Fed predicts recovery to start in second half The Federal Reserve expects the economy to improve in coming months, even as policymakers downgraded their outlook for all of 2009 and said the unemployment rate could approach 10 percent. Fed Chairman Ben Bernanke and his colleagues believe that business sales and factory production will begin to recover gradually in the second half of this year as President Obama's stimulus package and the Fed's aggressive efforts to lift the country out of recession take hold. They also pointed to signs that the recession's grip was easing in the current quarter, according to documents released Wednesday. Under the Fed's new projections, the economy will shrink this year between 1.3 and 2 percent. The old forecast said the economy could contract between 0.5 and 1.3 percent.
Toll Brothers says new-home deposits are up Toll Brothers Inc. said Wednesday more springtime home buyers have come into its luxury-home communities and left deposits on new orders -- a sign that the housing market is improving. Since late March, Toll has had an increase in deposits in seven of the past nine weeks, compared with weekly figures from fiscal 2008. Despite perked-up home-buyer interest, the Horsham, Pa., company's homebuilding revenue fell by about half in the fiscal second quarter ended April 30. New home orders plunged 37 percent from the same period last year.
Japanese economy shrinks at record pace Japan's economy shrank at a record 15.2 percent annual pace in the first quarter, dragged down by plunging exports, thinner factory output and wary shoppers. But economists said the worst is over for the world's second-largest economy. Many predicted it would grow in the April-June period amid aggressive stimulus steps by the government and signs that companies are boosting production.
Chrysler names post-bankruptcy chairman Chrysler said that former Borden Chemical and Duracell chairman C. Robert Kidder will become chairman of the new Chrysler once it acquires old Chrysler's assets and joins with Fiat. He'll succeed Robert Nardelli, who will step down when Chrysler emerges from Chapter 11 bankruptcy protection.
Scrushy denies a role in HealthSouth swindle Testifying publicly for the first time about the financial debacle at HealthSouth Corp., fired CEO Richard Scrushy denied any involvement Wednesday with the huge accounting swindle that engulfed the rehabilitation company. "I had no knowledge of any financial fraud at HealthSouth," said Scrushy, temporarily out of the federal prison where he is serving time for a separate corruption conviction.
B of A stock sale increases optimism Bank of America Corporation's ability to sell $13.47 billion in common stock in less than two weeks has increased perceptions the bank is improving its operations. Shares of Bank of America rose 2.1 percent to close at $11.49. Charlotte, N.C.-based Bank of America said after the market closed Tuesday that it had recently completed sale of 1.25 billion shares of common stock as part of its efforts to raise new capital.
Munich's Oktoberfest raises beer price Carousers at Munich's Oktoberfest Sept. 19 to Oct. 4 will pay 5 percent more for a liter of beer. The German city's Office of Tourism said a 1-liter mug of beer will cost between 8.50 and 8.60 euros ($11.63 to $11.78). Last year, some 6 million people drank 13.9 million pints (6.6 million liters) at the festival.
British court declares Pringles a potato chip Pringles' tax status has been crunched by a trio of British judges. Court of Appeal judges in London decided Wednesday that the snack is a potato chip -- and is thus liable for Britain's Value Added Tax. In Britain, most food isn't subject to the 15 percent national tax, but potato chips are. A spokeswoman for Procter & Gamble said the company has been paying the tax.
