Business

Economy
3:14 pm
Thu January 23, 2014

Should Austin Offer Economic Incentives? Athenahealth Deal Stirs Debate

The Seaholm building, photographed in 2011. Athenahealth’s proposed research and development center would use the iconic building as office space.
I-Hwa Cheng for KUT News

Austin’s facing a familiar question: whether to approve economic incentives luring new jobs to town.

Today, the Austin City Council was briefed on a proposal for incentives for health IT company Athenahealth.

Massachusetts-based Athenahealth – which currently employs 36 Austinites in offices at The Domain – is promising a new research and development center. Located inside the former Sealholm Power Plant in downtown Austin, the company says it would create 607 new jobs over 10 years.

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Business
11:00 am
Thu January 23, 2014

Target Hack A Tipping Point In Moving Away From Magnetic Stripes

A cryptographic chip embedded in a British debit card. America is nearly alone in still relying on magnetic stripes to authenticate purchases.
Christopher Furlong Getty Images

Originally published on Thu January 23, 2014 2:01 pm

The credit and debit card data breaches at Target and Neiman Marcus compromised more than 70 million American consumers, and analysts say even more of us are at risk. That's because the technology we use to swipe for our purchases — magnetic stripes on the backs of cards — isn't hard for a skilled fraudster to hack.

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Business
2:51 pm
Tue January 21, 2014

Austin Snail Mail Disruptors Outbox Shutting Down

A fleet of Outbox "unpostmen" would pick up and scan subscribers mail. Today, the company announced it was closing.
Filipa Rodrigues for KUT News

Less than a year after expanding, an Austin startup is shutting down.

As KUT reported in February of last year, “Outbox picks up its customers’ mail, scans it, and makes it available online. … Outbox workers open and scan letters, catalogs and flyers. Customers log in to Outbox’s website to see their – now-digital – mail.”

At the time, Outbox had expanded its operations into California after testing its service in Austin. But citing a litany of issues impacting its service, Outbox announced today it was ceasing operations.

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Business
2:38 pm
Fri January 17, 2014

Analysts: Credit Card Hacking Goes Much Further Than Target

Hackers use credit card scanning machines as part of their sophisticated campaign to steal credit card information and sell it.
Joe Raedle Getty Images

Originally published on Fri January 17, 2014 3:23 pm

The holiday season data breach at Target that hit more than 70 million consumers was part of a wide and highly skilled international hacking campaign that's "almost certainly" based in Russia. That's according to a report prepared for federal and private investigators by Dallas-based cybersecurity firm iSight Partners.

And the fraudsters are so skilled that sources say at least a handful of other retailers have been compromised.

"The intrusion operators displayed innovation and a high degree of skill," the iSight report says.

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Business
8:17 am
Sun January 12, 2014

Neiman Marcus Notifying Customers Whose Cards Were Compromised

A Neiman Marcus in Chicago.
M. Spencer Green AP

Originally published on Sat January 11, 2014 3:50 pm

The luxury retailer Neiman Marcus says it has begun notifying customers whose credit cards were compromised during a security breach.

The AP spoke to Ginger Reeder, spokeswoman for Dallas-based company, who would not estimate how many customers could be affected.

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Business
5:14 am
Thu January 9, 2014

The Fruits Of Free Trade: How NAFTA Revamped The American Diet

Originally published on Fri January 10, 2014 9:21 am

Walk through the produce section of your supermarket and you'll see things you'd never have seen years ago — like fresh raspberries or green beans in the dead of winter.

Much of that produce comes from Mexico, and it's the result of the North American Free Trade Agreement — NAFTA — which took effect 20 years ago this month.

In the years since, NAFTA radically changed the way we get our fruits and vegetables. For starters, the volume of produce from Mexico to the U.S. has tripled since 1994.

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Business
7:00 am
Mon December 30, 2013

The Texas Economy in 2014: Signs of a Slight Slowdown?

Dallas Fed Economist Keith Phillips
Credit Dallas Federal Reserve Bank

For the nation's economy,  2013 is a story of a continued comeback following a devastating recession. 

And for Texas?  Well, the story's slightly different.  

Keith Phillips, analyst with the Dallas Federal Reserve Bank says there's no question 2013 was a good year for the Texas economy with growth in most sectors.

Phillips says the low cost of living, in addition to the low cost of doing business in Texas has helped the Lone Star State maintain a job growth rate a full percentage point higher than the national average in 2013.  But the energy exploration boom that's been fueling an expansion of jobs, construction and exports appears to be tapering off.

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Business
6:53 am
Thu December 19, 2013

Breach At Target Stores May Affect 40 Million Card Accounts

Justin Sullivan Getty Images

Originally published on Thu December 19, 2013 8:04 am

Target Corp. acknowledged early Thursday that there was a massive security breach of its customers' credit and debit card accounts starting the day before Thanksgiving and extending at least to Dec. 15 — the heart of the holiday shopping season.

