Business and Finance

UPDATED at 9:40 a.m. with St. Louis activity.

Apple’s latest iPad drew die-hard fans to stores in the U.S. and nine other countries Friday, many of whom lined up for hours to be among the first to buy one.

The third version of the iPad went on sale at 8 a.m. local time, with 25 other countries getting it a week later. The new model, at prices starting at $499 in the U.S., comes with a faster processor, a much sharper screen and an improved camera, though the changes aren’t as big as the upgrade to the iPad 2.

“I don’t think it’s worth the price but I guess I’m a victim of society,” Athena May said in Paris.

About 450 people lined up outside Apple’s Ginza store in downtown Tokyo. Some had spent the night sleeping outside the store. In Madison, Wis., people brought reclining lawn chairs for naps, while a few played games on older iPads.

Customers also gathered outside the two St. Louis-area Apple stores before they opened Friday. At the Galleria store, about 100 people were waiting when the store opened at 8 a.m., a sales specialist said.

“It was a party atmosphere,” said the specialist, who requested her name not be revealed because company policy does not allowed her to be quoted in the media.

The Galleria store opened two hours early to accommodate the anticipated rush of customers to buy the new iPad. An early opening also was scheduled for Saturday.

Apple customers also showed up early at the store at West County Center, a store representative said.

In London, Dipak Varsani, 21, got in line at 1 a.m. Thursday and said he was drawn by the new device’s better screen.

“You’ve got clearer movies and clearer games,” he said. “I use it as a multimedia device.”

In Hong Kong, a steady stream of buyers picked up their new devices at preset times at the city’s sole Apple store after entering an online lottery.

The system, which required buyers to have local ID cards, also helped thwart visitors from mainland China - Apple’s fastest growing market - who have a reputation for scooping up Apple gadgets to get them earlier and avoid sales tax at home. A release date in China has not yet been announced.

Kelvin Tsui, a 26-year-old hospital worker in Hong Kong, was allowed to buy two and planned to sell the second to make money.

Two years after the debut of the first iPad, the device’s launch has become the second-biggest “gadget event” of the year, after the annual iPhone release. Customers could have ordered iPads ahead of time to arrive at home Friday, but many came out in person for the atmosphere.

“People always stop to talk to us,” Harry Barrington-Mountford, 22, said in London. “I am exhausted though, I have only had about 45 minutes of sleep.”

Christos Pavlides got to a downtown Philadelphia store at 10 p.m. Thursday and was the first in line. He already owns the two previous iPad models and several iPhones and figures the new iPad was next.

Despite competition from cheaper tablet computers such as Amazon.com Inc.’s Kindle Fire, the iPad remains the most popular tablet computer. Apple Inc. has sold more than 55 million iPads since its debut in 2010.

For some customers, standing in line was the only chance to get a new iPad on Friday. Apple quickly ran out of supplies it set aside for advance orders. The company was telling customers Thursday to expect a two- to three-week wait for orders placed through its online stores. Some buyers feared even longer waits.

Tim Bryant of the Post-Dispatch contributed to this report.

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The price of oil is lower Wednesday, after the government reported that supplies rose last week, as analysts expected.

Gasoline pump prices continued to climb, rising to a national average of $3.811 per gallon.

Benchmark crude fell by 61 cents to $106.10 per barrel in New York. Brent crude, used to price oil imported by U.S. refineries, fell 6 cents to $126.16 per barrel in London.

The Energy Department said that supplies increased by 1.8 million barrels last week payday advance lenders. Gasoline supplies fell by 1.4 million barrels as refineries sold off remaining stockpiles of winter gasoline blends. Supply levels were near analysts’ estimates.

The government also says energy demand remains weak. Demand dropped 5.4 percent for oil and 7.2 percent for gasoline compared with the same week last year.

