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Spain's inflation rate fell for the first time in eight months in April as slower growth eased pressure on prices.

Consumer prices gained 4.2 percent from a year ago using the European Union's calculation method, less than the 4.6 percent increase in March, the Madrid-based National Statistics Institute said in an e-mail today. Economists expected inflation to slow to 4.4 percent, according to the median of 10 estimates in a Bloomberg News survey.

“This is a result of the economic slowdown,'' Ivan Barbacid, a strategist at Barclays Fondos in Madrid, said. The difference between Spain's inflation and the euro-region average, which was 3.6 percent in March, “will narrow further, and if we have a very acute slowdown, it could close completely.''

Spain's economy will probably expand this year at the slowest pace since 1993, when the country suffered its last recession, as a 10-year construction boom ends and falling real estate prices weigh on consumer spending. The economy will expand 2.3 percent this year and next the government said last week, compared with 3.8 percent last year.

March retail sales slumped 5.5 percent on the year after adjusting for the number of days worked, a separate report said today http://us-fast-cash-now.com payday loans. Domestic demand growth will slow to 2.6 percent this year from 4.6 percent in 2007, the government forecast last week.

Sales Decline

Retail sales are dwindling across the euro region as rising food and energy prices leave consumers with less to spend. The Bloomberg European retail purchasing managers index fell the most in four years in April, according to a report published today.

The surge in oil and food prices is fueling inflation pressure across Europe even as economic growth wanes. The European Commission yesterday forecast inflation will average 3.2 percent across the euro region this year, that's 0.6 percentage points more than the commission's February estimate.

The price of crude oil has gained 24 percent this year and touched a record $119.93 a barrel in New York yesterday. Crude traded at $117.85 at 10:05 a.m. in Madrid.

The European Commission will publish April's initial estimate tomorrow. The 3.6 percent rate in March was the highest in the single currency's history.

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Despite hopes the worst could be over for Motorola Inc’s (MOT.N: Quote, Profile, Research) struggling cell-phone business, the company is still a risky bet, according to analysts who cite operational, economic and credit concerns.

Motorola shares, which have lost about 65 percent of their value in the last 18 months, may prove to be a bargain if the company shows sure signs of a recovery in the mobile phone unit. But this is not even a reasonably safe bet yet, based on the company’s most recent financial results and forecasts.

“We’re not really there yet from an investment point of view. Just because a stock is cheap it doesn’t necessarily mean it’s a bargain,” said RBC Capital analyst Mark Sue.

Based on his 2008 revenue estimate, Motorola’s share price of around $9.24 implies a 0.5 enterprise value-to-revenue ratio.

Citigroup credit analyst David Hamburger warned Motorola may even see a rating downgrade to junk status from investment grade as soon as a year from now, unless it logs strong improvements.

Motorola posted a wider quarterly loss on Thursday with weak cell-phone sales, particularly in its top North American market payday loan low fee http://paydayloans-on.com. The company that once wowed consumers with its slim Razr phone said its global market share had slid to less than 10 percent from a peak of 23 percent in late 2006.

In the meantime, bigger rivals Nokia Oyj (NOK1V.HE: Quote, Profile, Research), which has a 41 percent market share, Samsung Electronics Co Ltd (005930.KS: Quote, Profile, Research), which had a 16 percent share, and smaller rival LG Electronics (066570.KS: Quote, Profile, Research) all gained ground in the quarter.

“We’d rather own Nokia or Qualcomm or LG Electronics,” said Nomura analyst Richard Windsor. While Motorola may yet improve, “I don’t think you have to invest in it yet.” 

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Argentine Economy Minister Martin Lousteau resigned four months into President Cristina Fernandez de Kirchner's administration amid disputes over farm policies and accelerating inflation in South America's second-largest economy.

Lousteau, 37, struggled to address questions about the credibility of inflation data and avert a strike by farmers that led to food shortages and the biggest anti-government demonstrations since 2001. His appointment to the Economy Ministry was one of the few cabinet changes Fernandez made after succeeding her husband, Nestor Kirchner, as president Dec. 10.

“There was a need of a change,'' said Silvia Marengo, who manages $130 million of emerging-market bonds at Clariden Bank, in a telephone interview from London. “It's terrible that the conflict with the farmers is making the country lose a big opportunity to boost exports amidst high international prices of commodities.''