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Technology
3:08 pm
Wed December 18, 2013

Apple is Manufacturing its New Mac Pro in Austin

A screen shot from a promotional video showcasing the new Mac Pro.
youtube.com/apple

Update: Austin Mayor Lee Leffingwell says Apple’s local manufacturing of the Mac Pro means about 800 new jobs.

“I think it’s another day in the life of a growing city,” he tells KUT News, “but it’s a big day in the life of Austin, because as you know, Apple is a premiere company around the world. When they make an important step like this here in our city, that’s going to be heard around the world to our advantage.”

Apple has already announced it’s building a $300 million operations center in Northwest Austin. For that project, Apple is receiving a $21 million grant from the state, over $8 million from the city and $6 million from Travis County

Original story (11:58 a.m.): Apple’s new Mac Pro is being manufactured in Austin.

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Business
2:44 pm
Wed December 18, 2013

Fed Says It Will Begin Tapering Off Its Stimulus In January

Federal Reserve Chairman Ben Bernanke delivers remarks Wednesday in Washington, at his final planned news conference before he steps down.
Jonathan Ernst Reuters/Landov

Originally published on Wed December 18, 2013 6:31 pm

(This post was last updated at 3:50 p.m. ET)

Citing an improving economy, the Federal Reserve announced Wednesday that it would begin gradually paring back an $85 billion-a-month bond-buying program aimed at stimulating growth.

The move was seen as a tentative vote of confidence and comes amid an improving jobs picture and other positive signs as the U.S. continues struggles to emerge from the worst downturn since the Great Depression.

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Business
3:26 pm
Mon December 16, 2013

Do Women CEOs Have a Tougher Time Pitching Start-Ups?

Dr. Hill working with a lab assistant at Spot On Sciences.
Credit Spot On Sciences

In baseball, the crowd holds its breath, waiting for the pitch.

In the business world, pitching is similar: suspense can be a killer, and ideas often get knocked down. Scrappy start-ups and venture capital abound in the modern economy, but success isn’t always guaranteed.

Dr. Jeanette Hill, CEO of Spot On Sciences and home blood test HemaSpot knows pitching – and it's nothing like what you’ve seen on "Shark Tank."

“You’ve got about 60 seconds, sometimes up to two minutes,” she tells KUT’s David Brown. “You have to get your idea across, you have to sell the audience … get it out there without stumbling.”

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Technology
2:05 pm
Fri December 13, 2013

Austin, This Weekend is Your Chance to Try Google Glass

Google Glass is a sleek, lightweight hands-free computing device in a eyeglass frame.
Filipa Rodrigues for KUT News

Google has been traveling the U.S., showing off its wearable computing device Google Glass.

This weekend Google is bringing Glass to Austin. It's an unique opportunity to get  firsthand experience with the divisive device - which has inspired strong reactions among many who have yet to use it. 

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Business
11:43 am
Fri December 13, 2013

Why In-N-Out Burger Pays More Than Other Fast Food Joints

Opening day at Austin's first In-N-Out Burger saw plenty of lines.
Credit Jorge Sanhueza-Lyon, KUT News

Austinites got a taste of California yesterday with the opening of the city’s first In-N-Out Burger at 45th and Airport. The drive thru is known for made-to-order burgers and an ordering system that allows you to micromanage your meal. (Want your bun extra toasted? Just ask.) 

In-N-Out Burger has no freezers. No microwaves. No heat lamps. And In-N-Out has been quietly going against another trend in the low-wage, low-benefit fast food industry: they're paying their employees much more than the industry standard. 

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Technology
11:27 am
Thu December 5, 2013

Texan Named to Twitter's Board of Directors

Texarkana-born Marjorie Scardino is the first woman appotinted to Twitter's board of directors.
flickr.com/financialtimes

Social media giant Twitter announced Thursday that Marjorie Scardino – Texarkana native, Baylor grad and former Pearson CEO – is joining its board of directors. Scardino is the first woman to be appointed to Twitter’s board.

Scardino received a little more than 4,000 shares of Twitter to serve on its board, according to SEC filings. She comes onboard after the company was criticized for not having women in high company positions. Twitter went public in November and is estimated to be worth more than $20 billion.

Scardino led educational publishing company Pearson for more than 10 years until 2012. During that time, she tripled its profits to a record $1.5 billion.

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Economy
12:09 pm
Wed December 4, 2013

Income Inequality Is The 'Challenge Of Our Time,' Obama Says

President Obama talks Wednesday about the economy and growing economic inequality in Washington.
Evan Vucci AP

Originally published on Wed December 4, 2013 3:46 pm

President Obama tried Wednesday to turn the conversation back to the economy, calling the growing income gap the "defining challenge of our time."

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