BP application judge dismiss the many claims of oil spill

NEW ORLEANS - BP PLC asked a federal judge to dismiss most of court claims filed against the oil giant by companies and individuals who say that they have suffered economic damage from the massive Gulf oil spill last year.

U.S. District Judge Carl Barbier did not immediately rule Thursday after motions hearing to dismiss the claims against BP and other companies who have been prosecuted on the oil spill caused by the explosion on the Horizon in water deep drilling.

BP argues Barber should reject thousands of maritime and the law of the State claims for economic by commercial fishers, landowners and other losses because they are excluded by the 1990 Oil Pollution Act.

Counsel for the applicants dispute that the Act of 1990 is the only vehicle for resolving these claims.

The economies of the world grow more slowly (AP)

WASHINGTON - from the United States, Europe and even China's booming, the global economy shows signs of strain.

Most of the major economies should continue to grow. But the evidence is mounting that many around the world are striving to develop as quickly as they did last year.

European governments are faced with debts and squeezed budgets. The British economy grew just at the beginning of the year. Even the strongest economy of Europe, Germany, may face a slowdown.

High unemployment, real depressed and still high oil prices are slowing of the US economy, which grew at an annual rate of lean 1.8% from January to March. And after its earthquake of Earth and the nuclear crisis, the Japan sank into a recession.

In China, increases in interest rates to reduce inflation are slowing growth.

Overall, the world economy probably pass only 3.5 per cent this year, down 4.1% in 2010, according to research firm IHS Global Insight. IHS has reduced that 3.8% forecast.

As the meeting of the leaders of the rich democracies group of eight in Paris, world growth is on an agenda already filled with concerns about instability in the Middle East, the Greece debt crisis, which will be the next leader of the Monetary Fund International. It is not a priority objective, the meeting though.

"The euro is a big mess, and the Europeans do not want to talk about, said Simon Johnson, a former Chief Economist of the IMF."

The most serious such problems exist in Greece, Spain, Portugal and Ireland, who are overwhelmed by debts run up during the financial crisis and the recession that followed.

Financial markets were signaling concerns about a slowdown in the world. Dow Jones index has shed 450 points, or 3.5 per cent this month. Stocks slid 3 percent or more this month at the Japan, Britain and Hong Kong.

The Chief Economist, IHS Nariman Behravesh said "three winds are hitting the world economy at the same time":

? The high commodity prices. Despite a recent dip, oil prices are still up to 50 percent over the past year. These awards have pressed the household budget in the United States and other wealthy countries and impeded consumer spending. Increase in food prices are hurting the middle class and the poor around the world.

? Cut Government's budget. Many European countries had to cut spending after the financial crisis to enlarge their budget deficits. Britain last year, cut spending and raised taxes, stifling the economy. The British economy were living off just 0.5% growth in the quarter from January-March, after narrowing from October to December of last year.

The ? Japan earthquake and Earth crisis. After production of the plant has been disrupted, contracted to a 3.7% annual pace in the first quarter. It will probably contract an additional 3.7% in the quarter April-June, according to the Organization for economic cooperation and development.

"The highest degree of uncertainty lies in the effects of the disaster on the economy of the Japan," Bank of Japan Governor Masaaki Shirakawa said in a speech this week in Tokyo.

Economists expect the Japan economy to rebound in the second half of the year. Reopening factories and in the quake zone reconstruction projects should create jobs.

The US economy should accelerate in the coming months. Hiring more will be to encourage consumers to spend more. Companies are expected to dip in profits to expand. And having shed bad loans of financial crisis, banks will likely lend more to companies and consumers.

Still, economists are more concerned about China. Four increases the interest rates since October have not yet do much to cool inflation in China, which runs more than 5%. Goldman Sachs this week cut its forecast of growth of China 9.4%, rising from 10% this year, and 9.2% of 9.5% in 2012.

By increasing rates and other measures taken to strengthen bank loans, Beijing wants to slow down the growth of 7% this year to stem inflation. Some fear that controls Beijing, combined shortages of power in some manufacturing sectors, are Direction of China into an economic disaster. But most analysts expect China to tame inflation without wrecking the economy.

Other countries growing, such as the Brazil and the Turkey, are also trying to slow growth to control the rising inflation.

U.S. exporters had been counting on robust procurement in developing countries to compensate for mediocre growth at home. These expectations may need to be reduced.

"A hard landing for emerging markets could significantly reduce the global economic recovery," said Eswar Prasad, Professor of trade policy at Cornell University. "They were the main drivers of global growth as a result of the financial crisis".

Michael Mussa, senior fellow at the Peterson Institute for International Economics, was concerned that the increase in rates will slow world growth in 2012.

"If il y a concern, this is what could happen next year," said Mussa.

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Associated press writers Pan Pylas London, Kelvin Chan in Hong Kong, Joe McDonald in Beijing and Tomoka a. Hosaka in Tokyo contributed to this report.

Anniversary wishes 50th of the Obama: lower unemployment

WASHINGTON- which give you the most powerful man in the world for its 50th anniversary? Michelle and the girls were probably a surprise in store. But for us, the President Barack Obama, the answer is clear.

He would like to see a fall of stubbornly high unemployment and a cut in the price of fuel at the pump at the time wherever he reached his half century on 4 August.

"A much lower rate of unemployment." And declining gas prices. Those who would be the perfect gift for my birthday, Obama said the magazine of the American Association of Retired People (AARP) with a laugh.

In spite of pumping enormous sums of money of stimulus in the economy since he took office in 2009, the rate of unemployment still hovers 9.0% as the largest economy in the world slowly recovers from the worst recession in decades.

And the price of gasoline have been crawling over high since 2008.

Obama said that he did not know yet how he planned celebrate his landmark birthday. Last year, he marked the occasion of a game of basketball with some of the players champion sport as LeBron James.

"Had a wonderful time." It will be hard to top that. "But I suspect that the girls may have something planned," he told the magazine of the Group major advocacy for the elderly.

And the President of the United States, whose hair is visibly more grey since his arrival at the Office, sometimes admitted feeling his age.