Lousteau's resignation comes as Argentina's government confronts farmers opposed to a new export tax regime announced March 11. A three-week strike by farmers that began last month led to road blockades and shortages of beef and dairy products across the country. Farm leaders said this week that there has been little progress in talks ahead of a May 2 deadline to resume protests.

Carlos Fernandez, who is not related to the president and was named head of Argentina's tax agency in March, was sworn in as Lousteau's replacement today at the Presidential Palace in Buenos Aires.

Farmers `Don't Care'

“I'm concerned about the economy,'' Fernandez told reporters today outside his home on the outskirts of Buenos Aires. He asked farmers to “remain calm, I'll do my best.''

Former President Kirchner said last night that farmers opposing a new variable export tax on grains and oilseeds are trying to “freeze'' Argentina's economy, which has grown faster than 8.5 percent in each of the past five years following the country's default on $95 billion of bonds in 2001.

“They want to sell everything abroad because food prices are absolutely expensive,'' Kirchner said in a speech to Peronist party supporters in Buenos Aires province. “They don't care about the stomachs or pocketbooks of Argentines.''

Confidence Declines

After the 21-day strike, confidence in Cristina Fernandez's government fell 7 percent from the previous month and 19 percent from April 2007, according to a poll released yesterday by Torcuato Di Tella University.

The university's main confidence index — measured from 0 to 5 — fell to 1.74 from 1.86 in March, a 7 percent drop and 19 percent below April 2007 payday loans in 1 hour payday loan.

Confidence in the government's capacity to solve problems, measured in percentages, fell to 52 percent from 57 percent the month before, the survey showed, while the government's positive rating fell to 28 percent from 31 percent.

The university's poll of 1,200 people was conducted April 3 to April 11 by Poliarquia Consultores and has a margin of error of 2.9 percentage points.

“The growing conflicts and a confrontational policy regarding farmers will deepen economic uncertainty and that will probably be reflected in more drops in President Fernandez's popularity,'' said Rosendo Fraga, a political analyst who runs Nueva Mayoria pollster in Buenos Aires.

Inflation Accelerating

Government inflation data has been questioned by opposition leaders, economists and institutions including the International Monetary Fund since Kirchner started replacing personnel at the national statistics institute in January 2007. Kirchner said the moves were made to “improve operations.'' Critics, including former Economy Minister Roberto Lavagna, called it manipulation.

“We know how much inflation affects income,'' Lousteau said April 22 in a speech in Buenos Aires. “The best administration is the one that has the country grow at the highest sustainable rate possible.''

According to the government, Argentine inflation accelerated to 1.1 percent in March from February and to 8.8 percent from the same month a year earlier. Claudio Mauro, an economist at M&S Consultores in Buenos Aires, said April 10 that annual inflation is closer to 22 percent.

“I'm not sure the change was positive because Carlos Fernandez will be stronger defending the government position against farmers,'' said Marengo at Clariden Bank. “The government has to find a solution but it seems that this appointment puts more pressure.''

The yield on Argentina's benchmark 8.28 percent bonds maturing in 2033 jumped 65 basis points, or 0.65 percentage point, to 10.98 percent at 6:04 p.m. in New York, according to composite data compiled by Bloomberg. The bond's price fell 5 cents on the dollar, the biggest drop since July 26, to 75.5 cents. The price is the lowest since the government issued the security in December 2005.

Argentina's peso gained 0.4 percent to 3.174 per dollar.

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Fitness product company Nautilus Inc. on Thursday announced a plan to reorganize into three stand-alone business units, according to a fitness industry news Web site.

Fitnessbusinesspro.com reported that the Vancouver, Wash.-based Nautilus (NYSE: NLS) will now have three separate units: direct, commercial and retail. All three units, as well as Nautilus International, will report to Tim Joyce, senior vice president and general manager of Nautilus, the Web site reported.

Bill McMahon will serve as vice president and general manager of the direct business unit cash advance loan fast cash now. Jon Levin will hold the same title with the retail business unit, while Ken Fish will hold the title for the commercial business unit.

Nautilus earlier this week announced that the sale of its Pearl iZumi apparel and footwear segment to Shimano American Corp. had closed.

Irvine, Calif.-based Shimano will pay $65.3 million in cash and assume $4.1 million in long-term debt.

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The Center City Development Corp. board of directors received updates on Downtown retail strategy, Court Square development and problem loans during its regular meeting Wednesday.

Margaret McCauley, principal of Economics Research Associates, gave the board a report on developing retail along Downtown's Main Street.

