US likely to OK airline agreements

US likely to OK airline agreements

MINNEAPOLIS

U.S. regulators say they are likely to approve antitrust immunity for two major airline alliances carrying travelers to Asia.

The tentative approval from the Transportation Department on Wednesday would let American Airlines and Japan Airlines coordinate routes and schedules and share revenue on flights across the Pacific. A similar arrangement between United Continental Holdings Inc. and All Nippon Airways also won tentative approval.

The government says the arrangements should lead to lower fares and increased service.

The news came the same day that American Airlines, a unit of AMR Corp., and British Airways and Iberia launched their trans-Atlantic joint business.

Housing slump hits tax revenues

WASHINGTON

City-tax revenues dropped this year by the most in 25 years, hit hard by falling home prices that could crimp local budgets for years to come.

Property-tax revenue in U.S. cities fell 1.8 percent in fiscal year 2010, according to a report released Wednesday by the National League of Cities. It’s the first drop in the 25 years that the survey has been conducted.

Depressed home values are just beginning to affect property-tax receipts, and the impact could linger for at least two more years, the report said.

IMF: Emerging nations lead growth

WASHINGTON

China and other emerging nations are lifting the global economy, but their strength threatens to come at the expense of the United States and Europe.

The emerging countries are benefiting from low-priced exports fueled by artificially low currencies. That’s raising the prospect of trade frictions for years to come.

In its latest economic forecast, the International Monetary Fund predicts the world economy will expand 4.8 percent this year and 4.2 percent next year. That would far surpass last year’s 0.6 percent decline, the worst performance since World War II.

Growth in China is forecast to be 10.5 percent this year and 9.6 percent next year. Brazil’s economy is expected to grow 7.5 percent this year before slowing to 4.1 percent next year.

But the IMF forecast, released Wednesday, points to lingering weakness in the United States and Europe after the worst recession in decades.

The agency said that the global economy will require a balancing act: Countries with huge trade and budget deficits such as the United States will need to boost exports. And countries with big trade surpluses such as China must reduce their dependency on exports and boost domestic demand.

Associated Press