"The worst thing is, I don't feel I'm as fast as I used to be." "And I heal more slowly in the field of basketball", he said. Obama separates his lip in a match in November which needed 12 stitches to heal points.

"The wonderful thing is, I was able to maintain my health well enough. Also, I am old enough where I hope that I made enough mistakes, that I will not repeat. And I am still young enough that I can understand that wisdom.

AARP, advocating for older Americans, transmits requests for membership to the Americans that they reach the age of 50.

Spring of Arabic and the IMF row of concern to the leaders of the G8

DEAUVILLE, France - the leaders of the Group of eight gather in France Thursday to approve assistance to new democracies from Arabic, but disputes between the West and the IMF on developing economies can take up to much of their time running.

Responsible of the G8 - United States, Canada, Great Britain, France, Germany, Italy, Japan and Russia - the preparatory talks held Wednesday in the seaside resort of Deauville to forge common positions on issues ranging from the global economy to the war of secession of the LibyeEn nuclear Iran goals and disorders in Syria.

Hosted by French President Nicolas Sarkozy, the Summit runs until Friday. It is expected to approve a package of assistance of several billion dollars for the Tunisia and the Egypt, after that of the "Spring of Arabic" uprisings filed their autocratic leaders and sealing an agreement for the return of others in the region who want democracy.

However, protests against the other allies of the West, particularly in the oil-rich Gulf, are unlikely to win clear support.

"We share a compelling interest in seeing the transitions in Egypt and Tunisia succeed and become role models for the region", US Secretary of State Hillary Clinton and Secretary of the Board of Treasury Timothy Geithner wrote in a letter to G8 Wednesday.

"Otherwise, we risk losing this moment of opportunity."

VOLTAGE OF THE IMF

The G8 leaders arriving at the station faded casino may have to repel challenges to the influence of Western Europe on the position of Director General of the Monetary Fund International, the global lender. The position was left vacant by the dramatic departure of Dominique Strauss-Kahn, a French who is accused of attempted rape of a woman of New York House hotel.

French Finance Minister Christine Lagarde announced that she stood for the position on the eve of the Summit of G8, after securing the unanimous support of the European Union of 27-nation and diplomats, said, the support by the United States and China.

"I think the difference that G8 leaders will discuss the issue, even if Ms. Lagarde will probably be the best candidate," Envoy of the Russia in France told Reuters, adding that he did not believe that his country would have any objections to him.

"But the question,"Ambassador Alexander Orlov added,"is whether Western Europe should always move this institution and why other countries, including the BRICs (Brazil, Russia, India, China, and South Africa), and can not have their own candidate."

The IMF has promised one meritocratic process to replace Strauss-Kahn, a Minister ex-Finances Socialist who was favorite to beat Sarkozy in a French presidential election next year.

He developed a deadline June 30 to choose a successor to this position, which was held by a European since 1945.

But emerging nations want to push an alternative. Russian President Dmitry Medvedev and the Minister of finance Pravin Gordhan of South Africa, one of 10 African countries invited to the station of Normandy, are likely to defend the position of the BRICs.

Medvedev is also likely to expose its concerns on the Libya, where more than two months of NATO air strikes have failed to dislodge leader Mu'ammar al-Gaddafi.

A critique of the military intervention of the Russia wants to push his own ceasefire plan after welcoming envoys of Gaddafi and the opposition in Moscow for talks.

"Let me make clear, the Russia is not that Gaddafi to stay in power," Orlov said. "" "". He has committed crimes and must take responsibility for those, but in the process of transition policy, we want all parties to take part.

"The Russia is ready to play the role of mediator, if other countries are ready, but to do that we must have a ceasefire."

Events planned for Friday business

Main activities and economic events planned for Friday:

WASHINGTON - Commerce Department releases personal income and spending for April, 8: 30 am.

WASHINGTON - National Association of Realtors pending releases index sales house for March, 10 am.

DEAUVILLE, France - France hosts the Summit of the leaders of the Group of eight leading industrialized economies.

Top banks lobbying received larger rescue plan

NEW YORK - more aggressively pressure before the financial crisis the worst Bank loans made during the economic recession - and rescue dollars more it received, according to a study published this week by the National Bureau of Economic Research.

The report, entitled "A Fistful of Dollars: Lobbying and the financial crisis," said that banks lobbying efforts may be motivated by short-term profit gains, which can have devastating effects on the economy.

"Overall, our results indicate that the political influence of the financial industry played a role in the accumulation of risks and therefore contributed to the financial crisis," said the report, drafted by three economists of the Monetary Fund International.

The data collected by the three authors - Deniz Zaagi'igan, Prachi Mishra and Thierry Tressel - show that the more aggressive lobbiers in the financial industry from 2000 to 2007, has also made more toxic mortgages. They securitized most of the debt for real estate investors and their stock prices more closely correlated to the recession and lending plan rescue that followed.

Loans banks has also suffered from crime higher during the recession.

What economists could not definitively determine was the motivation of the banks of lobbying. If the banks were looking to generate income at the expense of the company, it would be logical to restrict their lobbying.

If the banks were especially concerned of profit in the short term and not think do not long term consequences, then Executive compensation practices should be modified, said the report. And if the banks just wish to inform legislators and were too optimistic about their future, it would be more difficult to propose reforms.

BIG LOBBYING, OF WHOLESALE RESCUE PLANS

When the bubble burst, the banks that spend more on lobbying received "a large piece of the cake" in the rescue plan of 700 billion dollars in the fall of 2008.

For example, the report cites Citigroup Inc. (c.n.r.) $ 3 million to lobby against HR-1051 predatory loan Consumer Protection Act of 2001 and the Bank of America Corp. (BAC).(N) spending $ 1 million to put pressure on housing and banking issues.

HR-1051 never signed into law, nor was 93% of all invoices for the promotion of more stringent regulations from 1999 to 2006. However, two bills that significantly reduces the restrictions on the mortgage market is in force, access to property American and Economic Opportunity Act of 2000 and the Act on the implementation of the American Dream Fund, 2003.

