Mike Kemp/Rubberball Libraries are passe. Or so prevailing wisdom goes. After all, in the Internet era, where practically every American has a computer (or tablet or a Web-enabled smartphone), there's no need to trek to the library to do research. And books? Who checks out, or even reads, physical books in the age of the Kindle, Nook and iPad? That all sounds logical, except for one thing: The facts contradict the theory. Readers Welcome Half of America has visited a library in the past 12 months, Pew Research found in a poll of 6,224 Americans ages 16 and older. And a mere 4 percent say they've moved exclusively to e-books. What's more, while the millennial generation is widely understood to be more wired than their elders, it turns out that the younger you are, the more likely you are to frequent the library: 59 percent of 16- and 17-year-olds say they've visited a library at least once in the past year. (And to be clear, we're talking about full-service, separately housed public libraries -- not just the school media center.) The same holds true for 48 percent of millennials ages 18 to 29, and 52 percent of folks ages 30 to 49 (moving into Gen X territory here). In contrast, those ages 65 and up, whom you'd expect to be most hidebound in their devotion to clothbound books, are the least frequent users of public libraries. Only 39 percent of this group says they've visited a library in the past year. Get a Library Card -- It's a Bargain Why do libraries retain their popularity in the digital age? In part, it's probably economics. According to a Huffington Post poll last year, about 68 percent of Americans read at least one book last year. Breaking that number down further, "25 percent read between one and five books, 15 percent read between six and 10 books, 20 percent read between 11 and 50, and 8 percent read more than 50" books. That works out to an average of about 12 books read per reader. The "official" estimate of the American Library Association is that library patrons check out about 8.1 books per person per year -- suggesting that the majority of books that Americans read are checked out of libraries. In fact, the numbers suggest that Americans borrow twice as many books from libraries as they buy from bookstores. And why not? The School Library Journal in 2013 figured the average cost of a book (excluding reference books) is $15.32. Multiply that by the 8.1 books checked out of a library, and you have $124 that library patrons -- including you? -- save in book-buying costs annually. Most of us spend a ton of time researching our options when we first sign up for a plan or policy, then forget all about it and make monthly payments like a robot. But this can cost you.
Get a Read on How Much You Can Save Using Your Library
Labor Market Data Upbeat, but Housing Starts Fall Sharply
Nati Harnik/AP WASHINGTON -- The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, suggesting the labor market recovery was gaining traction. The economy's brightening outlook was dimmed somewhat by another report Thursday showing a tumble in housing starts and building permits last month. "This part of economy is going in the wrong direction while the rest of the economy is picking up," said Anthony Karydakis, chief economic strategist at Miller Tabak in New York. Initial claims for state unemployment benefits dropped 3,000 to a seasonally adjusted 302,000 for the week ended July 12, the Labor Department said. Economists had forecast first-time applications for jobless aid rising to 310,000. The four-weak average of claims, considered a better gauge of labor market trends as it irons out week-to-week volatility, hit its lowest level in seven years. Prices for U.S. Treasury debt extended gains after the data, while U.S. stock index futures held losses. The claims data covered the survey week for July nonfarm payrolls. Claims fell 12,000 between the June and July survey period, suggesting another month of solid job gains after June's hefty 288,000 increase. Employment has grown by more than 200,000 jobs in each of the last five months, a stretch not seen since the late 1990s.
Rolls-Royce Says Sorry With $1.7 Billion Buyback
Rolls-Royce’s boss John Rishton had a clear message for investors Thursday: Sorry.
For years, the aero-engine maker was a stock-market darling. Rolls-Royce’s yearly sales and earnings growth was reliable to the point of being dull.
Of late, Rolls-Royce has been anything but boring. Just not for the reasons investors like.
The U.K. Serious Fraud Office and U.S. regulators have been looking into alleged illegal business dealings Rolls-Royce conducted in Asia. The probe remains open.
The British company tried to strengthen its maritime engine business through a $10 billion takeover of Finland's Wärtsilä Oyj (WRT1V.HE) which rebuffed Rolls-Royce’s preliminary approach. The attempted acquisition of a company of that size surprised investors who hadn't realized expansion was on management's agenda so soon after its full takeover of Tognum, a German engineering company originally acquired in partnership with Daimler.
Mr. Rishton caught investors off-guard again in February when he said there would be no growth in profit and sales this year.
Investors voted with their feet. The stock slumped more than 19% this year.
True, Mr. Rishton hasn’t been twiddling his thumbs. Now three years in the job, he is cleaning house, sweeping out inefficiencies that had crept in during a decade of expansion in which Rolls-Royce grew its equipment-services business rapidly amid a boom in demand for passenger aircraft. Selling the company’s subscale industrial gas turbine business to Siemens (SIE.XE) showed how Mr. Rishton wants to focus Rolls-Royce on areas with the best growth potential.
The goal: to bring profitability on a par with rivals such as General Electric Co.(GE)
At Thursday’s presentation to analysts, Mr. Rishton was keen to calm investor nerves and show he is serious about that task.
The £1 billion share repurchase, a first for the company, rewards shareholders for their loyalty. Mr. Rishton ruled out fancy deal-making, reassuring investors that Rolls-Royce won’t squander money on empire building. The proceeds from the Siemens transaction, due to close by year end, will finance the share repurchase.
Rolls-Royce will also curtail capital expenditure, without crimping too much on R&D, as these costs should fall to around 4% of underlying sales before the end of the decade from 4.9% last year.
Mr. Rishton had one more message for shareholders long used to Rolls-Royce’s minimalist approach to investor relations. Greater transparency is in the offing. Thursday’s investor day would be followed by more, Mr. Rishton promised.
Investors liked what they heard. Rolls-Royce shares jumped 6%.
Uncle Sam Expects Gas Prices to Average $2.60 in 2015
Orlin Wagner/AP The Energy Department again slashed its prediction for next year's average price of gasoline across the U.S., this time to $2.60 a gallon. That would be 23 percent below this year's projected average and the lowest full-year average since 2009. If that comes to pass, the price drop will save U.S. drivers $100 billion over the course of the year based on current consumption levels. That will boost the overall economy by reducing shipping and transportation costs, and leaving consumers more money to spend on other things. In its most recent short-term energy outlook, released Tuesday, the Energy Department's Energy Information Administration cut its gasoline price forecast for 2015 by 35 cents a gallon. It was the second time in two months that the EIA cut the forecast by more than 30 cents a gallon. Daily Drops Since Sept. 26 The average national price of gasoline to $2.66 a gallon on Tuesday according to AAA, 61 cents less than last year at this time. The national average has fallen every day since Sept. 26. The steep drop in gasoline prices is a result of a drop in crude oil supplies. Global crude prices have fallen to around $66 per barrel from a June high of $115 per barrel. Global supplies are high thanks in part to rising production in the U.S., while global demand is relatively weak because of slowing economic growth in Europe and Asia. The lower crude prices are forcing oil companies to scale back drilling plans for next year. As a result, the EIA trimmed its forecast for U.S. production growth. U.S. crude oil output is expected to rise by 300,000 barrels per day to 9.3 million barrels a day. The EIA had previously expected production to rise by 400,000 barrels per day. Despite a colder than normal November, the EIA expects home heating costs to fall this winter compared to last year. Weather forecasters do not expect a repeat of last year's consistently low temperatures, and prices for propane and heating oil are much lower than last year. Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. More from The Associated Press
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