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Rates to ship iron ore, the second- biggest cargo after oil, are poised to drop to the lowest level in a decade after China cut its growth target, signaling weaker demand from the world

Federal Reserve Chairman Ben S. Bernanke spent six years pushing for an inflation goal. Now that he has it, some investors are betting he

Orders for U.S. durable goods fell in January by the most in three years, led by a slowdown in demand for commercial aircraft and business equipment.

Bookings (DGNOCHNG) for goods meant to last at least three years slumped 4 percent, more than forecast, after a revised 3.2 percent gain the prior month, data from the Commerce Department showed today in Washington. Economists projected a 1 percent decline, according to the median forecast in a Bloomberg News survey.

The expiration at the end of 2011 of a tax incentive allowing full depreciation on equipment purchases may have prompted a slowdown in investment at the start of this year. At the same time, a strengthening auto industry may help keep factories at the forefront of the expansion that began in June 2009.

Oil prices hit a new nine-month high Thursday as the dollar fell and gas pump prices climbed closer to $4 a gallon across much of the country.

Benchmark crude prices rose by $1.55 to end the day at $107.83 per barrel in New York. That’s the highest price since May 4 of last year. Brent crude increased by 72 cents to finish at $123.62 per barrel in London.

The rise in oil prices has helped push retail gasoline prices to record levels for this time of year. Benchmark crude has increased 9 percent so far in 2012, and gas pump prices are up about 5 percent.

Retail gasoline prices added another 3 cents Thursday for a national average of $3.61 a gallon, according to AAA, Wright Express and Oil Price Information Service. A gallon of regular has already topped $4 in California, Hawaii and Alaska. Gasoline is nearly $3.90 per gallon in New York and Connecticut. Analysts think we could see a national average of $4.25 a gallon by April.

The ongoing tension between western nations and Iran is continuing to drive oil prices higher.

Iran, the world’s third-biggest oil exporter, already has cut off shipments to Britain and France, and it may halt exports to other European countries. Iran also has threatened to close the Strait of Hormuz, a crucial waterway in the Persian Gulf through which one-sixth of the world’s seaborne exports flow every day.

Experts doubt Iran will try to dramatically cut shipments, given its dependence on oil sales. About half of the country’s revenue comes from crude. But many investors are snapping up oil contracts in case tensions escalate further.

“The Iranian influence remains as a major driver” in oil prices, independent analyst and trader Jim Ritterbusch said.

In addition to an oil embargo set to start this summer, European Union leaders said Thursday that the EU is preparing regulations that will put further financial pressure on Iran by keeping its banks from using a major financial clearinghouse no fax cash advances.

Oil prices got an extra boost Thursday afternoon as the dollar fell against the euro and other major currencies. Oil is priced in U.S. currency and tends to rise as the dollar falls and makes crude cheaper for investors with foreign money.

Oil prices are higher even though U.S. petroleum demand has been tanking compared to a year ago. The Energy Information Administration said Thursday that demand has dropped 6.7 percent for oil, and 6.1 percent for gasoline. The U.S. remains the world’s biggest oil consumer, but government data show that demand is growing the most overseas in developing countries like China.

Meanwhile, the price of natural gas fell after the government said supplies remain significantly higher than average for this time of year. Natural gas futures on Thursday fell by 2 cents to finish at $2.62 per 1,000 cubic feet in New York.

A boom in North American shale drilling has filled underground storage facilities across the country. The Energy Information Administration says supplies are more than 40 percent higher than the five-year average.

Major natural gas producers recently cut back on production, as prices linger around a 10-year low. But analysts say they’re not doing enough to reduce the glut.

“There’s still an avalanche of gas available right now,” said Gene McGillian, a broker and oil analyst at Tradition Energy.

In other energy trading, heating oil rose 2 cents to finish at $3.29 per gallon and gasoline futures rose by 3 cents to end at $3.11 per gallon.

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The Obama administration will release details tomorrow on its proposal to reduce the 35 percent corporate tax rate and eliminate tax breaks, said administration officials familiar with the plan.

The Treasury Department will outline the proposal, according to the officials, who briefed reporters on condition of anonymity. They didn

Markets were optimistic Monday that Greece will finally secure a massive but long-delayed international bailout, allowing the debt-crippled country to avoid defaulting on its debts next month.