Citigroup and Bank of America each finally receive 45 billion of the rescue plan Fund, JPMorgan Chase & Co (JPM).(N), Wells Fargo & Co (WFC).(N) or other large commercial banks.

Now that Frank Dodd financial reform bill has passed, the big banks have been aggressively lobbying against them, are too severe restrictions. Among the top items on the agenda of the industry's lobbying are stronger capital regulation, but also a Bureau of financial Protection, new rules on derivatives trade and restrictions on the exchange of exclusive rights.

In an interview with Reuters Thursday, Zaagi'igan counterparts of the Federal Reserve Board expressed concern that "certain concepts would get watered down in the process because the financial industry is pressure against them."

On Tuesday, the House Financial Services Committee voted to delay the implementation of the reform of derivatives of 18 months. Although few expect such a measure to clear the Senate and be signed by the President, some Wall Street executives are pressing for slower rulemaking.

At a demonstration Tuesday, Morgan Stanley (MS)(N) CEO James Gorman, warned that implementation of reforms could too hastily "" tip the world's economies into recession. ""

Economists report describes the negative impacts of the lobbying of the Bank, but Zaagi'igan stated that this time, Wall Street's interests can be aligned with the whole of the economy - if by chance.

She said Bank lobbying is "not bad" and current activities can act as counterweight to tilt after the crisis of the regulators to keep banks left tight.

Dollar lower as data confirm the low us growth

NEW YORK - the dollar fell Thursday against the other currencies after a new report has confirmed the sluggish U.S. economic growth in the first three months of the year as the high gasoline prices hurt consumer spending.

The euro has increased to $1.4140 in late trading in New York, up from $1.4079 late Wednesday. The euro rose as high as $1.4206 earlier in the day.

Investors had thought that the risk of a default value of debt in Greece was at least a year away, but recent comments by European leaders have led some traders to suspect that there could be a default value as soon as possible as mid-JulyBrian Kim UBS currency analyst, said.

Traders "are quite uncertain enough fear on what could happen" in Greece, Kim said. "We do not know what really believe officials."

At a Conference in Luxembourg, Jean-Claude Juncker, Chairman of the Group of 17 Ministers of finance to countries that use the euro, warned that International Monetary Fund may not send the 12 billion euros ($17 billion) he expected in June of its bailout approved last year the Economist David Mackie GrèceJPMorgansaid in a research note.

IMF aid the Greece clings to its economic reforms, but Greece politicians are fighting the wire further reductions in government spending, as evidenced by thousands of citizens against austerity measures.

Finance Minister George Papaconstantinou has warned that a halt in foreign cash flow would force default Greece.

In addition, the dollar is still lower on concerns about a weakening recovery to the United States. The Department of Commerce, says that the economy grew at a rate of 1.8% from January to March, unchanged from its previous estimate.

Gas, a troubled housing market and high unemployment make buyers cautious spending.

The Ministry of labour said more people unemployed assistance last week, a sign that the labor market is still low asked. The number of people seeking benefits increased by 10 000 a 424,000 seasonally adjusted. 375 000 Claims below is compatible with the growth of stable employment.

The British Pound rose to $1.6389 of $1.6279, while the dollar slipped to 81.30 Japanese yen of yen 81.97.

A look at economic developments around the world (AP)

A look at economic developments and activity in major stock markets around the world Thursday:

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LONDON - Stock markets and the euro fell on a report that Greece may not get the next installment of its international rescue loans. Weak U.S. economic data further weighed on sentiment.

Jean-Claude Juncker, the chairman of the Eurogroup, said in Luxembourg that the International Monetary Fund may have to hold back the next tranche of its funding for Greece, according to an analyst.

The reason is that the IMF's loans are contingent on Greece showing what its state financing will be over the next 12 months. Until recently, that was meant to include raising cash on bond markets next year, a move the Greek government has admitted is no longer possible as its market borrowing rates remain too high.

Year IMF and EU delegation is now in Athens reviewing Greece's finances, and a decision on the IMF's next aid installment will be made in June.

The euro slumped, while Germany's DAX closed down 0.8 percent and the CAC-40 in France shed 0.3 percent. The FTSE 100 index of leading British shares bucked the trend, rising 0.2 percent.

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TOKYO - Earlier in Asia, stocks enjoyed a strong day. Japan's Nikkei 225 stock average closed 1.5 percent higher. South Korea's Kospi gained 2.8 percent, Australia's S & P/ASX 200 rose 1.6 percent and Hong Kong's Hang Seng ended 0.7 percent higher. Mainland Chinese shares slid amid concerns that growth may slow in the latter half of the year.

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SHANGHAI - China's worst drought in a half-century is deepening, with the parched conditions that have left millions in the Yangtze River region without enough drinking water pushing inflation higher and adding to widespread power shortages.

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ATHENS, Greece - Greece's finance ministry said it has invited Germany's Deutsche Telekom to up its stake in the country's dominant telecoms provider OTE amid mounting European pressure to speed up privatization and cost-cutting.

Greece is hoping to raise an ambitious euro50 trillion ($70 billion) from privatizations by the end of 2015 to help cut its massive national debt, but has been criticized by the European Union for failing to launch the program quickly enough.

Inspectors from the EU and International Monetary Fund are currently in Athens to review the crisis-hit country's austerity program agreed last year in return for a European trillion ($155 billion) bailout loan deal.

Top EU finance officials have urged Greece to speed up reforms and forge cross-party support for austerity measures before it would consider additional rescue funding for Greece, which remains locked out of bond markets and will likely face critical funding shortage next year.

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BERLIN - Germany's finance minister said Greece may need more time to implement reforms including a big privatization program. He also highlighted the risks involved in Greece's debt restructuring.

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DEAUVILLE, France - Secretary of State Hillary Rodham Clinton gave a boost to the candidacy of French finance chief Christine Lagarde for the top job at the IMF, but stopped short of endorsing anyone yet.

Former International Monetary Fund chief Dominique Strauss-Kahn, a Frenchman, resigned last week over sex crime allegations.

World leaders at a summit in France will debate over who should be his successor and whether a European should get the job instead of someone from another region, as developing countries argue.

