Verizon offers new service speed to customers, Donald Sterling needs cash, and McDonald's reports sales dip again.
Sterling Needs Sale of Clippers
The Chief Financial Officer of Beverly Hills Properties, the real estate firm owned by Los Angeles Clippers owner Donald Sterling, says if Sterling does not sell the Clippers he will be forced to sell a large portion of his real estate holdings to pay off debt. Darren Schield testified Monday that if the $2 billion proposed purchase of the Clippers does not take place, banks could call in Sterling’s $480 million in liabilities. Schield said Sterling owns about $2.5 billion in property. Schield was called to testify by lawyers for Sterling’s wife Shelly who has asked a probate court to confirm her as having the authority to sell the National Basketball Association team to former Microsoft CEO Steve Ballmer.
Verizon Sweetens Phone Service Deals
Because of the growing significance of digital media, Verizon says it will offer residential customers enhanced speed to upload and share content. Verizon said Monday that new and existing clients “will receive upload speeds that match their download speeds, making it easier and faster to share.” It said the speed boost will be free for current customers. The company said it will make the upgrade to small business clients as well later this year.
Comcast Earnings Beat Expectations
Comcast announced Tuesday it posted second-quarter earnings of 75 cents per share, up from 65 cents a share in the year-earlier period, with revenue coming in at $16.84 billion. Analysts had expected the company to report earnings of $16.95 billion in revenue and 72 cents per share. The New York Public Service Commission is still reviewing Comcast’s plan to acquire the second largest cable provider, Time Warner Cable, for $45 billion.
Atlantic City Casino Robbed
Police in Atlantic City say two masked robbers stole more than $180,000 from Caesars Atlantic City casino Monday morning. Authorities say one robber pulled a gun before taking two plastic boxes containing more than $180,000 in cash. The robbers left the scene in a car. The New Jersey State Police Gaming Bureau is investing the case since it occurred within the casino. The robbery comes amid continued reports of depressed activity in Atlantic City, which has had declining revenue for the past eight years.
Consumer Prices Jump in June
The cost of gasoline rose in June causing U.S. consumer prices to do the same, according to the Labor Department. On Tuesday the Consumer Price Index was released with an increase of 0.3 percent last month after May’s 0.4 percent gain. Gasoline prices accounted for two-thirds of the rise in prices in June. In the 12 months from June to June the CPI increased 2.1 percent. Gasoline prices jumped 3.3 percent in June after a mild 0.7 percent increase in May. Prices for electricity also rose, while food prices edged up 0.1 percent in June, the smallest such increase since January.
McDonald’s Sees Profits Slip Again
McDonald’s Tuesday reported quarterly profit fell about 1 percent due to lower consumer traffic, according to the company. McDonald’s net income fell to $1.39 billion, or $1.40 per share, in the second quarter ended June 30 from $1.40 billion a year earlier. Total sales rose 1 percent to $7.18 billion, while global comparable sales were flat. Sales at U.S. restaurants open at least 13 months fell 1.5 percent overall. U.S. business accounts for 30 percent of the fast-food company’s overall revenue.