A surprise easing in monetary policy in China over the weekend also added to the buoyant mood in markets _ many stock indexes are trading at multi-month highs, while the euro has recovered its poise.

The main focus of attention _ on a day when Wall Street will be shut for a public holiday _ will be Brussels, where the finance ministers from the 17 eurozone countries are gathering to discuss the elusive Greek bailout deal.

After some eurozone countries suggested last week that they might prefer Greece to default, the latest comments indicate the ministers will approve th euro130 billion ($171 billion) bailout. Greece has struggled to convince its partners in the eurozone, particularly Germany, that it will enact the austerity and reform measures in return for the cash.

France’s finance minister Francois Baroin told Europe 1 radio Monday that while details will have to be worked out, “the political commitments have been made.” Both parties in the Greek coalition government have agreed to push forward the measures in the event they are in government after expected elections in April.

“Officials have confirmed that momentum is building for approval of the deal and that while there are some gaps to be filled, the gaps are not so large that they risk derailing the whole process,” said Sue Trinh, an analyst at RBC Capital Markets.

Alongside the bailout, Greece is expected to conclude debt-reduction discussions with its private creditors. That should slice off around euro100 billion from Greece’s debt mountain. Even after that, Greece will have the highest debt burden of all the euro countries.

One of the last-minute hurdles to overcome is how to get Greece’s debt burden down to around 120 percent of GDP by 2020. One way that target could be met is if European central banks forgo profits due on their holdings of Greek debt.

Even though there are issues that need to be ironed out, investors are confident of a successful conclusion.

In Europe, the FTSE 100 index of leading British shares was up 0.8 percent at 5,952 while Germany’s DAX rose 1.4 percent to 6,944. The CAC-40 in France was 0.8 percent higher at 3,468.

The euro was 0.1 percent higher at $1.3223.

Sentiment has also been boosted by the surprise decision over the weekend by China’s central bank to lower the ratio of funds that banks must hold as reserves to 20.5 percent from 21 percent, effective Friday. That will free up tens of billions of dollars for loans at a time when the growth rate is expected to drop from last quarter’s 8.9 percent to closer to 8 percent. The cut is the second in two months.

Earlier in Asia, Japan’s Nikkei 225 index added 1.1 percent to close at 9,485.09, its highest closing level of the year. South Korea’s Kospi rose slightly to 2,024.90. Mainland China’s benchmark Shanghai Composite Index climbed 0.3 percent to 2,363.60 after gaining more than 1 percent earlier in the day, while the Shenzhen Composite Index gained 0.3 percent to 923.32.

Hong Kong’s Hang Seng dipped 0.3 percent to 21,424.79.

In the oil markets, Iran was battling with Greece to be the main focus of attention. Oil prices have jumped to a nine-month high near $105 a barrel Monday after Iran said it halted crude exports to Britain and France in an escalation of a dispute over the Middle Eastern country’s nuclear program.

Benchmark crude was up $1.50 to $104.74 per barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Earlier in the day, it rose to $105.21, the highest since May.

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Pamela Sampson in Bangkok contributed to this report.

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I did a double take when I recently saw a pile of blank VHS tapes for sale at a local Blockbuster store that was closing.

Granted those videotapes were only a tiny sliver of the store’s inventory being liquidated. But it seemed to me an irresistible metaphor for the anachronism that bricks-and-mortar video rental stores have become in the age of Redbox and Netflix.

Now movie rental chain stores are becoming an even rarer breed in St. Louis.

I made a round of calls to local Blockbuster stores this week and found that 10 out of 26 locations — including stores in Collinsville, St. Ann, and O’Fallon, Mo. — are in the process of closing.

Dish Network, which bought Blockbuster at a bankruptcy auction last year, has been fairly quiet about this current wave of store closings. When it first took over, Dish said it would keep open about 1,500 stores — or about 90 percent of the outlets.

