Lenovo to buy IBM server unit for $2.3B
China's Lenovo Group is buying IBM's low-end server business for $2.3 billion, expanding a product lineup dominated by PCs, tablets and smartphones. Lenovo, the world's biggest personal computer maker, said that it expects to offer jobs to 7,500 IBM employees as part of its acquisition of the so-called x86 server business. IBM will continue to make mainframe computers, high-end servers and storage systems. The acquisition will accelerate Lenovo's expansion beyond its traditional PC business, said Peter Hortensius, a senior vice president. Lenovo, based in Beijing and in Research Triangle Park, N.C., has collaborated with IBM for a number of years. The Chinese company acquired IBM's PC unit in 2005 and has expanded into wireless products including smartphones and tablets.
Initial jobless claims nearly flat last week
The number of Americans seeking unemployment benefits ticked up 1,000 last week to a seasonally adjusted 326,000, a level consistent with steady job gains. The Labor Department said the four-week average, a less volatile measure, fell for the third straight week to 331,500. Both figures are close to prerecession levels and suggest that companies are laying off few workers. Still, hiring will also need to pick up to make a dent in the still-high 6.7 percent unemployment rate. Many economists forecast that job gains will pick up a bit this year. One sour note in the report: Nearly 1.4 million people who have been unemployed longer than six months lost benefits in the week that ended Jan. 4, the latest period for which figures are available. That's because an emergency program that provided extended benefits expired Dec. 28.
U.S. existing home sales climbed last month
Existing home sales in December rose 1 percent from the previous month to an annual rate of 4.87 million, the National Association of Realtors said. The organization also reported that for all of 2013, there were 5.09 million completed transactions for existing homes, 9.1 percent higher than 2012 and the strongest performance since the housing boom in 2006. November's existing-home sales were revised slightly to an annual rate of 4.82 million, down from the originally reported figure of 4.9 million. The association also reported that the median existing-home price last month was $198,000, up nearly 10 percent from December 2012.
American has a new incentive to be on time
American Airlines unveiled a new employee incentive plan that will pay workers up to $150 a month if operations at the airline are better than its competitors. The program, called Ops Olympics, will measure American's on-time arrival, baggage performance and customer satisfaction against its three largest competitors: Delta Air Lines, Southwest Airlines and United Airlines. If American ranks first in the Department of Transportation monthly reports in those categories, employees will earn $50 for each category win, up to a maximum of $150.
Wells Fargo to sell insurance brokerage sites
Wells Fargo & Co., the largest U.S. home lender, agreed to sell more than 40 percent of its insurance brokerage locations to focus brick-and-mortar operations on higher-growth regions and bigger clients. USI Insurance Services will purchase 42 of Wells Fargo's insurance brokerage and consulting offices, according to a statement from the San Francisco-based lender. The remaining 55 locations are in larger markets that generate more than 90 percent of brokerage revenue.
FROM NEWS SERVICES
