The World Trade Organization gave the go-ahead Friday for punitive sanctions on U.S. exports from lobsters to industrial equipment because Washington has yet to comply with a 2-year-old order to repeal a trade law that uses penalties collected from foreign manufacturers to aid their domestic rivals. The European Union and other plaintiffs sought formal WTO authorization to retaliate by imposing new duties against various U.S. products.
All-time low for dollar against euro
The dollar reached a new all-time low against the euro Friday for the fourth straight day, briefly pushing the European currency above $1.33 before recovering slightly, amid concerns about the twin U.S. deficits and the lack of any central bank action to stop the dollar’s decline. The dollar also dipped to a nearly five-year low against the yen, slipping to 102.56 yen Friday, down from 102.81 late Wednesday in New York. On Friday, the euro rose to $1.3329 in early trading before dipping back to $1.3290.
New deal with GE helps U.S. Airways
US Airways Group Inc. said Friday it has reached agreement with General Electric Co. on aircraft leasing and financing terms that will help the airline lower costs and reduce debt as it seeks to avoid liquidation. The airline will also have to do more cost cutting on its own. The deal will provide the Arlington, Va.-based airline, now operating under bankruptcy protection, with $140 million in short-term liquidity and the deferral of aircraft debt and lease payments due over the next six months.
Steel shortage slows Nissan factories
Japan’s Nissan Motor Co., struggling to keep its factories churning out cars amid a steel shortfall, has asked South Korean steel maker Posco to boost shipments, a Posco official said Friday. The Tokyo-based automaker said Thursday it will halt operations at three of its plants in Japan for five days starting later this month because of the steel sheet shortage from Japanese suppliers and unexpectedly strong demand for Nissan’s newest cars.
Sharing software goes on trial
The next chapter in the global legal battle between the recording industry and file-sharing services is due to unfold here Monday when the owners of the hugely popular Kazaa software stand trial on civil copyright infringement charges. Kazaa’s owners, Sharman Networks Ltd., insist that while they urge users not to commit music piracy, they have no control over what people do with the popular “peer-to-peer” software they provide. With Kazaaa, users freely share music, movies and other media.
From Herald wire services
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