Moody’s set to downgrade U.S. without budget deal

NEW YORK » The U.S. government’s debt rating could be heading for the "fiscal cliff" along with the federal budget.

Moody’s Investors Service on Tuesday said it would likely cut its "Aaa" rating on U.S. government debt, probably by one notch, if budget negotiations fail. If Congress and the White House don’t reach a budget deal, about $1.2 trillion in spending cuts and tax increases will automatically kick in starting Jan. 2, a scenario that’s been dubbed the "fiscal cliff," because it is likely to send the economy back into recession and drive up unemployment.

A year ago Moody’s cut its outlook on U.S. debt to "negative," which acts as a warning that it might downgrade the rating, after partisan wrangling over raising the U.S. debt limit led the nation to the brink of default. 

Nielsen shows different uses of televisions

NEW YORK » The number of U.S. homes that don’t get traditional television service continues to increase, but that doesn’t mean they don’t have TVs.

The Nielsen company said in a report issued Tuesday that three-quarters of the estimated 5 million homes that don’t get TV signals over the airways or through cable, satellite or telecommunications companies have televisions anyway. Many of these homes are satisfied to use their TVs for games or to get programming through DVDs or services like Netflix or Apple TV, said Dounia Turrill, senior vice president for client insights at Nielsen.

Retail group opposes card fee settlement

NEW YORK » The National Retail Federation is opposing a proposed $7.25 billion settlement that Visa Inc., MasterCard Inc. and major banks have agreed to pay retailers for alleged fee fixing.

The retail trade association said Tuesday that its board has given approval for it to go to court to try to block the settlement. The NRF, which is not a party to the lawsuit that led to the settlement, says it is unsure whether outside groups will be allowed to intervene or whether the case qualifies as a class action.

The NRF says it believes the proposed settlement will not stop swipe fees from continuing to rise, which will hurt both retailers and shoppers, and that it will prevent any future legal challenges.

McDonald’s sales rebound on value deals

NEW YORK » McDonald’s said a key sales figure climbed 3.7 percent in August, as the fast-food chain emphasized the value of its menu offerings amid the challenging global economy.

The world’s biggest hamburger chain said Tuesday that its breakfast menu and value items pushed up sales by 3 percent in the U.S. Last month, the figure had dipped 0.1 percent in the region after the company said its promotions failed to drive growth.

In Europe, which is McDonald’s biggest market and accounts for 40 percent of its business, sales at restaurants open at least 13 months was up 3.1 percent on strength in the U.K., France and Russia.

YouTube offers new iPhone app to fill void

SAN FRANCISCO » YouTube is being reprogrammed for the iPhone and iPad amid the latest fallout from the growing hostility between Apple and the video service’s owner, Google.

The new format debuted Tuesday with the release of a new YouTube application that will introduce more advertising and more videos on Apple’s trend-setting devices.

The changes are being made because Google Inc. and Apple Inc. didn’t renew a five-year licensing agreement that established YouTube as one of the built-in applications in the operating system that runs the iPhone and iPad.

U.S. employers posted fewer jobs in July

WASHINGTON » U.S. employers posted fewer jobs in July than in June, further evidence that hiring may stay weak in the coming months.

Job openings fell to a seasonally adjusted 3.67 million, the Labor Department said Tuesday. That’s down from June’s 3.72 million job openings, which was revised lower.

The data follow Friday’s disappointing employment report, which said the economy added only 96,000 jobs in August. That’s below July’s total of 141,000 and the average 226,000 a month added in the first three months of the year. The unemployment rate fell to 8.1 percent from 8.3 percent, but only because the number of people working or looking for work fell.

Iowa CEO to plead guilty to $200M fraud

CEDAR RAPIDS, Iowa » The founder of an Iowa brokerage has signed a plea agreement with federal prosecutors in which he admits to carrying out a $200 million fraud and embezzlement scheme that bankrupted his company and could result in him spending the rest of his life in prison, prosecutors said Tuesday.

Prosecutors said Russ Wasendorf Sr. will plead guilty to mail fraud, embezzling customer funds and two counts of making false statements to regulators. U.S. Magistrate Judge Jon Scoles confirmed the agreement but hasn’t ruled on the matter. Prosecutors said the agreement calls for Wasendorf, 64, to be sentenced to up to 50 years in prison.

ON THE MOVE

Kauai based Aqua Engineers announces these appointments: 

>> Michael Street as director of engineering. He has extensive experience in engineering and construction management and was project manager for Bowers + Kubota Consulting.

>> Bill Thornton as director of construction services. He was vice president and general manager of Briant Construction, a former wholly owned subsidiary.

Waikiki Health Center has named Kelly Joseph as director of marketing and development. She was a senior business development director for the American Heart Association, Hawaii Division.

SHIP AHOY!