Business

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An examination of the latest Census data shows a gender-based wage gap is affecting a majority of women around the United States.

The analysis conducted by the National Partnership for Women & Families is the first ever analysis of data separated by U.S. congressional districts.

The study shows that in 97 percent of the nation’s congressional districts, the median pay for women is less than the median pay for men by 23 cents. Women of color seem to experience an even greater disparity: African American women are paid 64 cents and Latinas are paid 55 cents for every dollar paid to white, Non-Hispanic men.

Apple sold more than 5 million iPhones this weekend, the company said in a press release. That surpasses the initial sales of the previous version.

As Bloomberg news reports, demand for the new phone quickly exceeded the initial supply, but some analysts expected bigger sales.

They report:

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Yesterday, Coca-Cola workers in Fort Worth rejected an offer to unionize at their bottling plant.

The Fort Worth Star-Telegram reports that the vote, which failed 215 to 191, would have made the bottling plant the first corporately-owned Coke plant in the south to unionize.

In that respect, the fact that the vote failed may be less surprising than the fact it made it that far in the first place. (The Star-Telegram notes that the vote represented the second attempt to join the Teamsters in as many years.)

As a “right to work” state, Texas has a low amount of union activity. And like most states around the country, the strongest unionization occurs in the public sector – making the scene in Fort Worth all the more surprising.

“I always tell people we don’t have unions in the Unites States,” says Dan Hamermesh, professor of economics at the University of Texas at Austin. “And in the private sector nationwide, we don’t. Eight percent are unionized nationwide. In Texas it’s way below that … but my guess is four percent in the private sector here in Texas. So it’s a very non-union state.”

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American Airlines has one canceled arrival at Austin Bergstrom International Airport this evening. While that may not sound like much – at least not to anyone booked on that flight – it may be symptomatic of a broader problem for Dallas-based American Airlines.

Against the backdrop of a labor struggle, American has seen some 300 flights canceled this week, as according to reports, pilots are calling in sick.

According to CBS News,

American has seen an increase in flight cancelations since early this month, when a federal bankruptcy judge allowed the company to impose new pay and work rules on pilots. The pilots had rejected the company's last contract offer in August.

Those new work rules increase the amount of flying hours on pilots, and allow American to operate more flights through partner airlines instead of American flight crews, according to CNNMoney.

Samsung

A small Austin-based technology company, Javelin Semiconductor, has landed its largest contract to date – thanks to a burgeoning relationship between Central Texas and South Korea.

Javelin Semiconductor was picked to produce a power amplifier for Samsung’s new Galaxy S Duos. Robert Wagner, a spokesperson for Javelin, partially credits the company’s continued partnership with Samsung to Austin’s connection to Seoul, South Korea.

“There’s a good relationship in general between Austin companies and Samsung in Korea. So we get some good recognition from the Korean side of Samsung, that we’re this Austin company and they’ve had good success with other local Austin companies like Silicon Labs.”

The Austin Chamber of Commerce’s Susan Davenport agrees. Davenport says that in addition to the success of local companies, the University of Texas has been influential in building Austin’s cluster of technology and talent – which companies like Samsung are now enjoying.  

Update at 12:31 p.m. ET. Federal Reserve Announces QE3:

The Federal Reserve announced it would spend $40 billion a month on bond purchases in an effort to stimulate the economy and drive the the unemployment rate down.

The Wall Street Journal says that unlike the first two rounds of Quantitative Easing, this time the Fed will focus solely on buying mortgage-backed securities.

Moments ago in San Francisco, Apple's Phil Schiller unveiled the latest incarnation of the company's massively popular smartphone.

The iPhone 5, said Schiller, is "the most beautiful product we've ever made."

Of course, you want to know what's different about this model: Essentially it's thinner, lighter, faster and also has a bigger screen than the iPhone 4s.

The device also comes equipped to work with faster wireless networks like LTE, which AT&T, Sprint and Verizon carry.

The AP adds:

The iPhone 5 will give a nice boost to U.S. economic growth in the last three months of this year, according to a new note from JPMorgan.

A lot of thought goes into giving your smartphone a distinctive look and feel, from the shape of the speaker — square, round or oval — to where to put the buttons — side, front or back.

But industrial designers like Robert Brunner say he doesn't have a lot of room to be creative.

"Because you're really being so heavily driven on maintaining a minimal physical size," he says. "So you really get into this very fine envelope of a few millimeters that you have to work with."

General Motors

An announcement on the General Motors website this morning says the auto maker is coming to Austin – creating an "Information Technology Innovation Center" that may ultimately employ up to 500 people. 

The company writes on its website:

Austin was chosen for an Innovation Center because the city already has people with the skills GM is seeking -  46,000, according to the May 2011 Bureau of Labor Statistics Occupational Employment Report.

“We anticipate hiring as many as 500 new GM employees in Austin,”[GM Chief Information Officer Randy Mott] said. “We look to the Innovation Centers to design and deliver IT that drives down the cost of ongoing operations while continuously increasing the level and speed at which innovative products and services are available to GM customers."