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PARIS - The top U.S. trade official said it's too soon to declare the Doha Round of trade liberalization talks a failure, even as its launch nears its ten-year anniversary and Oxford say a deal this year is impossible.

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FRANKFURT, Germany - Nouriel Roubini, the New York University economist known as Dr. Doom, says Greek restructuring would not bring down Europe's financial system. The economist, who earned his nickname by predicting the global financial crisis, says an orderly debt restructuring could more pre-empt disorder.

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BERLIN - The European Central Bank is signaling that it remains on track to raise interest rates further despite the continent's debt crisis. The ECB raised interest rates from an all-time low to 1.25 percent in April as it tries to keep inflation in check.

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DEAUVILLE, France - Leaders of the world's rich democracies will urge Libya and Syria to halt violence that is threatening to extinguish the so-called Arab Spring, goal remain divided about how to respond if the nations don't heed the call, officials said.

A draft declaration circulating at the Group of Eight summit in France contains no. specific sanctions against Libya and Syria.

It illustrates fears among President Barack Obama and other G - 8 leaders that uprisings around the Arab world could end up entrenching autocrats instead of defeating them.

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PARIS - Secretary of State Hillary Rodham Clinton welcomed Russia's decision to sign a key international anti-bribery pact.

Clinton said Moscow's signing of the anti-bribery convention is "a significant step in its own right and a milestone in Russia's own path toward full OECD membership."

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BEIJING - North Korea's supreme leader Kim Jong Il won fresh expressions of support from China's president on a visit to China, his most important ally. Kim's regime is struggling to feed North Korea's impoverished population and stabilize the country's collapsing economy.

Such backing is crucial for a regime in the throes of an economic crisis and facing increasing isolation. Most contacts with former benefactors South Korea and the United States are frozen.

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DUBAI, United Arab Emirates - Credit rating agency Moody's Investors Service cut its ratings on Bahrain's government bonds and said their outlook is negative mainly because of the political turmoil in the Gulf island nation.

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BEIRUT - The uprising against Syrian President Bashar Assad is eviscerating the country's economy, threatening to hit hard at the business community and prosperous merchant classes, which the embattled regime related it to help retain its grip on power.

Two months of violent protests throughout Syria have shuttered businesses, driven away tourists and thrust Assad's regime into an unprecedented political quagmire. Economic growth rates that had hit around 3.5 percent in fiscal 2010, are seen, according to some estimates, contracting by 3 percent in fiscal 2011.

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LISBON, Portugal - Portugal's debt agency said it wants to borrow up to euro2.25 billion ($ 3.2 billion) in short-term Treasury bill auctions next month as the bailed-out country seeks to maintain a presence in financial markets.

Portugal is taking a euro78 trillion bailout from its European partners and the International Monetary Fund to avoid being bankrupted by interest rates that soared to unsustainable levels over the past year.

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MILAN - Italy raised euro10 billion ($ 14.07 billion) by selling bonds, with good demand and at stable or lower interest rates, in the first market test since Standard & Poor's lowered the country's outlook to negative.

Summary box: more people sought unemployment assistance

Mounted APPLICATIONS: more people sought unemployment benefits last week, the first increase in three weeks. The number of people seeking benefits is passed to 424,000, much more than the 375 000 which is consistent with the sustained growth of employment.

Low labour market: the increase suggests that the labour market remains weak. Employers are reluctant to hire many new workers, while local governments and a few other industries are still cutting jobs.

Slower hiring: companies added over 250 000 new jobs, on average, in the last three months. With applications on the rise, many economists forecast that number will drop in May.

The leaders of the G8 to attach the Arab spring helps reform

DEAUVILLE, France - Group of eight leaders were to approve billions of dollars in aid Friday to the new democracies Arab with a program designed to foster radical change in North Africa and the Middle East.

The leaders have been at the close of the two-day summit in the North of the France by launching a partnership with the region which would bind cash aid and development progress on democracy and economic reforms in the States who were thrown out of autocratic leaders.

Tunisia and Egypt, whose first ministers will meet with the leaders of seven Western powers over the Russia of G8 Friday, face to face with enormous economic pressures following popular uprisings that toppled their authoritarian rulers of long-standing service.

In a report to the G8, leaders of the Monetary Fund International said Thursday the needs of external financing for the import of oil in the Middle East and North Africa, countries would be top 160 billion dollars over the next three years.

"The region needs to prepare for a fundamental transformation of its economic model," Masood Ahmed, in charge of the IMF's Africa and Middle East, said journalists on the sidelines of the G8 meeting in Deauville.

"This will be greatly facilitated if international actors, including the G8 can enter into a strategic partnership with these countries... where incentives are linked to a social agenda."

The IMF said it can provide approximately $ 35 billion to help stabilize the economies of the countries, but most of the funding must come from the international community.

The World Bank on Tuesday unveiled $ 6 billion of new funding for the Tunisia and Egypt, including revolts inspired popular uprisings to the Yemen, in Jordan, Morocco and Syria and left leader Libyan Muammar al-Gaddafi, fighting to stay in power.

The funds include budget support and loan to consolidate the private sector and encourage new investment.

A World Bank report published the same day, said the needs of the region on the jobs of 50 to 75 million over the next decade to absorb new entrants to the labour market and reduce unemployment.

Diplomatic sources, said that the Summit would also return the extension of the mandate of the European Bank for Reconstruction and development in North Africa and the Middle East. The Bank, created after the cold war to help the former Communist countries to become market economies, lends about EUR 9 billion per year for projects ranging from Croatia in Central Europe in China.

Prime Minister David Cameron UK said Thursday the G8 Summit would show Arab Street that the world was standing behind the demands for greater political and economic freedom.

"We will help build your democracy, will help your savings... we will help you in all the ways we can, because the alternative to a successful democracy is more toxic extremism which has done so much damage in our world.".

However, the State of the world economy means that the extent of the aid on offer is likely to be modest.

The European Union Executive said it had added 1.24 billion euros of subsidy costs to an existing program designed to help its neighbours across the Mediterranean.