The CCDC retained the Washington, D.C.-based consulting firm to evaluate retail conditions in Downtown and to create a merchandise mix plan and implementation strategy. It is partnering with Linx Consulting, a minority-owned firm in Memphis, on the project.

ERA's report called for the return of traffic to Main Street, stating "pedestrian and trolley mall on Main Street thwarts retail success and is a major barrier for retail recruitment."

McCauley pointed out several principals of good retail in the report, such as unique and distinctive storefront design, avoiding generic storefronts, adding creative and concise signage, engaging displays, creative and colorful merchandising and active and well-designed retail space in parking garages.

The report separates Main Street into three sections: Pinch District, Main Street Core and South Main Street quick payday loans $1500 payday loan.

McCauley said South Main Street has the most potential to grow as a retail district, as it has existing retail and restaurants.

She said the timeline for retail recruitment in the Main Street Core will depend on the reopening of the transit mall.

Center City Commission staff reports have stated there once was 200 pedestrian malls across the U.S. and now that number is less than 30.

McCauley discussed examples of failing transit malls in Denver and San Diego.

She also pointed to retail success stories in Portland, Ore., and Philadelphia, where transit malls were reopened.

The report listed the Pinch District as a "long-term development" which could take about 10 years to attract significant retail.

ERA's study also suggested the medical center and south central business improvement district would be the best locations for a grocery store.

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The country’s economic health deteriorated further in the early spring as shoppers buckled under the strains of the housing and credit debacles and a weaker employment climate.

Manufacturers and other businesses, meanwhile, were walloped by zooming prices for energy and other raw materials. However, their ability to jack up retail prices to customers was mixed, with some companies restrained by competitive pressures, according to the Federal Reserve’s new snapshot of nationwide economic conditions released Wednesday.

"Economic conditions have weakened," the Fed report stated.

Many analysts believe the economy has fallen into a recession, predicting that economic activity contracted in the first three months of this year and is still ebbing now.

Even Fed Chairman Ben Bernanke recently acknowledged for the first time that a recession was possible. That was a rare utterance of the "r" word for a Fed chief. The government later this month will report on the economy’s first-quarter performance.

The report underscored the challenges facing Bernanke and his colleagues as they fight to keep the economy from sinking into a deep recession, while at the same time avoiding a flare-up of inflation. The report will figure prominently when the Fed meets next on April 29-30 to decide its next move on interest rates.

The Fed, which has been cutting rates since last September to bolster the economy, turned much more forceful in January, when conditions took another turn for the worse. Many economists believe the Fed will lower rates yet again at the April meeting to help shore things up.

Even with the rate reductions, though, consumers have turned more cautious, the Fed report suggested. Consumers are major shapers of the economy because their spending accounts for such a big chunk of overall economic activity.

"Consumer spending was characterized as softening across most of the country, with some districts reporting year-over-year declines in retail and or auto sales," the Fed report said creditreport paydayloan.

Merchants - other than auto dealers - reported that sales were "sluggish or declining" in 10 of the Fed’s 12 regions, the report said. With inventories of unsold goods starting to pile up, retailers in the Richmond, Va., and San Francisco regions have canceled orders, the report noted.

Lofty energy prices are squeezing businesses’ profits and pinching consumers, leaving them with less money to spend on other things. That is putting a damper on economic growth and also adding to inflation pressures.

Oil prices, which recently hit a record of close to $115 a barrel, eased a bit on Wednesday. Gasoline prices have soared, too, marching towards $4 a gallon.

Businesses are having to cope with higher prices for food products, fuel and energy products and many raw materials, the Fed report said.

"Most manufacturers have or are planning to increase prices" in response to such rising costs, the Fed said. However, the response of companies in the service sector has been more mixed, the Fed said, "in part due to differences in competitive pressures."

Overall, though, most of the Fed’s regions reported "little change in retail price inflation," the Fed report said, suggesting that producers - and their profits - are especially getting hit by rising energy and raw material prices.

The government reported on Wednesday that consumer prices went up by a relatively modest 0.3% in March. Producer, or wholesale, prices, meanwhile rose a lot faster - by a whopping 1.1%. 

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Britain had a 10.2 billion-pound ($20.4 billion) budget shortfall in March, a third more than economists forecast, driven by higher capital investment and an increase in spending by state-owned companies.

The gap was the largest for the month since records began in 1993 and widened from 7.1 billion pounds a year earlier, the Office for National Statistics in London said today. The median forecast in a Bloomberg survey of 17 economists was 7.8 billion pounds.

