Business news in brief

Housing affordability in January reached its highest levels since record-keeping began in 1970, the National Association of Realtors reported Tuesday. The index used to track affordability is based on the relationship among median home price, median family income, and average mortgage interest rate. Fixed 30-year interest rates are below 4 percent, and median home prices have declined to pre-housing boom levels.

- Alan J. Heavens

Chester County Hospital and Health System in West Chester trimmed its workforce by 45, or 3 percent, last week "in response to downward pressure on health care revenues across the industry," according to a statement. The hospital, with 218 staffed beds, reported a small 1 percent increase in revenue, to $114 million from $112.8 million for the six months ended Dec. 31, according to bond disclosure documents. Over the same period, the hospital's operating profit fell 12.6 percent. - Harold Brubaker

The main Atlantic City casino workers union has ratified a new contract with the Atlantic Club. Workers belonging to Local 54 of the Unite-HERE union voted overwhelmingly for the deal. Terms were similar to those in contracts reached in recent months with other Atlantic City casinos, calling for modest raises and successfully fighting off management demands that workers contribute for the first time to their pension and health insurance costs. The three-year contract covers 600 cooks, housekeepers, bartenders, cocktail servers and other service workers. Local 54 has now reached new contracts with eight of Atlantic City's 11 casinos.
- AP

The owner of The Times Leader newspaper in Wilkes-Barre has been acquired by a Philadelphia-based investment firm. Impressions Media said Monday that it was purchased by Versa Capital Management L.L.C. Terms were not disclosed. Impressions operates The Times Leader as well as several community papers, websites and digital media businesses in Northeastern Pennsylvania. Veteran Times Leader executive Prashant Shitut was named president and CEO of the media company.  Versa Capital Management L.L.C. has diverse investments in manufacturing, food service, and media. - Inquirer staff

President Obama said Tuesday that homeowners with FHA-insured mortgages endorsed on or before May 31, 2009, who choose to refinance their loans to record low rates would see upfront and annual premiums reduced when they do. Effective for existing FHA loans refinanced starting June 11, the upfront premium will fall from 1 percent to 0.01 percent of the base loan amount, FHA acting commissioner Carol Galante said. The annual premium will decline to 0.55 percent. Last week, the Federal Housing Administration announced premium increases for new loans, beginning April 1. To take advantage of the program, borrowers must be current on their mortgages. Borrowers could save $3,000 a year. - Alan J. Heavens

Food and Drug Administration officials have issued a warning letter to the makers of the inhalable caffeine product AeroShot, saying they have questions about its safety and concerns about how children and adolescents may use it. AeroShot went on the market in January in Massachusetts and New York. Consumers put one end of the plastic canister in their mouths and breathe in, releasing a fine powder that dissolves. The FDA said the Massachusetts company misled consumers by saying the product can be both inhaled and ingested, which is not possible. The agency said it is concerned consumers may try to inhale it into their lungs, which may not be safe. - AP

Qualcomm Inc., the world's biggest maker of mobile-phone chips, said it plans to buy back as much as $4 billion of shares and raise its dividend by 16 percent to return cash to shareholders as earnings increase. The quarterly cash dividend will expand to 25 cents, from 21.5 cents, San Diego-based Qualcomm said Tuesday. The buyback authorization replaces a $3 billion program, which had $948 million of repurchase authority remaining. Last month, Qualcomm increased sales and profit targets for this year on rising demand for smartphones.

- Bloomberg News

Gasoline prices finally dropped after 27 straight days of increases. The nationwide average for regular unleaded slipped less than a penny, to $3.764 per gallon. That ended a streak of price hikes that began on Feb. 8. Pump prices rose by more than 28 cents per gallon during that period, making gasoline the most expensive ever for this time of year. But the relief at the pump should be temporary. Experts predict gasoline prices will rise over the next several weeks. - AP

Verizon Wireless on Tuesday announced a version of its wireless broadband service that's designed for use in rural and remote homes that can't get DSL or cable. The service, called HomeFusion, could also appeal to some households where DSL is the only fixed-line option, since it is faster than most DSL services. HomeFusion could provide potent competition for satellite broadband providers, which are often "providers of last resort" for rural homes. The service requires the installation of a cylindrical antenna on an outside wall. The hardware costs $200, but installation is free. - AP

Google's digital marketplace for mobile applications, music, movies and books is unifying under a new name in an effort to spruce up the shopping experience. Beginning Tuesday, the Android Market will be known as the Google Play Store. Google's eBookstore and recently launched music service will also be part of the Google Play Store. The same selection of books, music and movies was already available at Android Market. The rebranding will be ushered in with a series of tweaks designed to make it easier for customers to manage content and navigate from one section of the store to another. None of the changes will affect the digital content. - AP

The European Union said Tuesday it is investigating whether a trans-Atlantic venture involving Delta, AirFrance-KLM, and Alitalia Airlines violates antitrust rules and keeps passengers from getting the best prices. The three airlines are members of the broader SkyTeam alliance. In 2009 and 2010, the three signed agreements establishing the venture, in which they share capacity, schedules, pricing and revenue management on routes between North America and Europe, the EU statement said. Regulators noted that without the venture, the parties would compete, which could in theory lead to lower ticket prices. - AP

Apple Inc. is expected to reveal a new iPad model on Wednesday, with a sharper screen and perhaps an option for faster wireless broadband. The upgrades are relatively minor, but the iPad is secure in its position as the king of tablets. Apple has kept the features of the new device secret. - AP