Consumers curtail growth, rebound seen in muted

WASHINGTON - of unexpectedly low consumer spending hinders the economy in the signs first quarter and fresh of a slowdown in the market work emphasized a struggle to recovery.

The economy grew at an annual rate of 1.8% in the first three months of this year, the Commerce Department said Thursday, unchanged from an earlier estimate and lower than most forecasts.

A separate report of the Ministry of labour has shown the number of Americans seeking unemployment benefits rose unexpectedly the week last by 10 to 424 000.

Some of the slowdown in growth was linked to poor weather conditions in early 2011 and a decrease of 11.7% of military spending, trends which are expected to return in the second quarter.

But economists were less hopeful on the back of rebound expected growth, citing the rise in jobless claims and a moderation in output of plant, which has been hit by disruptions in supply chains after the earthquake of March to the Japan.

"The rebound in the second quarter is likely to be muted," said Nigel Gault, Chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.

Currently in the second quarter gross domestic product growth estimates vary between 2.5 and 3.5%, but could be revised. Recent data, including sales, retail and regional manufacturing surveys all emphasize soft growth.

The economy grew at a rate of 3.1 per cent during the period from October to December. Economists had expected the pace in the first quarter to be revised by 2.1%.

WEAK CONSUMER SPENDING

Investors on Wall Street excluded data and bought stocks. Liaison for the American Government prices rallied, stimulated by flight safety buying on concerns over European sovereign debt crisis. The dollar had lost against a basket of currencies.

Despite seven straight quarters economy expansion, growth has been lukewarm fragilities, leaving the two Obama administration and opposition Republicans scrambling of ideas to put on a faster track.

Thursday White House has announced measures to reduce the costs of complying with government regulations for businesses, while legislators unveiled job creation proposals Republicans - who have been in large part a repackaging of the policies they advocated for a long time.

Expenses - which represents more than two-thirds of economic activity U.S. - expanded at a rate of 2.2 per cent in the first three months of this year, slower than the previously reported 2.7 per cent of consumption.

After rising to a clip of 4 percent in the fourth quarter, spending has been cut by high food and prices of gasoline, which has sent inflation rising at its fastest pace in 2-1/2 years.

The index of prices for personal consumption expenditures increased at a rate not revised by 3.8% in the first quarter. Than the increase of 1.7% in the fourth quarter.

The core PCE index, which is closely watched by the Federal Reserve increased at a rate of 1.4%, the fastest pace since the fourth quarter of 2009.

Fed officials would like to see this measure nearly 2%. The slowdown in growth medium pace of the US Central Bank will be not pressed its interest rate, after it concludes its $ 600 billion, the Government in June binding purchase program.

"This may delay the day when the Fed began to standardize the rates of interest until even later, on the road," said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York. "The Fed will want to see GDP above 3%, certainly before taking their foot gas.".

Although consumer spending withdrew in the first quarter, economists are hopeful that a recent cooling of energy and food prices and will facilitate the burden on the household budget and to stimulate spending.

The eclipsed soft consumer spending increased 52.2 billion in inventories of business, which was well above the rise of 43.8 billion initially reported.

But a decrease in the production of vehicles so far in this quarter due to lack of parts of the Japan could cause a lowering of the level of stocks and weigh on growth in the period April-June.

Exit vehicle motor added 1.28 percentage points of GDP in the first quarter.

The GDP report also showed after-tax corporate profits fell at a rate of 0.9% in the first quarter after rising to a 3.3% pace in the fourth quarter.

The decline in profits, the first since the fourth quarter of 2008, probably reflects a slowdown in the growth of productivity as companies intensified for hiring. Economists had expected the profits of the business to grow at a 2.3% pace.

However, place the week last suggested initial claims that could slow down the pace of hiring. Economists had expected claims drag to 400,000. Last week marked the seventh consecutive week in which claims topped the 400,000 level that economists say is normally associated with the growth of stable employment.

"The weakness in the jobless claims data persisted too long to ignore and suggests that the labour market, which had been a bright spot in the first quarter, turns a little warmer in the second quarter," said Michael Ferolian economist at JPMorgan in New York.

More people a claim for unemployment benefits

WASHINGTON - more people last week a request for unemployment benefits, the first increase in three weeks and the evidence that the labour market is still sluggish.

The number of people seeking benefits increased by 10 000 a 424,000 seasonally adjusted, the Labour Ministry said Thursday. No State cited extreme weather as a factor in the increase, said a spokesman for the Department. Tornadoes and flooding have devastated several States of the Midwest and the South in the month.

Applications are above the level of 375,000 is consistent with the sustainable employment growth. Applications peaked at 659,000 during the recession.

"The labour market is not exactly improve with leaps and bounds," Jennifer Lee, an economist at BMO Capital markets, said in a note to clients. "Companies are hiring but likely to return until they are more comfortable and more confident in the current economic environment."

Yet, the average of four weeks, less volatile measure, declined for the first time in seven weeks to 438,500.

Employers stepped up hiring this spring, but some economists fear that rising applications indicate hiring slows.

A separate report showed the economy grew 1.8% in the January-March quarter, a slowdown of the 3.1% annual pace recorded in the period from October to December. Consumer spending increased at a much slower pace, as shoppers were selected by a high unemployment and $4 a gallon gas.

Until now, the economy has been generating jobs at a healthy pace this year. Companies have added that a total of more than 250,000 jobs a month, on average, over the last three months, faster spree of hiring over five years. The unemployment rate declined nearly a point of percentage in the last five months, though it remains a very high 9 percent.

But several economists said that the number of additional jobs for may will probably dip less than 200 000 for the first time since January.

"We will lose some momentum in employment," said Brian Levitt, an economist at OppenheimerFunds. He expects companies to create approximately 150 000 to 175 000 jobs this month. Higher gas prices act like a tax on consumers, prohibiting their spending, said.

Gasoline prices dipped to an average of $3.81 per gallon Thursday, down $3.91 a week ago. But they are $1.04 more than last year.

