A person briefed on the matter said Wednesday that a Chinese automaker is considering buying Ford Motor Co.’s Volvo unit. The person said Beijing Automotive Industry Holding Co. is taking a look at Volvo, and is expected to meet with executives at Volvo’s Gothenburg, Sweden, headquarters. The person spoke on condition of anonymity because the discussions are private. Beijing Automotive would be one of three or four companies that have expressed interested in Volvo. It’s unclear how interested Beijing Automotive is in Volvo, the source said. Dearborn, Mich.-based Ford said last year that it wants to sell the unit so that it can focus its efforts on three core brands: Ford, Lincoln and Mercury.
U.S. trade deficit continues to climb
The U.S. trade deficit edged up in April but likely will remain well below last year’s pace as the global recession dampens demand for both foreign goods and U.S. exports such as automobiles and heavy machinery. Analysts said rising prices of imported oil likely won’t widen the trade gap significantly later this year. That’s because higher oil prices are expected to coincide with an improved global economy. So exports of U.S. goods also would rise. The Commerce Department said Wednesday that the deficit rose for a second straight month in April, climbing 2.2 percent to $29.2 billion. That was slightly higher than economists’ expectations.
Home foreclosures rise across the nation
The number of U.S. households on the verge of losing their homes to foreclosure continues to rise, but the annual increase in May was the smallest in nearly three years. Foreclosure filings rose nearly 18 percent in May compared with the same month last year, RealtyTrac Inc. said Thursday. It was the smallest yearly gain since June 2006, and a 6 percent decline from April. But don’t expect a quick end to the foreclosure crisis. Foreclosures are likely to remain elevated this year and into 2010 as layoffs become the main reason that borrowers default on their home loans. Many economists expect unemployment, now at 9.4 percent nationwide, to rise as high as 10 percent, and some project it will exceed the post-World War II record of 10.8 percent.
Home Depot profits expected to improve
Home Depot Inc. said Wednesday that its full-year earnings from continuing operations may come in better than previously forecast, thanks to a combination of individual homeowners spending more and stronger overall sales. The nation’s largest home improvement chain issued the rosier forecast weeks after smaller rival Lowe’s Cos. raised its full-year outlook after reporting its first-quarter results in mid-May. Atlanta-based Home Depot expects earnings per share from continuing operations to be flat to down 7 percent. In February, the retailer forecast a 7 percent decline.
From Herald news services
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