Thursday, July 10, 2008
AIRLINES
E.U. Moves to Stop Misleading Ads
The European Parliament approved a bill to prevent airlines from posting advertisements for cheap flights that hide the true price by excluding additional charges, like taxes and booking fees.
The bill passed without a vote because none of the 785 members of the E.U. assembly raised objections.
A European Union report in May said that a third of people who shop for flights online are being cheated by misleading ads and price schemes.
AUTOMOTIVEGM Sales Rise Abroad in First Half of 2008
Despite trouble on the home front, General Motors is posting strong sales overseas. GM Europe said its sales rose by nearly 3 percent in the first half of this year, bolstered by stronger demand for its Chevrolet brand. Earlier this week, GM said its sales in China rose 12.7 percent in the first half of the year.
The results helped offset losses in the United States, where the automaker's sales fell 16 percent in the same period as high gas prices and a weak economy took their toll on truck and sport-utility vehicle sales.
GM Europe's June sales, however, dropped 5.5 percent as growth and consumer confidence declined, and as inflation rose across the region.
BELGIUMHigh iPhone Price Blamed on Subsidy Ban
Belgians can buy one of Apple's coveted iPhones on Friday, but at the highest prices in the world.
The eight-gigabyte iPhone will sell for about $825 -- more than four times the U.S. price. The 16-gigabyte version costs $966.
Belgian Enterprise Minister Vincent Van Quickenborne blamed a law that forbids companies from subsidizing a product by charging more for something else, as is common elsewhere. He said he will try to scrap the law in September.
The Belgian iPhone carrier, Mobistar, said it still expects lines at stores in Brussels on Friday.
EUROPECentral Bank Chief Says Inflation Will Linger
European Central Bank President Jean-Claude Trichet warned that euro nations are seeing the first signs of an inflation price spiral, and he called on governments to avoid wage hikes that could further raise prices.
Trichet said current inflation levels were set to stay high before cooling gradually next year.
He said schemes that tie wages automatically to price increases were of "particular concern and should be avoided." He also admonished governments for failing to stick to commitments to keep budget deficits low.
Yearly inflation in the 15 countries using the euro spiked to an estimated 4 percent in June, the fastest price acceleration in the 16 years of keeping records. That prompted the central bank to raise borrowing costs last week for the first time in a year -- to 4.25 percent from 4 percent.
Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.
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