The total number of persons receiving benefits is also declining. The allocation of unemployment rolls decreased by 46 to 3.7 million in the week ending May 14. This figure is data from applications to a week.

Approximately 4 million additional people receive benefits under emergency programmes adopted during the recession. Altogether, 7.7 million people receiving benefits for unemployment during the week ending May 7, the latest available data. This is a decrease of nearly 200 000 from the previous week.

Higher food, oil prices weigh on the US economy

WASHINGTON  - new data out this week suggested the US economy remains deep in the doldrums, thwart the efforts of Washington for the industry to revive and create jobs two years after the end of the last recession.

High oil prices and rising food costs seem to have delayed what was supposed to be more dynamic in the private sector of the country which would be taken relay while federal and local governments slash spending.

Surprised by the data economists have reduced forecasts for economic growth in the second quarter following the dismal 1.8% pace in the first, with indicators of industrial production, consumer spending and unemployment appearing all sweet.

Consultancy Macroeconomic Advisers lowered its gross domestic product (GDP) growth forecasts for the period April-June to 2.8 per cent Wednesday, 3.5 percent only two weeks earlier, after seeing a sharp decline in orders for manufactured goods sustainable in April - a fact flag how the industrial sector.

The Commerce Department reported overall orders fell by 3.6% the previous month.

And, excluding volatile orders for aircraft and other transportation equipment, orders are always down 1.5% - showing us manufacturers sell less.

Numbers of Ministry of labour has published Thursday show that it weekly new claims for unemployment insurance - a sign of the pace of layoffs - are more than 400 000 for the seventh consecutive week, after a drop below that level for several weeks in February and March seems a signal improvement job market.

Meanwhile, the Commerce Department has confirmed its previous estimate that the economy only increased at a slow annual rate of 1.8% in the first quarter, when economists had expected a higher number.

Notable in the latest data was that consumer spending had been lower than initially included - a sign, analysts said, that high oil and food prices were hitting the budgets of buyers for other things.

Ian Shepherdson, US economist for high frequency economics, said the sharp rise in the price of oil has helped stifle job creation.

"The trend in claims has pushed up to a little as companies responded to rising oil prices," he said.

Commenting on the figure of the GDP in the first quarter, Michael Gapen of Barclays Capital said that low consumption suggested that "the thrust of the global food inflation higher and energy prices cut into more than initially estimated real expenses."

For two months the rise in new jobless claims data was explained by statistics, seasonal or weather features.

Maximum number of 424 000 new claims Thursday - the previous week to 414,000 - came with no such explanation but the trend has been hard to deny.

"The initial data of claims, on balance, deteriorated in the second quarter," said RDQ Economics in a report.

"We can no longer hide behind (Ministry of labour) asserts that the increase in applications is bound quarter volatility.".

The unemployment rate of 9.0% has dogged the White House, which has tried to keep expenditure low rates of interest of the Government, and the competitive dollar to stimulate commerce and industry in the hope that they will start hiring.

Interviewed by a magazine for the elderly that he would like for its 50th anniversary on August 4, President Barack Obama responded: "a much lower rate of unemployment." And declining gas prices. Those who would be perfect gifts. ?

Economists said that they always plan a second half stronger, as consumers and businesses to adapt to the high price of oil.

The second half "will be better that oil has hit fades,", said Shepherdson.

"If reinforces the underlying economy as credit faster, because we believe, then the interruption of oil will not last longer and (new unemployed) claims will lead South once again in the summer."

But other more unexpected turns in the data information.

"The surprises of negative economic data have significantly only positive surprises,", said Deutsche Bank Securities.

But the bank kept at the same time its any year of the forecast at 3.4%.

"The theme remains that productivity is largely slowing as continued economic expansion, which means that the pace of hiring should accelerate - as is typical at this stage of an economic expansion".

See Sony returns to profit after the third annual loss

TOKYO - Sony plans a return to profit from this exercise after slides it into its third consecutive year of red ink, hammered by the cost of massive online security breaches and damage caused by the tsunami and an earthquake of March to the northeast of the Japan.

Based in Tokyo Sony Corp., said Thursday it expects a profit of 80 billion yen (975.6 million) for the current fiscal year, as the sales recover in TV flat screen, games, personal computers and network services.

Sony has accumulated a loss of 259.6 billion yen ($3.2 billion) for the year ended March 2011, most large net loss of the company in 16 years.

Latest Sony red ink is worse than the loss of 40.8 billion yen accumulated in the previous year and the loss of 98.9 billion yen for the year of prior to this.

Sony said that he hoped to boost sales for the fiscal year to March 2012 from 4.4% to 7.5 billion yen ($91.5 billion).

Losses are reminiscent of another difficult in the history of Sony period, when his bottom line was beaten in 1995 by the disastrous results of its operations in film, following the purchase of Sony studio $ 3.4 billion Hollywood Columbia Pictures in 1989.

Sony, which makes the game PlayStation and Bravia display console has crystals liquid televisions, has been fighting delays production and sales loss after supplier factories were damaged by the earthquake and tsunami.

It lowers its earnings projection, earlier this week quoting a charge, it must be related to damage of the disaster. He had initially planned to return to profit.

Sony has also faced a new kind of challenge to its reputation after a massive breach of security affecting more than 100 million online accounts and was forced to close its online gaming services last month.

Sony expects the costs of his misadventures of online safety of 14 billion yen (173 million dollars), covering the customer support, packets of gratification, legal costs, lower sales and beef safety measures.

He said, he has not confirmed any misuse of personal information may be stolen, but most security problems have arisen in recent weeks, including services in Greece and the Canada.

For the January-March quarter, Sony red ink is increased to 388.8 billion yen ($4.7 billion) loss of loss of 56.6 billion yen for the same period the previous year. Quarterly sales dropped 7.8% to 1.58 billion yen ($19.3 billion).

Sony remained in the red in its core TV business for seven years straight. A strong yen, which erodes the value of overseas sales and a decline in prices were behind the damage, despite selling more televisions, according to Sony.

Sony stock gained 0.1% to 2,238 yen ($27) in Tokyo, shortly before earnings were announced.

