The CEOs of Twitter and Fox stepping down. Read about these and more of the day's top business news stories.
Murdoch, Stepping Down, Keeps Fox All in the Family
James Murdoch will take the reins at Twenty-first century Fox, Inc. when his father, Rupert, 84, steps down as CEO, the Associated Press reports. Murdock’s other son, Lachlan, will become executive co-chairman. Murdoch will become executive chairman and remain deeply involved in the company, while his sons are to run the business in a partnership, a source said. The elder Murdoch will also retain a grip on the corporation behind Fox News Channel, Fox broadcast network and the 20th Century Fox movie studio through a family trust that owns 38 percent of the voting shares. He has been CEO since 1979 and chairman since 1991.
Twitter CEO Steps Down
Dick Costolo, the CEO of Twitter, will step down from his position on July 1, the company announced Thursday in a filing with the SEC. Jack Dorsey will be the interim CEO once Costolo leaves. Dorsey is the co-founder of Twitter and Chairman of the Board. Dorsey is also CEO of Square, Inc., a payments and financial services company he co-founded in 2009. Costolo has been criticized recently for Twitter’s failure to make revenue and profitability targets and for the fact that Twitter’s user base has stagnated.
How Bad Was the Hack?
A federal employee union says the hackers who recently stole federal information actually took personal data and Social Security numbers from every federal employee, not just those in certain departments. The American Federal of Government Employees says the Obama administration is holding back on information about the hack. According to the union, hackers stole military records, veterans’ status information, address, birth date, job and pay history, health insurance, life insurance and pension information as well as Social Security numbers. Members of Congress are still saying the hacking attack was conducted by The Chinese.
Producer Prices Make Huge Increase
The Labor Department Friday said U.S. producer prices recorded their biggest increase in more than 2 ½ years in May as the cost of gasoline and food rose. The producer price index for final demand increased 0.5 percent last month after a 0.4 decline in April. In the year to May, the PPI fell 1.1 percent overall, marking the fourth straight 12-month decrease. A sharp decline in crude oil prices since last year and the strong dollar led to the drop in producer prices. But last month gasoline prices rose 17 percent and food prices rose almost 1 percent, the largest gain in that area in over a year. The higher food prices came about because of a shortage of eggs after an outbreak of bird flu that caused millions of chickens to be put to death.
Initial Benefits Claims Rise in First Week of June
Initial claims for unemployment benefits rose last week by 2,000 to 279,000. The four-week average of claims, a less volatile number that offers a more accurate labor market picture, climbed to 278,750. This is the 14 consecutive week that initial claims for unemployment benefits have stayed below 300,000. The total number of people claiming benefits in all programs for the week ending May 23 was 2,062,171, a decrease of 64,979 from the previous week. There were 2,447,338 persons claiming benefits in all programs in the comparable week in 2014, the U.S. Department of Labor reported.
Plane Promptness Up, Cancellations Down
The U.S. Department of Transportation said Thursday that 81.8 percent of flights on the nation's leading airlines arrived on time in April. That's up from 78.7 percent in March and 79.6 percent in April of last year. Hawaiian Airlines, Alaska Airlines and Delta Air Lines share bragging rights with the best on-time ratings, while low-fare carriers Frontier Airlines and Spirit Airlines had the worst. Airlines canceled about 4,500 flights, or 0.9 percent of their schedules, down from 2.2 percent in March and 1.1 percent the previous April. Envoy Air, which operates most American Eagle flights, had the worst cancellation rate. The rate of consumer who filed complaints with the government surged 31 percent compared with April 2014 but remained at a rate of about 1 in every 60,000 passengers. Frontier had the highest rate of complaints, followed by Spirit. Southwest had the lowest rate.