Gilts extended losses amid concern Britain may sink deeper into deficit as a worsening economic slowdown erodes taxes on everything from home purchases to bankers' bonuses. Economists and opposition parties say Chancellor of the Exchequer Alistair Darling has little scope to help the economy by cutting taxes after his Labour government let spending soar since 2000.

“The public finances are in no way ideally positioned for the slowdown,'' said David Page, an economist at Investec Securities in London. “They've got almost no room to step up borrowing.''

The yield on the two-year government bond, among the securities most sensitive to the interest-rate outlook, climbed 17 basis points to 4.31 percent. Yields move inversely to bond prices.

Below Forecast

The budget deficit for the fiscal year through March was 35.6 billion pounds, less than the 36.4 billion pounds Darling forecast in his budget last month. Borrowing in February was 247 million pounds, 2.4 billion pounds less than first estimated.

Revenue in the last financial year rose 5.7 percent and spending increased 6.1 percent. In March, revenue rose 7.6 percent, helped by a near doubling of corporation tax receipts. Income tax rose 4.4 percent and value-added tax, a levy on sales, rose just 1.7 percent. Spending gained 7.6 percent.

Central government net investment rose 47 percent from a year earlier to 7.5 billion pounds. Borrowing by public corporations outweighed an improvement in the fiscal position of local authorities.

In his March budget, Darling added 20 billion pounds to his deficit forecasts for the four years that began this month as the credit famine deepens a housing market slump and curbs consumer spending free credit report online cash advance.

The value of home loans fell 17 percent in March from a year earlier, the Council of Mortgage Lenders said today. In a separate report, the Bank of England said annual growth in M4, the broadest gauge of U.K. money supply, slowed to 12 percent from 12.4 percent in February.

Optimistic

Darling's forecast of economic growth of as much as 2.25 percent this year may still be too high, economists say. The International Monetary Fund last week predicted an expansion of 1.6 percent, the least since 1992, the year after Britain had its last recession.

“If the IMF's forecasts are correct, then this could add around 10 billion pounds a year to borrowing,'' said Gemma Tetlow, an economist at the Institute for Fiscal Studies in Loondon. “It would be problematic for the chancellor, as his forecasts give him virtually no room to maneuver against either of his two self-imposed fiscal rules.''

The current budget, which measures a golden rule that the government raises enough tax revenue to cover day-to-day spending and borrows only for investment over the economic cycle, was in deficit by 7.6 billion pounds in the last fiscal year. Net debt stood at 36.7 percent of gross domestic product in March, about 50 billion pounds below the 40 percent ceiling set by the government.

A cash-based measure that indicates how much the government needs to borrow through bond sales was in deficit by 12.7 billion pounds in March. The median forecast in a Bloomberg survey of 22 economists was 18 billion pounds.

The decline from 17.3 billion pounds in March 2007 was partly because departments refrained from a year-end spending spree, the statistics office said. Asset sales and gilt redemptions helped to limit the cash requirement for the fiscal year to 26.6 billion pounds, 9 billion pounds less than a year earlier and below the 33 billion pounds the government forecast.

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Linens ‘n Things Inc. will defer a $16.1 million interest payment due Tuesday and is in talks about staging a capital restructuring with the interest holders.

The announcement comes as bankruptcy talk has swirled around the struggling home-goods retailer, which has been caught by an increasing debt load and shrinking housing market.

The Clifton, N.J.-based chain, which had 589 stores in 47 states as of Dec. 29 and employs 17,000 people, was acquired in February 2006 by Apollo Management LP for $1.3 billion. The housing crisis made the home-furnishings space ultracompetitive, and the debt on the retailer’s balance sheet gave it diminished flexibility to ride out the downturn.

Amid a disappointing holiday season and flat same-store sales, Linens ‘n Things lost $62 million on sales of $962 million in the fourth quarter.

Chairman and Chief Executive Robert J. DiNicola said Tuesday that despite the efforts made to improve operations since Apollo’s takeover, "these measures have not produced acceptable financial results pay day loans easy payday loan. The increasing deterioration of the credit markets and the residential real estate meltdown, both stemming from the turmoil in the subprime mortgage market, and the resulting downturn in consumer spending, especially in the home sector, have combined to create additional and acute financial challenges for the company and the retail sector as a whole."

