IN BRIEF
BEIJING
China moves to cool economy by again curbing bank lending
China moved to curtail bank lending Friday for the second time in a month in the latest effort to cool down its supercharged economy.
Chinese leaders worry that a stimulus-driven torrent of lending is fueling a dangerous bubble in stock and real estate prices. They also are concerned that the flood of money surging through the economy is adding to inflation.
Beijing declared that China had emerged from the global crisis after economic growth rebounded to 10.7 percent in the final quarter of 2009. But authorities say the global outlook is still uncertain, and analysts expect them to try to avoid rate hikes even as they start winding down their stimulus.
Banks were ordered Friday to increase reserves by half a percentage point -- to 16.5 percent for large lenders and to 14.5 percent for smaller institutions.
Rural lenders that serve farmers were exempted to guarantee adequate credit for agriculture.
FRANKFURT
Different spending tacks may worsen European crisis
With Greece overdrawn and no one eager to foot the bill, Europe's messy debt crisis has exposed a fundamental weakness among the 16 countries that share the euro: different and often diametrically opposed approaches to spending don't make for a happy union.
By telling Greece they stand shoulder-to-shoulder as it struggles to rein in a runaway deficit and impose severe austerity measures, but offering little more than moral support, the European Union's biggest hitters -- Germany and France -- only slowed the market contagion afflicting Greece, and did not cure it.
As a result, analysts, politicians and observers contend, that may brake momentum for countries like Latvia adopting the beleaguered euro. More broadly, it could force Europe, already in a winter of growing discontent, to reconsider how much of a union it really wishes to be.
Its spending rules -- limiting deficits to 3 percent of economic output -- have turned out to be more an honor system than a fiscal anchor.
DALLAS
American Airlines asks U.S. to work more closely with JAL
American Airlines said Friday it has asked U.S. regulators to let it work more closely with Japan Airlines without violating antitrust laws.
The two airlines already sell seats on each other's flights. Antitrust immunity would let them go further, even working together to set prices and schedules.
American said it asked the U.S. Transportation Department for an exemption to antitrust laws to cooperate with Japan Airlines on trans-Pacific routes.
The move to seek antitrust protection was expected since financially troubled Japan Airlines announced this week that it would maintain and deepen ties with American instead of jumping to an alliance of carriers led by Delta Air Lines Inc.
NEW YORK
U.S. industrial stocks fall after China works to slow economy
Industrial stocks stumbled Friday after China said it would take more steps to keep its economy from growing too fast.
The Dow Jones industrial average closed down 45 points but had fallen as much as 160 points. Shares of three Dow stocks with extensive business overseas -- Alcoa, Boeing and General Electric -- all fell more than 1 percent.
Regulators in China are trying to keep the nation's rapid economic growth from getting out of hand. But investors worry that a slowdown in China could disrupt a U.S. recovery by hurting exports and profits of companies that do business there.
The Dow fell 45.05, or 0.4 percent, to 10,099.14. The Standard & Poor's 500 index dropped 2.96, or 0.3 percent, to 1,075.51, while the Nasdaq composite index rose 6.12, or 0.3 percent, to 2,183.53.
For the week, the Dow and the S&P 500 index each rose 0.9 percent while the Nasdaq jumped 2 percent.
U.S. markets will be closed Monday for Presidents Day.
MINNEAPOLIS
Airlines' on-time performance in 2009 is best in six years
Last year airlines turned in their best on-time performance since 2003. They were helped by fewer flights, a little schedule padding and a greater focus on improving their operations.
The Transportation Department said on Friday that airlines averaged a 79.5 percent on-time arrival rate in 2009. Flights count as on-time if they arrive less than 15 minutes late.
Among the largest carriers, Southwest Airlines had the best record, with 83 percent of its flights on time. United was tops among the big traditional carriers, with 81 percent of flights on-time.
NEW YORK
To raise phone market position, Microsoft to revamp software
Microsoft Corp. is expected to announce a major revamp of its phone software Monday, in an attempt to regain momentum in a crucial market where it's been overshadowed.
CEO Steve Ballmer will be speaking at Mobile World Congress in Barcelona, Spain, the world's largest cell phone trade show, and analysts expect him to reveal Windows Mobile 7.
The software could be in phones by late this year.
The new software comes as Microsoft, dominant when smart phones were young, has taken a back seat to Research in Motion Ltd.'s BlackBerrys among corporate users and Apple Inc.'s iPhone among consumers.
OMAHA, Neb.
Berkshire Hathaway closes deal for railroad company
Warren Buffett's company completed its largest acquisition ever Friday when it bought Burlington Northern Santa Fe Corp.
Berkshire Hathaway Inc. also joined the S&P 500 and S&P 100 stock indexes after Friday's close of the markets because as part of the BNSF deal, the Omaha-based company gained liquidity by issuing new shares and splitting its Class B shares 50-for-1.
The deal also created an opening in the S&P indexes because Berkshire bought one of the nation's largest railroads.
The stock index news helped Berkshire's stock post significant gains since it was announced Jan. 26.
Berkshire Hathaway Inc. paid roughly $100 per share in cash and stock for the 77.4 percent of BNSF shares that it didn't already own.
Burlington Northern shareholders, who controlled about 70 percent of the shares Berkshire didn't already own, voted Thursday to support the deal. That vote was the last hurdle for the deal.
MIAMI
Federal judge orders two acquittals in Stanford case
A federal judge has ordered the acquittal of two former employees of disgraced financier Allen Stanford on charges that they illegally shredded thousands of company documents.
U.S. District Judge Richard W. Goldberg cited insufficient evidence Friday in Miami in the case against ex-Stanford employees Thomas Raffanello and Bruce Perraud. The judge's order came on the second day of jury deliberations.
Raffanello and Perraud faced up to 50 years in prison if convicted of conspiracy, document destruction and other charges.
Defense attorneys had argued that all records were backed up electronically.
Raffanello was previously chief of Miami's Drug Enforcement Administration office.
Stanford is awaiting trial in Houston.
NEW YORK
Hi, this is Tina Fey, read my profile in Vogue and subscribe
Vogue subscribers may have noticed an e-mail from Tina Fey in their inboxes. The fashion magazine mailed a note from the actress promoting her cover story for its March issue.
Vogue said that Fey used her self-deprecating humor to describe her Vogue experience. She compared it to things you might expect to only see once in your lifetime -- Haley's Comet or the eruption of Mount St. Helen's volcano.
The promotional e-mail includes links to renew a Vogue subscription and to give one as a gift.
This isn't the first time the magazine has sent out an e-mail on behalf of a celebrity cover model.
A similar message went out from Jessica Biel to promote her February 2010 cover.
The March 2010 issue of Vogue goes on sale Tuesday.
