U.S. AVERAGE MORTGAGE RATES FALL; 30-YEAR LOAN AT 4.45 PERCENT
TON» U.S. long-term mortgage W A S HI N G rates continued to fall this week, reaching their lowest levels in nine months.
The decline in home borrowing rates in recent weeks has been a spur to prospective homebuyers, reflected in a spike in applications for mortgages. Mortgage buyer Freddie Mac said Thursday the average rate on the benchmark 30year, fixed-rate mortgage dipped to 4.45 percent this week from 4.51 percent last week.
Rates remain far above last year’s levels, however. The key 30-year rate averaged 3.99 percent a year ago.
The average rate for 15-year, fixed-rate loans fell to 3.89 percent from 3.99 percent last week.
» American Airlines said Thursday its fourth-quarter revenue and fullyear 2018 profit will be lighter than previously expected, raising investors’ fears that airlines are discounting too many seats because of cheaper fuel.
American’s stock tumbled 11 percent before partially recovering to close down $1.38, or 4.1 percent, at $32.04. American said revenue for each seat flown 1 mile — a measure of pricing power — rose about 1.5 percent over the previous fourth quarter. That’s about 1 percentage point less than American had been forecasting.
EU regulators launch probe into Dutch tax regime for Nike.
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» Tax arrangements HAG U E , N E T HE R LA N D S between sneaker giant Nike and the Dutch government are being scrutinized by European Union competition regulators, the bloc’s executive commission announced Thursday.
The probe is centered on two Dutch-based companies that are part of the sports goods maker’s global operations and specifically about whether tax agreements they made with the Dutch authorities may have breached EU rules on state aid.
In a news release, Nike said the company “is subject to and rigorously ensures that it complies with all the same tax laws as other companies operating in the Netherlands. We believe the European Commission’s investigation is without merit.”
Judge proposes ordering PG&E to shut off power for wildfires.
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» To prevent wildfires,
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Pacific Gas & Electric Co. should reinspect its entire electric grid and cut off power during certain wind conditions regardless of the inconvenience to customers or loss of profit, a U.S. judge proposed Wednesday.
Judge William Alsup said in a court order his goal was to prevent the utility from causing any wildfires in the 2019 fire season.
“This will likely mean having to interrupt service during high-wind events (and possibly at other times), but that inconvenience, irritating as it will be, will pale by comparison to the death and destruction that otherwise might result from PG&E-inflicted wildfires,” Alsup said.
Alsup gave PG&E until Jan. 23 to respond to his proposal. PG&E said it’s reviewing Alsup’s proposal.