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May 6, 2005
Jobs Growth Was Surprisingly Robust in April
U.S. employers created a surprisingly large 274,000 new jobs in April
and added more workers in each of the two preceding months than first
thought, the Labor Department said today in a report that may ease fears
about economic growth, Reuters reported. The April jobs total far
outstripped Wall Street economists’ expectations for 170,000 new
jobs. Further underlining the surge, the government said 93,000 more
jobs were created in February and March than it previously reported.
Delta’s Chief Calls for Wide-ranging Aviation Policy
Gerald Grinstein, Delta Airlines CEO, called yesterday on federal
officials to establish a comprehensive aviation policy that would offer
the companies specific guidelines in areas like bankruptcy, mergers,
fuel prices and taxation, the New York Times reported. But
industry analysts say the airlines may not get the help they are
seeking, because there is not a place within government for one-stop
policy shopping. At the same time, with the government already involved
in the airline industry through costly measures including pension
bailouts and federal loan guarantees, there may be a reluctance to offer
more assistance.
MCI Cuts Costs to Narrow Loss; Sales Slide 12 Percent
MCI Inc., which this week reaffirmed its agreement to merge with
Verizon Communications Inc., said yesterday that it had sharply reduced
its losses even as sales slipped across the company in the first
quarter, the Washington Post reported. The company cut
costs most dramatically in its mass-markets division, which is
overseeing the company’s exit from the consumer telephone
business. That helped MCI reduce its overall losses to $2 million (1
cent a share), compared with a $388 million loss ($1.19) in the first
quarter last year.
$60 Million Bankruptcy Bonanza
In one of the largest bankruptcies in Maryland history—a
multibillion-dollar series of cases filed by companies affiliated with
California’s Pacific Gas & Electric Co.—more than a
dozen firms have billed $60 million in legal fees over the last year and
a half, the Legal Times reported. Read the full article at
href='http://www.law.com/jsp/article.jsp?id=1115111124564'>http://www.law.com/jsp/article.jsp?id=1115111124564.
Casinos Linked to Bankruptcy
Gambling addicts file 25 percent of all bankruptcies in Iowa,
kwwl.com reported. Researchers say that ends up costing families about
$220 a year. Counselors say part of the problem is people who need help
the most aren’t getting it and they choose bankruptcy over
counseling. Read the full article at
href='http://www.kwwl.com/Global/story.asp?s=3302597'>www.kwwl.com/Global/story.asp?s=3302597.
Buehler Grocery Chain Files for Bankruptcy Protection, Two Local
Stores to Close
Buehler Foods Inc., which owns and operates more than 60 grocery
stores in five states, has filed for bankruptcy protection, citing
delays in assuming control of 16 Winn-Dixie stores the company bought
last year, WAVE3.com reported. The Jasper, Ind.–based grocery
chain owes between $200 million and $400 million to 572 creditors known
to date, according to records filed on Wednesday in the U.S. Bankruptcy
Court in Evansville, Ind.. Read the full article at
href='http://www.wave3.com/Global/story.asp?s=3304949'>www.WAVE3com/Global/story.asp?s=3304949.
Credit Rankings of GM and Ford Lowered to Junk
General Motors and Ford Motor lost their investment grade ratings
yesterday, pushing two of corporate America’s biggest borrowers
into the ranks of junk bonds, the New York Times reported.
The downgrading by Standard & Poor’s reflects the inability of
GM and Ford to make enough cars that people will buy without $5,000
rebates and other sales incentives, as well as worries that the two
automakers may not emerge anytime soon from their troubles, starting
with eroding earnings and sliding sales.
GE Will Restate Earnings for 2002–04
General Electric Co. said today it will restate financial results for
the years 2002 through 2004, certain financial information for the year
2001 and each quarter in 2003 and 2004—resulting in an earnings
increase of $381 million from 2001 through the first quarter of 2005,
the Associated Press reported. The company said the non-cash restatement
represents less than six-tenths of one percent of GE’s earnings
over this period.
Northwest Airlines to Buy 18 of Boeing’s Dreamliners
Northwest Airlines Corp. is buying 18 Boeing 787 Dreamliners and will
become the first North American carrier to put the fuel-efficient,
long-range planes into service, the company said yesterday, the
Associated Press reported. The Eagan, Minn.–based carrier said
that it will take initial deliveries of the 787s in August 2008 and that
it holds options and purchase rights for an additional 50.
JPMorgan to Settle Oklahoma Case for $356 Million
JPMorgan Chase & Co. said on Thursday it had agreed to pay $356
million to settle investor lawsuits related to the failure of Commercial
Financial Services Inc., Reuters reported. In a securities filing, the
bank also said the U.S. Securities and Exchange Commission may sue a
former Bank One employee for securities violations in connection with
the collapse of National Century Financial Enterprises.