The troubles "have had a dramatic effect on our liquidity outlook for the remainder of the year," he added. "We have made the decision to postpone today’s interest payment as we continue to work with our constituencies to explore a number of alternatives to strengthen our balance sheet and improve liquidity." 

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Southwest Airlines Co. says its 2008 fuel bill will rise more than $500 million - nearly equal to its entire profit last year.

In a regulatory filing Thursday, Southwest comments echoed recent similar forecasts of higher fuel costs from American Airlines and Continental Airlines Inc. and underscored the industry’s vulnerability to rising oil prices.

Dallas-based Southwest spent $2.54 billion on fuel last year, so the forecast of a $500 million increase would push the airline’s 2008 fuel bill over $3 billion.

The company said it would try to offset fuel costs by raising more revenue and controlling other costs.

For several years, Southwest has benefited from fuel hedging. Southwest has paid upfront for the right to buy fuel at certain prices. When fuel prices began rising earlier this decade, Southwest was able to lock in below-market prices for most of its fuel.

While still less than what rivals pay, Southwest’s average fuel price has risen from 72 cents per gallon in 2003 to $1.70 per gallon last year.

Southwest (LUV, Fortune 500) has hedged 70% of its 2008 fuel needs at the equivalent of $51 per barrel for crude oil - less than half the current price of oil.

American, a unit of Fort Worth-based AMR Corp., (AMR, Fortune 500) said recently it expects to spend $9.3 billion for fuel this year, up from $6.7 billion last year.

Houston-based Continental (CAL, Fortune 500) said last month it expects its fuel bill to rise $1.5 billion in 2008 no fax payday advances credit report. Chief financial officer Jeff Misner said the airline couldn’t raise fares quickly enough to cover the cost of fuel.

United Airlines (UAUA, Fortune 500) said it faced a $1.2 billion increase for fuel this year, and Delta Air Lines Inc. (DAL, Fortune 500) said it expected to pay $900 million more. Northwest (NWA, Fortune 500) was budgeting for $800 million more.

Fuel is typically an airline’s second-leading cost, after labor. Airlines are trying to offset surging fuel prices by reducing flights, trying to raise fares, and adding new charges, like fees to check a second bag. 

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Israeli Finance Minister Ronnie Bar-On told the Cabinet today that the government will have to avoid new spending commitments this year and next, and may “adjust'' previous obligations to contend with a slower economy.

Israel faces “more moderate growth'' this year because of the global economic slowdown and the shekel's appreciation against the dollar, Bar-On told ministers in remarks summarized in an e-mailed statement from the Jerusalem-based Finance Ministry.

Israel has been able to meet or exceed its budget deficit and spending growth targets in each of the last four years as a growing economy boosted tax revenue. The International Monetary Fund last week lowered its estimate for 2008 Israeli growth to 3 percent, which would be the slowest pace since 2003.

“We will keep to responsible economic policies, which will require us to adjust the commitments we agreed to make in the framework of permissible spending in 2008 and 2009, and to avoid agreeing to additional budgetary allocations,'' Bar-On was quoted as saying in the statement.

The government remains committed, even as the economy slows, to its goal of reducing debt as a percentage of gross domestic product, lowering taxes and keeping to the spending- growth target, Bar-On said today.

Israel's budget surplus for the first three months of this year narrowed to 5.6 billion shekels ($1.56 billion) from 6.4 billion shekels a year earlier, the Finance Ministry said on April 2 bad credit payday advance free credit report and score.

Shekels' Gain

Bar-On said Israeli financial markets had been “relatively'' unaffected by the global liquidity shortage created by the subprime crisis. Instead, the strength of the shekel, which reached an 11-year high against the dollar on March 13, and the slowing global economy will probably cool economic growth this year, Bar-On said.

Bank of Israel Governor Stanley Fischer told the Cabinet that the shekel will probably continue appreciating against the dollar over the “medium and long term'', TheMarker.com online news service reported, without saying where it got the information.

The yield on the government's Shahar bond due in 2016 fell to 5.54 percent today, its lowest in about three weeks.

Fischer backed Bar-On on the budget restraint and tax break for business while opposing further tax cuts, TheMarker said. A spokeswoman for the central bank said she couldn't immediately confirm the remarks.

Israel should be able to weather the global slump because the economy is “balanced'' as it relies on both exports and consumer spending for growth and has a current account surplus, he said.

Bar-On urged ministers to ensure that two of his initiatives, to aid exporters through a government fund and to implement an accelerated-depreciation program, weren't delayed by red tape.

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