system that lets drivers control their Apple devices through the car.

The more refined styling may disappoint some fans. Mike Cimino, a Hyundai dealer and vice president of Phil Long Dealerships in Colorado Springs, Colo., was hoping for a revolutionary change along the lines of the 2011 model.

"I'm wondering what they have that's going to take them out of the box again," he said.

But Dave Zuchowski, the CEO of Hyundai in the U.S., said Hyundai no longer needs to grab buyers' attention like it did five years ago.

"We don't have to stand on the table and shout," he said.

Cimino, who also sells Toyotas, said the Camry doesn't need to make revolutionary changes. Toyota buyers are extremely loyal, he said, and are satisfied with small upgrades in design and technology.

Aaron Bragman, the Detroit bureau chief for the car buying site Cars.com, says Toyota surprised him with the extent of the changes on the 2015 Camry.

"They had to step up their game," he said.

In addition to those loyal buyers, Toyota has another advantage: the weak yen. Adam Jonas, an auto analyst with Morgan Stanley, says the depreciation of the yen has translated into a $2,500 to $3,000 profit per vehicle for Japanese automakers.

That's helped Toyota maintain its lead, since it can make a profit even if it offers big discounts. The average Camry currently sells for $23,965, or around $900 less than the average midsize car, according to KBB. Only the Dodge Avenger sells for less.

Those profits can also be reinvested in better products, like the new Camry.

"They will do what they need to do to stay on top," said Stephanie Brinley, an analyst with IHS Automotive.

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