Lukoil the Russia posts 71 pct rise in favour of T1

Moscow - the second largest producer oil.

The Moscow-based firm said in a statement Thursday that its profit for the period January-March was up to $ 2 billion last year.

Lukoil, the largest oil private Russian company, said its turnover increased by 29.6 billion of $ 23.9 billion in that time.

The price for raw mix export of Russia reference, Ural, increased by more than 30% during this period year on year, analysts estimate.

Oil prices greatly contributed to offset the numbers in the production of crude oil, Lukoil, said, decreased by 5% a year, to 22.8 million tonnes.

Burberry year-round profits more than double

LONDON - British luxury goods Group Burberry PLC company is inciting openings again after outbreak of other accessories and leather bags Thursday that sales has more than doubled its profits throughout the year.

But strong earnings did not prevent a slowdown in the stock of the company of 155 years as some investors reserved some profits after the Burberry, said that its investment in expansion would hit operating margins in the first half of the fiscal year.

Burberry mounted a strong bulging in the market for luxury goods world to post a net profit of 208.4 million pounds (340 million dollars) for the 12 months at the end of March, compared to 81.4 million pounds the previous year.

Income to the company known for its distinctive red, black and Brown plaid fabric, stir-fry from 25% to ￡ 1.5 billion, 1.2 billion pounds.

Profits were driven out by an increase of 35% of sales of goods non-vêtements, such as jewellery, hand bags and shoes. High application of range of the Group was particularly strong in Europe Asia and Chinese tourists.

"For the moment Burberry remains a rare and remarkable enjoying retailer of a stellar growth trajectory,", said Richard Hunter, head of the shares of U.K. to Hargreaves Lansdown stockbrokers.

However, Hunter noted the company "remains." exposed to changes in demand for luxury products, which in turn is connected to the General global economic health

"In addition, the Group has a high exposure to clothing for a provider of luxury, which could bring some concerns that the change of fashion trends," he said.

Burberry shares fell by 4% to 1268 pence as the group based in London, said that throughout the year operating profit increase would be "modest" after three years of strong gains.

Still, Burberry plans to open new stores of 20 to 25 this year to capitalize on a strong rebound in the market for luxury goods world following the global economic crisis.

"While it is aware of the global challenges macro in the current year, we will continue to invest for growth across our portfolio by channel, product, region", said Chief Executive Angela Ahrendts.

High range sector has recovered much faster than the rest of the retail market.

Consultancy of U.S., Bain & Co. earlier this month retail sale above forecast sales of luxury in the world to grow 8 percent this year to euro185 billion. Bath predicted that the United States remains the largest market in the world with an increase of 8% of sales of euro52 billion, but noted a surge of 25 100 expected in growth in China. European growth, at the same time, has been estimated at 7%, while Japan - traditionally a strong performer - was expected to decrease by 5% after the recent earthquake.

Burberry focused these past new openings in the emerging markets, which represent 16% of the retail group and large income, including the India, the Brazil and the Mexico. It has now 174 stores mainline, 199 concessions in stores and 44 points of sale.

China, where it has 57 stores, is a major target for the company after paying 12 per cent of underlying retail sales.

Burberry is transformed in the course of the five years that Ahrendts held the position since its entry in the company of Liz Claiborne Inc., with star power as actress "Harry Potter" Emma Watson in the campaigns to counter perceived plaid fabric overexposure famous.

In the global financial crisis, society has established a program of spending reduction that reduces jobs in Britain and Spain, but he has stuck with openings in Asia and America. This year, the company plans an increase of 12-13% on average retail selling space, with a tendency towards China, Latin America and the Middle East.

Gains 1 q Tiffany up to 25 pct, raises an opinion (AP)

NEW YORK--in another sign that the sector of luxury high rest, Tiffany & Co. said Thursday that its profit in the first quarter increased by 25% on incomes higher in all regions in the world.

The results beat the top hand expectations and manufacturer of jewellery also raised its forecast for the year above current Wall Street estimates.

Shares rose $ 6, or 8.6%, to close Thursday at $76.04.

New York, known for its iconic turquoise box, the company said net income if student at 81.1 million, or 63 cents per share, for the three months ended April 30, of 64.4 million, or 50 cents per sharea year earlier. Net income includes 4 cents per share of expenditures related to Tiffany relocate its headquarters in New York.

Analysts expected 57 cents per share, according to FactSet.

Sautéed revenue 20 percent to 761 million from $633.6 million last year, significantly higher than the predictions of the analyst of 702.6 million.

High-end, commitment and gold jewelry selling particularly well, said investor relations vice president Mark Aaron. Silver jewellery, which sold well in the recession, since it is relatively low prices, had growth, but remains limited.

"The U.S. economic environment affecting expenditure by some of our customers of silver jewellery at entry-level price points will be probably difficult for some time," said Aaron.

In particular, sales in the Japan quickly recovered after the devastating earthquake and tsunami. About a quarter of Tiffany stores are in the Japan. The Japan sales increased by 7% to $ 123.4 million.

However, to the exclusion of the rise of the yen, sales fell by 3%. But, it was better than expected of Tiffany.

Revenue at stores open at least a year, a key industry metrics, also fell to 3%. Tiffany said all stores closed due to earthquake reopened.

Income in the Americas, the largest region of Tiffany, increased by 19% to $ 374.7 million. The region includes United States, Canada, and Latin America. Income from stores open at least a year increased by 17%, a jump of 23 percent to the Tiffany flagship store, New York a Mecca for tourists.

Revenue in the Asia-Pacific increased by 37% to $ 167.2 million. In Europe, income increased by a quarter of $ 85.6 million.

While some have speculated results in Hawaii and Guam would suffer less tourists Japanese, income in the region of six-store stores open at least a year actually increased 30%.

CEO Michael Kowalski said Tiffany introduce new products this year, will increase marketing and advertising and open 19 new stores during the year.

High costs of diamond Tiffany raise prices earlier this year and said Tiffany could raise prices again in the various categories and regions to offset the higher costs and precious metals. But the price increases have not discouraged shoppers, Aaron said.