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The largest corporate employer in Central Texas, Dell, has sent out pink slips to an undisclosed number of workers. 

Despite acquisitions designed to broaden the company’s enterprise services, a slowing global economy, tough competitors, and a shift from desktop to mobile computing have hammered the Round Rock-based company’s sales, says industry analyst Shannon Cross.

“What hurt them most recently is just a dramatic slowdown in PC sales. Right now there’s a lot of uncertainty in the marketplace. China slowed dramatically for both HP and Dell in the most recent quarter. You’ve seen a lot of pricing pressure coming from some of the Asian competitors like Lenovo, Asus, and Acer.”

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High-end retailer Saks Incorporated announced that it plans to close its Saks Fifth Avenue stores located in Austin’s Arboretum Market at the end of the year.

Approximately 64 associates are employed in the Austin store. The retailer says all affected associates either will be offered transfer opportunities or will receive employment separation packages. Saks will also be closing down a location in Highland Park, Illinois.

“Store closing decisions are never easy,” Saks Chairman and Chief Executive Officer Steve Sadove says in a statement. “We are very appreciative of our many loyal associates in both the Highland Park and Austin Saks Fifth Avenue stores, and we are committed to providing them with needed assistance during this period.”

KUT News

One of the biggest employers in Central Texas is cutting jobs.

Dell let affected employees know about the reductions yesterday. The company says the cuts are in an effort to remain competitive and become more efficient.

“We recognize any reduction is significant for impacted team members and their teammates, and we are working to minimize consequences,” Dell Marketing Director David Frink says.

Dell isn’t revealing how many or which positions are being eliminated. Frink says some employees may be able to work elsewhere in the company.

Erik Reyna for KUT News

Texas has one of the strongest economies in the nation. But in recent months the Lone Star State seems to have been outshined by the Golden State. The U.S. Labor Department reports that California has added 365,100 new jobs to its economy while Texas added 222,500.

This horse race captured the attention of The Atlantic. In a post to its website called “Why California Is Suddenly Adding Jobs Faster Than Texas,” author Jordan Weissman posits several reasons for the change:. One is growing government jobs in California versus declining government work in Texas. Another is the theory that California’s economy is primarily based on housing – which is making a slow but somewhat steady recovery.

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Apple. Samsung.

Friends? Enemies? Frenemies?

The nature of the relationship is an important question in Austin, where Samsung recently announced it will spend at least $3 billion retooling its Austin Semiconductor Plant to produce advanced processor chips.

Industry rumors say that a primary purpose of the Austin retooling is to make electronic innards for Apple's iPhones and iPads, though Samsung does not not confirm that. Worldwide, Samsung is the biggest supplier of iPhone and iPad processing chips. In fact, many analysts say that Apple could not produce the iPhone without Samsung.

But how does that cozy relationship fit with a bitter court battle that has raged around the globe?

Op-Ed: Are There Any Black People in Austin?

Aug 29, 2012
nataliecofield.com

Austin routinely tops national lists for jobs, living and general quality of life. But do those accolades apply equally to all its citizens?

One of the findings of the City of Austin’s African American Quality of Life Initiative was that black Austinites lacked several of the social opportunities African Americans enjoy in bigger cities like Washington D.C. or Atlanta. But the following op-ed from Natalie Madeira Cofield, President & CEO of the Capital City African American Chamber of Commerce, argues that more young African American professionals should consider making Austin – and cities like it – their home. You can read Cofield’s thoughts below.

‘Are there any black people there?’ 

That’s a question I am too often confronted with by my African American peers when speaking about the growing number of professional opportunities that exist in Austin, Texas. Contrarily, I have no problem finding smiling faces of non-African Americans to cheer me on while I am spreading the business gospel of ‘Austin Awesomeness’ around the country. Austin has successfully captured the hearts of hippies and techies alike.

After months of sitting on their wallets, Americans went shopping in July. The uptick reported Tuesday is boosting economists' hopes for a reasonably strong back-to-school season. And retailers are looking for clues about how the holiday shopping season will turn out later in the year.

"This is a good report," Chris Christopher, an economist with IHS Global Insight, a forecasting firm, wrote in an assessment of the latest report. "It indicates that consumers came back after hunkering down" during the year's first half when sales were "dismal."

The Federal Trade Commission has finalized a settlement with Facebook in which the social media leader agrees to get users' approval before making any privacy changes and agrees to periodic third-party audits for the next 20 years on how it handles user privacy.

We told you about this settlement back in November, but today, Reuters reports, after a period of public comment, the settlement has become official.

Update at 4:33 p.m. ET. Right At Expectations:

Facebook reported slightly stronger than expected profits. For the second quarter, it reported a net loss of $157 million or 11 cents a share. But when it adjusted its earnings to remove stock compensation charges related to its IPO, Reuters reports, Facebook actually made 12 cents a share.

Former Citigroup CEO Says Big Banks Should Be Split Up

Jul 25, 2012

Sandy I. Weill, the former Citigroup CEO who helped usher in the era of super banks, said during an interview with CNBC today that big banks should be split up.

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