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Consumer Prices in U.S. Increase More Than Forecast
The cost of living in the U.S. rose more than forecast in February, easing concern that the inflation rate will fall below the Federal Reserve’s preferred level. The consumer price index rose 0.4 percent after a 0.3 percent increase in January, the Labor Department said today in Washington. Excluding food and fuel, the so-called core rate climbed 0.2 percent for a second month. Fuel, clothing and automobile costs led the advance last month.
Airbus, Boeing Must Slash Output or Boost Funding, Lessors Say
Airbus SAS and Boeing Co. (NYSE:BA) must slash production or risk having to finance jet sales themselves as credit tightens, according to International Lease Finance Corp., the biggest aircraft lessor by fleet value. With record backlogs of 3,715 planes at Airbus and 3,633 at Boeing, work is booked solid for eight years and the companies say build rates won’t tumble even after a slump in flying that picked up pace last September as the collapse of Lehman Brothers prompted businesses to curb travel budgets.
IBM reportedly in talks to buy Sun Microsystems
International Business Machines Corp. (NYSE:IBM) is in talks to buy Sun Microsystems (NASDAQ:JAVA) for at least $6.5 billion in a deal that would put hardware back at the core of Big Blue’s operations and bolster its computer-server business, according to a published report.
Fund managers most optimistic in three years
Fund managers are their most optimistic about the outlook for the global economy since late 2005, thanks to renewed hopes for growth in China, though risk appetite has deteriorated, according to Merrill Lynch’s monthly survey. The number of managers expecting economic growth over the next 12 months exactly balanced the number expecting a further contraction, the survey found. That compares to a net 24% expecting a contraction at the start of the year.
China Rejects Coca-Cola, Huiyuan Deal
China’s government rejected Coca-Cola Co.’s(NYSE:KO) $2.4 billion bid to acquire one of China’s largest juice makers, saying the deal — which would have been the largest-ever foreign takeover of a Chinese company — would unduly restrict competition.
British Unemployment Rises Most Since at Least 1971
More Britons joined the jobless rolls than at any time since 1971 as the recession destroyed work in factories, building sites and banks, threatening to further erode Prime Minister Gordon Brown’s popularity. The jobless figure rose 138,400 to 1.39 million, the Office for National Statistics said today. That’s more than the population of Cambridge and compares with the increase of 84,800 forecast by a Bloomberg survey of 20 economists.
Iran’s Cheap Goods Stifle Iraq Economy
Brick-factory owner Dhary al-Shimary is thinking of calling it quits after 30 years in business, even though Iraq’s demand for bricks has never been higher. From bricks to buses to rice, Iranian imports have poured into markets across war-torn Iraq. The goods are providing Iraqis with many cheap products they otherwise can’t afford or make themselves. But they’re also undermining local industries that are struggling to compete at a time when job creation is a top priority for both Baghdad and Washington.
Hedge Funds May Get AIG Cash
Some of the billions of dollars that the U.S. government paid to bail out American International Group Inc. (NYSE:AIG) stand to benefit hedge funds that bet on a falling housing market, according to people familiar with the matter and documents reviewed by The Wall Street Journal. The documents show how Wall Street banks were middlemen in trades with hedge funds and AIG that left the giant insurer holding the bag on billions of dollars of assets tied to souring mortgages.