"Clients are certainly aware of the rising costs of raw materials and we have not experienced any significant resistance to higher prices," he said.

For the full year, Tiffany expects now net adjusted $3.45 and $3.55 by action of orientation prior $ 3.35 to $ 3.45 per share. Analysts expected earnings of $3.31 per share.

Sales are expected to increase to a "percentage of adolescence" around the world.

Summary box: Heinz fourth-quarter net income rises

Higher PROFIT: H.J. Heinz Co.'s net income increased by 16% in summer million, or 69 cents per share, for the quarter.

Job losses: the company announced Thursday that il will shed up to 1,000 jobs globally in 2012 tax that il farm five plants. Heinz has 37,000 workers worldwide.

PRICES: the company, as most of the manufacturers of food, has already raised prices on some items to account for the rising ingredient costs but will make more increases in the future.

Heinz 4 q profit climbs, reduce 800 to 1,000 jobs

By SARAH SKIDMORE and MICHELLE CHAPMAN, AP Business writers Sarah Skidmore and Michelle Chapman, Ap Business writers - 2 hours 22 minutes ago

H.J. Heinz Co. global expansion efforts pay off the coast, at the wheel of his net income in the fourth quarter 16 per cent. But large manufacturer of the said ketchup that should raise prices and cut jobs to continue its profitable path.

The company, based in Pittsburgh, announced Thursday that it will lay up to 1,000 jobs globally in 2012 fiscal close five plants. Heinz has 37,000 workers worldwide. I

The closures will include two plants in the United States, both in Europe and the Pacific region. It lay approximately 800 to 1 000 positions and remain with 76 plants. Heinz does not more plants would close.

Heinz has looked like China, India, Russia and the Brazil emerging markets to help fuel its growth. The company recently acquired a majority stake in Brazilian food maker Coniexpress SA Industrias Alimenticias, which in fact brand ketchup Quero and other condiments. In November, Heinz purchased Foodstar, a manufacturer of Chinese soy sauce.

Emerging markets, composed of 17 per cent of its revenues in the fourth quarter. Heinz sales on emerging markets estimates will be more than 20 per cent tax in 2012.

"This is where the growth is in the 21st century," Heinz CEO William Johnson said investors at its annual meeting Thursday.

Heinz was million, or 69 cents per share, for the quarter. Is 192.4 million, or 60 cents per share, a year earlier, but it was short of the 72 cents per share expected on Wall Street.

Income increased by 6% to 2.89 billion, above the $ 2.87 billion analysts surveyed by FactSet estimates.

Heinz also raised its dividend by 7% on Thursday and increased his prospects throughout the year.

In addition to the closure of the plant, Heinz also said it will approximately spend $ 160 million to improve its manufacturing and accelerate the productivity of the exercise.

Among these changes is the creation of a European channel pole offer the Netherlands to consolidate the power of procurement, manufacturing, logistics and inventory of lead.

Heinz also stated that the costs of raw materials, which include everything from fuel and plastic food ingredients of base, have become such a challenge that productivity enhancements alone will not compensate. The company, as most of the manufacturers of food, has already raised prices on some points but will make more increases in the future.

Heinz expects now fiscal 2012 earnings of $3.29 to $3.39 per share, excluding the productivity investments. The forecast is based on the projected exchange rate. Analysts predict earnings of $3.33 per share.

For fiscal 2013, Heinz anticipates earnings between $3.60 and $3.70 per share on a constant currency basis.

Heinz shares rose 43 cents to close Thursday at $53.82.

____

Sarah Skidmore has contributed to this report from Portland, Oregon Michelle Chapman has contributed to this report from New York.

two companies to pay for irregular military seizures

WASHINGTON - two mortgage lenders will pay more than $ 22 million, combined to settle civil charges that they improperly barred on 178 military, some were used in wars in Iraq or Afghanistan.

Subsidiaries of Bank of America Corp. and Morgan Stanley failed to obtain court orders before imposing seizures between 2006 and 2009, the Department of Justice, said Thursday. Affairs will result in an average of $125,562 in payments per person. The seized homes have been in 22 States.

The regulation is "easily the largest amount recovered" for irregular military seizures, said Thomas e. Perez, Deputy Attorney General.

"Men and women who serve in the armed forces of our nation deserve, at least, to know that they will not have their houses taken illegally while they bravely put their lives on the line for their country,"Perez said. "

Among seizures on include several members of the service who had been injured or who suffers from post-traumatic stress disorder, officials said. One was a Iraq war veteran who was foreclosed in so that he was receiving counselling from nightmares and "nervous conditions" arising from his service.

The regulations, Perez said, lenders have agreed to create additional mortgage loan guarantees for military personnel.

The subsidiary of Bank of America, BAC home loans servicing, formerly Countrywide Home loans servicing and the subsidiary of Morgan Stanley, Saxon Mortgage Services, has also decided to consider possible cases of improper seizures as of Summer 2009 and 2010.

The Act that lenders were accused of having violated, Civil Relief Act of Servicemembers, offers protections to military personnel. Under the Act, they may not be expelled and the creditors cannot seize their property while they are in active service.

The Justice Department began its investigation earlier this year after separate investigations in the U.S. Marine Corps and Sergeant James Hurley, whose house in Hartford, Michigan, has been excluded on by Saxon in 2005 while he was in Iraq. Hurley moved with Saxon earlier this year for an undisclosed amount.

Case of foreclosure proceedings involving military personnel abroad started coming to light in 2005. Last month, based in New York JPMorgan Chase agreed to settle a class action for more than 60 millions of dollars. He was a Marine Corps captain who said that JPMorgan invoiced its military customers who took out mortgages with the Bank.

Earlier this year, JPMorgan acknowledged that he had charged about 4,000 members of service on mortgage loans and that it was foreclosed on 14 of them wrong. At the time, he paid $ 2 million to those who are affected and overthrown the seizures.

Federal officials say they are working to provide the most important financial protections for military families. A Federal Office devoted to military financial issues, the Servicemember Affairs Office, was launched in January and is to be incorporated in the Office of the financial Protection of newly created consumers.