But last month, the company told Reuters that it would shutter more stores than originally planned with some of those locations becoming customer-service points for Dish’s satellite TV services.

The company would not provide a list or a number of the stores that are closing.

“We remain committed to maintaining only those stores that we believe we will be able to operate profitably,” Danielle Johnson, a Dish spokeswoman, wrote in an email. She added that the company continues to focus on its mail rental service and a streaming service package available to satellite customers.

Of course, it should come as no surprise that physical movie rentals are on the decline as video on demand and streaming subscription services such as Netflix continue to gain traction.

According to the Digital Entertainment Group, movie rental sales in bricks and mortar stores plummeted 29 percent last year.

“My guess is at some point you’ll just have a kiosk model and the digital model and they will have a peaceful coexistence,” said Russ Crupnick, an analyst with the research firm The NPD Group.

But in the meantime, he expects there to continue to be a market — albeit a shrinking one — for DVD rentals. Redbox will pick up a lot of that demand. But Blockbuster can still be a player with its more extensive in-store selection compared to Redbox’s limited titles, he said.

“I think we’ve all stared at a kiosk and said, ‘Gee, there’s nothing here I want to watch,’” he said. “But at Blockbuster, you can always go in and say, ‘OK, I’ll watch ‘The Bodyguard’ again.’”

Among those perusing the store closing sale at the Blockbuster location on Lindell Boulevard earlier this week were St. Louis University seniors Tim Hoffman and Arthur Hermann.

Hermann used to regularly rent movies at Blockbuster until he and his friends started using Netflix’s streaming service about a year ago.

“That’s the only way I watch movies now,” he said.

Hoffman said he would miss Blockbuster’s movie sales, but he didn’t seem too heartbroken about the store’s demise. After all, he added, there are two Redbox locations just around the corner.

END IS NEAR FOR CRESTWOOD SEARS

The red and yellow “inventory blowout” signs are up around the Sears store in Crestwood Court.

This store is one of 80 nationwide that Sears said in December that it would shutter amid struggling sales. Still to come is the announcement of another 20 to 40 stores that the company will close.

Sears recently filed a notice with the state that the Crestwood store’s 102 employees could be laid off as soon as April 15. But Kim Freely, a Sears spokeswoman, said that a store closing date has not yet been set and that it could be later than that.

“When the store closes will be based on the needs of the liquidator and the needs of the store,” she said.

Earlier this week, sale prices around the store ranged from 15 percent off most appliances to 30 percent off clothing. But you can bet the discounts will get sweeter as the closing date nears.

Meanwhile, the fate of the rest of Crestwood Court remains unknown. The mall, of course, is mostly vacant. Many of the artists who have filled some of the empty storefronts in the last couple of years have to leave by the end of the month.

And now the mall’s website notes that it will be limiting hours and access to several areas starting March 1 because of the “pending redevelopment.”

But it’s unclear where those redevelopment efforts stand. The mall’s owner — Centrum Properties — had indicated it would present redevelopment plans to the city at the end of 2011 or early 2012, said Petree Eastman, Crestwood’s city administrator. But she said this week that she hasn’t heard a peep of late about when those plans might be presented to the city.

“I believe the Sears’ closure has changed the game a little bit and has probably affected how their numbers are working out,” she said.

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U.S. stock futures are slightly higher on hopes that Greece would soon get its crucial second bailout and following another batch of upbeat U.S. economic news.

Investors are growing more optimistic that European finance ministers will sign off on the Greek bailout and a bond swap agreement with Greece’s private creditors on Monday.

Dow Jones industrial futures are up 33 points to 12,903. The broader S&P 500 futures are up 2 points at 1,357. Nasdaq 100 futures are up 2 points at 2,595 instant credit reports.

Sentiment in the markets has been further buoyed by more positive U.S. economic data, particularly in the jobs market. Figures released Thursday showed jobless claims fell last week by 13,000 to 348,000, the lowest level since February 2008.

Most European and Asian markets rose Friday.

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