BUSINESS BRIEFS
Fed likely to hold rates steady amid difficult economy
Associated Press
WASHINGTON — An ugly brew of rising unemployment, spiking foreclosures and gyrating energy prices is plaguing the country and making life difficult for Federal Reserve Chairman Ben Bernanke as he tries to right the economy.
Bernanke and his central bank colleagues are faced with dueling problems: weak economic growth and advancing inflation. To treat one risks aggravating the other. So the Fed is widely expected when it meets tomorrow to leave a key interest rate alone.
"It is caught between a rock and a hard place. The (Fed) will stand pat," predicted Sung Won Sohn, an economics professor at California State University Channel Islands.
If Sohn and other economists prove correct, the Fed's rate will stay at 2 percent. And, in turn, the prime lending rate for millions of consumers and businesses would stay at 5 percent.
VERIZON LABOR TALKS CONTINUE
NEW YORK — Verizon Communications Inc. and two unions representing some 65,000 of its workers remained in talks after agreeing to "stop the clock" on contracts that were set to expire at 12:01 a.m. yesterday.
The company expects "business as usual" today as talks continue, Verizon spokesman Eric Rabe said late yesterday.
Major bargaining issues include healthcare coverage for employees and retirees, wages and union representation for new job areas.
One of the unions, the Communications Workers of America, said earlier yesterday a strike had been postponed "in light of progress that has been made" in the negotiations.
The CWA, which represents about 50,000 workers, said the current contracts remain in effect as talks continue. The other union is the International Brotherhood of Electrical Workers.
ATLANTA AIRPORT BUSIEST IN WORLD
ATLANTA — Atlanta's Hartsfield-Jackson, which served 89 million passengers last year, was the world's busiest airport in 2007, says Geneva-based Airports Council International in a report released last week. Chicago O'Hare ranked second, with 76 million.
London Heathrow, with 68 million, was the busiest non-U.S. airport. Counting only international traffic, the world's five busiest airports are London Heathrow (62 million), Paris Charles de Gaulle (55 million), the Netherlands' Amsterdam (48 million), Germany's Frankfurt (47 million) and Hong Kong (46 million).
VALE SHELLS OUT $1.6B FOR ORE SHIPS
SAO PAULO, Brazil — Brazilian mining company Vale has placed a $1.6 billion order for 12 huge iron ore carriers from China's Rongsheng shipbuilder, and the vessels will be the biggest of their kind in the world, Vale said yesterday.
Companhia Vale do Rio Doce SA said in a statement that the ships will be used to create a "dedicated route" to ship the company's iron ore from Brazil to Asia, a key market where iron ore is used as the main raw ingredient for steel production.
CHRYSLER RENEWS LINES OF CREDIT
AUBURN HILLS, Mich. — Chrysler LLC said yesterday its financial unit had renewed lines of credit totaling $24 billion that will fund the automaker's dealers and its financial services business.
Chrysler Financial initially sought $30 billion but reduced the amount "due to conditions in the credit markets and changes in the company's retail strategy," the company said in a news release.
Last month, Chrysler said its financial arm was getting out of the auto leasing business because economic conditions have made leasing more expensive than buying, for both consumers and the company.
