An anti-missile shield meant to protect Europe and the U.S. from Iranian missiles is dogged by cost overruns, production delays and technological glitches, according to government reports. The Government Accountability Office and the Defense Science Board, an advisory group to the Defense Department, have issued reports highlighting the problems.
Bond investors will be focusing on meetings of the Federal Reserve, Bank of England and European Central Bank this week as all three are expected to keep key interest rates unchanged. For those investors interested in long-term positions, buying European government bonds and selling U.S. Treasuries may be the smart move. "The yield spread will continue to flatten, especially the 10-year sector," said Amitabh Arora of Lehman Bros.
With fuel costs rising and demand falling, Northwest Airlines says it will cancel two routes to Europe and suspend another in October. The routes being canceled are Detroit-Dusseldorf and Hartford-Amsterdam, and the Minneapolis/St.Paul-Paris service will be suspended through March.
Some discount airlines are taking steps to attract more business travelers as they face slowing growth and higher costs, the Wall Street Journal's Scott McCartney writes. JetBlue Airways recently began offering refundable fares, and Southwest Airlines has created a new fare for business travelers who want to purchase the best seats, he writes.